I have one question for you… are you giving your business all you have, but keeping one eye on the exit sign? If your answer is yes, that makes you like most entrepreneurs I’ve worked with before they started The Miracle Money Method.
It’s hard to run a business these days. It’s rare that the vision of the joy, profitability and financial freedom you had when you started matches the reality of owning your own business. And it’s common to have those days where you’re tempted to throw in the towel and walk away.
For most entrepreneurs, managing the financial side of their business is top of the list of things that suck up their energy and take the satisfaction out of being a business owner. It’s also the thing that brings the most stress and shifts your focus off of productive activities that grow your business. It really helps to have a plan in place to take the worry out of the finances, promote profitability, and put the focus back on doing the things in your business that energize you and bring results.
Here are just a few strategies you can implement to relieve the stress of money worries and get you back to loving your business again.
- Face the truth about your business finances. Yes, it’s hard to do, but avoiding the truth about your finances will just keep you spinning in frustration and sap your energy for more productive days. And ignoring the problems will not make them go away. Your business’ financial health is the single most important factor in your success or failure as a business owner. So, take the time to face the truth. You can’t fix it if you don’t face it.
- Put an end to cash-flow issues and the ‘feast or famine’ cycles. Nothing can cause more stress to a business owner than being unprepared for large, unplanned expenses. When those big expenses come up (like taxes and equipment repair or replacement), you’re left scrambling, trying to figure out how to make the money to cover them. Use a system of revenue allocation to create accounts specifically for operating expenses and taxes to be sure you always have what you need and you’ll never be blindsided or unprepared for large expenses again.
- Tame those stress-inducing, out-of-control expenses and become intentional about managing your operating expenses. Expenses can easily (and quickly!) get out of control if you’re not intentional about where your money is going. Traditionally, expenses come out of the one account where all of your money goes as it comes in. It’s easy to “overspend” when you’re pulling from one big account. Base your decisions about monthly expenses on what is left after you’ve been paid and money has been set aside for things like taxes. You’ll get your company running lean and be prepared for a slow sales month or anything else that comes your way.
It is possible to live the dream you envisioned when you chose to start a business, but you need to have a system in place and make conscious financial choices. Even though it’s still a lot of hard work, a lot of the stress and worry can be relieved with some very simple tweaks to how you manage your business finances. And when you’re no longer stressing, worrying and scrambling to make it all work financially, you’ll have more time to focus on the business activities you love doing. And more time for the people and things that mean the most to you.