Every entrepreneur starts their business with a dream and high hopes for success. But running your own company can easily become a nightmare without a clear plan for managing finances. High hopes can be dashed quickly when the financial freedom new business owners envisioned suddenly morphs into a weight around their neck as they struggle to meet payroll and other expenses month-to-month.
Entrepreneurs have been led to believe that growth is everything and that the way to grow, grow, grow is to spend, spend, spend. So we, as entrepreneurs, look at what we have in the account when things are flush and imagine how much better it would be for our company if we had the newest, latest technology, hired more people or had a fancier location for our customers. After all, the money is there and it’s an investment in future success, right?
But what good is growing if it’s a house of cards that could collapse with one bad month of sales? The goal should be to have a financially healthy business, as opposed to one that is simply getting bigger. When it comes to business growth, bigger is not necessarily better if it means increasing debt or owners sacrificing their pay to make it happen. Taking out loans to keep the lights on or putting company expenses on credit cards isn’t uncommon when the panic sets in as you realize there’s a shortfall. But, while that may relieve the stress in the short term, it can really come back to bite you in the form of, you got it, more expenses.
Facing the Problem
According to Forbes, one of the top five reasons businesses fail is because they’re not profitable. There are several possible explanations for why a business might not be profitable, but the one that strikes me most is that new business owners are stuck using an accounting system that is antiquated – putting profits last. Profits are quickly eaten up by expenses, which always seem to expand to consume every last penny – and sometimes more.
You need to know the numbers — how much is coming in and what is needed where.
Financial success in business comes from sales (obviously), but also from the intentional allocation of revenue from those sales. Not having a system in place to allocate funds can be the beginning of the end for many small business owners. Most people don’t intentionally set aside the funds to sustain them when things are slow (or for those pesky taxes). When you’re pulling from one big “pot” of money, it’s hard to keep track of how much should be going where.
Finding the Solution
Working with a lot of businesses over the past 12 years (large and small), it concerned me to see very promising businesses operating in check-to-check and sell-spend-panic mode. I watched as business owners buried themselves in debt to stay afloat and suffered the effects of that tremendous burden on their health and their relationships as a result. I felt a call to action – like, somehow, my background and current path made me uniquely qualified to help. My logical mind knew there had to be a better way for them to run the money side of their businesses… I just wasn’t sure how to help.
So, just as I had done when seeking to help others streamline their time management and find work-life balance by founding The Productivity Experts back in 2003, I searched for answers and developed The Miracle Money Method system.
With my background in accounting, I understood that flipping the traditional accounting model could be a game changer. And I realized this could be HUGE for businesses of any size: a new way of thinking and handling revenue that relies on common sense with a concrete, easy-to-implement process to follow that ensures profitability.
I got more and more excited as I heard the stories and saw the results that came from implementing this simple system. And I knew that everything I had done to this point in my life had led me to this place where I could help entrepreneurs realize the fruits of their labor and rekindle their dreams. With The Miracle Money Method, I could help anyone willing to face the truth about the financial side of their business and draw a line in the sand to make their business profitable from that day forward.
The bottom line here is … your bottom line matters. Nobody starts a business with the intention of barely scraping by month-to-month or, even worse, closing their doors one day – bankrupt and feeling like a failure. It’s easy to get caught up in the “grow baby grow” mode that has historically been the goal – the benchmark for success – with little attention paid to whether or not that growth is solid and sustainable. But it doesn’t have to be that way!
I can show you how to turn your business finances around – fast! I can help you take your business from floundering to financially strong. I will guide you through the steps that will change your business and your life. So, draw a line in the sand, face the truth about your business finances and take control. Make your goal solid, sustainable growth and, trust me, you can become financially healthy, truly wealthy and wise.
For more information on The Miracle Money Method, or to schedule a FREE consultation, contact Cathy TODAY at Cathy@TheProductivityExperts.com or 314-267-3969.