When running a business, it’s imperative that you know where your money is coming from and where it is going… to the penny. This may sound a bit intense, but any less than total attention to business finances can result in some serious consequences.
Entrepreneurship is often driven by a strong passion and drive to succeed at something bigger than ourselves. But it’s also uncharted territory for most of us… territory which can sometimes be tricky to navigate with so many responsibilities to juggle. Especially if money is an issue.
Money is a loaded word, because the success of a business depends upon having enough… and the pressure to create enough may lead to avoidance or denial.
The stress around money may even cause some business owners to ignore the problem all together.
As an entrepreneur, your ingrained personal beliefs about money – do you see it as good or bad, easy or difficult? –will absolutely be revealed in the way you handle your business finances.
By carefully managing your numbers, you’ll learn a lot about what is working well in your business – which activities are generating profits – and what aspects could be improved upon.
Here are some key questions to answer about your money:
- Do you have a budget for your business? If so, how often do you review it?
- Do you check in daily or weekly with your business cash flow?
- Do you do a quarterly or yearly profit and loss statement for your business?
If you answered no to any of these questions, add this to your list of business goals for this quarter: schedule time to streamline your business systems to include a regular update of your business books.
As always, let me know if I can help.
Until next time,