Here's how you can effectively manage finances in a music business as an entrepreneur.

What is measured can be improved. Start with a balance sheet (assets minus liabilities equals net worth) to see where you are today. Then create an income statement (all income sources minus all expense sources) to see if you are cash flow positive or negative. Break out the expense categories into savings, taxes, insurance, living expenses and debt. Look at these numbers objectively. Remove your emotion, they are just numbers. Use this information to guide your next steps. You can use software, online spreadsheets or download 12 months of bank statements.

Do not let the tax tail wag the dog. It's common to try and write off every expense possible for your business. The law states "expenses that are regular and ordinary in the practice of your business" is deductible. Do not fall into the trap of buying extra equipment, subscriptions or trying to qualify vacations as business expenses. Spending more to save on taxes is counter-intuitive to your long-term financial success. Consider saving into a qualified retirement plan to reduce your tax burden while simultaneously setting your future self up for financial independence.

If streaming isn't paying what you think it should, then go elsewhere. Successful businesses don't complain about the current state of their industry. They find solutions and provide value to their customers. Do whatever it takes to make your business revenue support your lifestyle. Even if that means generating income outside of your business until it takes off.

Successful humans are emotional beings. Successful investing is emotionless. Emotions drive us to sell when investments are low (locking in losses) and buy when investments are high (missing the gain). The key to investment success is thinking long-term with your money. Compounding takes time (a lot of it) to work for you. Diversify your investments to capture gains wherever and whenever they happen. Make sure your money is tax-allocated properly (taxable brokerage, pre-tax, post-tax, tax-free) depending on when you need the money and what you need it for. Review the fees (expense ratio) of your funds and your financial advisor (if they manage your assets). Taxes and fees are the biggest driver (or dragger) of your investment returns.

There is good debt and bad debt. Good debt has low interest rates and the asset provides value longer than the life of the loan. Examples: Home mortgage, car loan, student loans. Bad debt has high interest rates and deteriorate your financial future. Examples: Credit cards and high-interest advances. Music funding startups are everywhere as private capital investment firms are looking for new places to make returns. Before getting funding you must take these three steps: 1. Decide whether your business actually needs funding now to succeed. 2. Make sure your personal financial situation is in order and capable of handling any debt you assume. 3. Thoroughly review the fine print and fees of the funding contract.