23 Oct Kick Your Money Problems to the Curb
When it comes to starting and running a profitable business, how you handle your finances can be one of the biggest predictors of your future success. I always hear entrepreneurs say, “I need to make more money,” but this may only be one side of the larger problem. Finding ways to generate more revenue is great, but if you have not analyzed how you spend your money, making more money may not be the financial fix.
If you feel like your finances are getting in the way of you performing at your best, or positioning your business for growth, then follow these 3 steps.
1) Make a detailed budget. This should ideally be a monthly budget, so you can consistently stay on top of your spending without falling into a financial hole that’s too deep to get out of. Analyze where your money is coming in and where it is going out. You need to have a strong grasp on how your money machine is operating so you can then pinpoint areas for growth and areas that may need to be reduced or completely eliminated.
2) Make saving a top priority. Whether you are investing your business’ profits back into the company or using it to buy stocks, the key is to always set aside a portion of your earnings. For my personal financial goals, I save at 25% of every dollar I make. For some this may not be a viable option to do right now – and that is okay. But, over time, you should be able to work up to this amount. For example, this month set aside 1% of your earnings into a savings account or investment that you will not touch. Next month, save 2%, the following month save 3% and so forth until you have worked up to 25%.
3) Be disciplined with how you approach your money. Having a budget and financial goals in place will be useless if you are not committed to following them. If you don’t have an accountability coach or team in place, then now is the time to do so. You should have systems that you can rely on to help you monitor your finances and keep you honest about your savings. For a detailed spreadsheet that can get you started on better managing your finances, click here to contact me and I will send it over.
These are just a few steps to get you started. But, remember, the key to success (even with your finances) is not in what you know, but how you execute.