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- Feeling Confident in Your Business Money Management. - December 17, 2020
Business money management is a thing, even when we don’t like to talk about it. And I know that entrepreneurs don’t like to talk about it. Odd, isn’t it? We will chat about the failed product launch, or the marketing strategy that didn’t quite return the results we wanted, but I’ve never seen a social media post that said, “I lost $5,000 last month, anyone who can help me with my finances?” Why is that?
By Dawn Kennedy, Financial Coach & Business Strategist. CEO of Entre Money Coach.
Steps to Take: Confidence in Your Business Money Management.
We have a lot of shame wrapped up around our money. And I’d like to change that conversation. First of all, money management is not an intuitive thing, and BUSINESS money management definitely isn’t. Yet, we tend to hide from our money things, as if we are supposed to magically know how to do everything just because we opened a business. And this attitude is causing entrepreneurs to needlessly struggle, and it robs us of our entrepreneurial joy. That’s why I’ll be showing you a few steps to take to feel more confident in your business money management.
Don’t be afraid of your money.
The first thing we need to do is step up and say, “enough! I’m not hiding from my money things anymore.” We can be empowered to take control even in the midst of severe financial issues by making the decision to be in control. If this is you right now, just decide. I’ve walked that journey and I know how uncomfortable it can be to face your finances if they are in disarray. But you will feel so empowered when you decide to be in control. Then you can learn the steps to take. I promise you will stop losing sleep at night if you decide to take control.
Be intentional with your money.
Next, we need to be intentional with our money. Do you know how much debt you have? Do you know how much your monthly expenses are? Are you intentionally paying bills and tracking income, or are you winging it? If you are a winger, I get it. My husband and I ran a company for 2 ½ years by winging it. Unfortunately, I also racked up over $76,000 in debt and got an IRS lien put on my house for unpaid self-employment taxes.
This is because I was out earning my mistakes and never saw the danger. Every month we cleared the bills, but our cash flow was a wreck. We always just made more sales or set out to “just get more work,” never stopping to see where we were, and where we wanted to go. Time to face your money and say, “I am going to be very intentional with everything that comes in and everything that goes out.”
Taking Action: One great way to start being intentional is to take the expenses off of autopay to the maximum extent you can and pick two days every month that you will pay all the bills. Revoking another company’s access to your checking account will keep you in control of your cash. Money stuff happens. There may be a chargeback, or a client pays late. You will greatly reduce the risk that someone will put you in the red when you are the only one spending money in the account.
Ask for help.
Third, we get strategies, and we get support. We ask for help. I think this is the hardest step because we think, “I should already know what to do, I’m just not doing it.” But do you know? Or are you trying everything – the software, the spreadsheets – and telling yourself that because you think you don’t deserve help or support? Honestly, a lot of times it’s the feeling of shame surrounding what we expect from ourselves that blocks us from learning what we need. There are a ton of resources available to help you get started. But really all you need is to track every single dime that comes in and know the numbers of what has to go out. That will empower you with your business money. To look at your statements, your Stripe and PayPal accounts regularly.
Taking Action: Here’s one great thing about tracking all of your money, there is no one “right way” to do it. I have clients who use spreadsheets and software, some who use calendars and templates. If you don’t have a way to track everything that comes in each week, grab a notebook, or explore some apps. Twice a month, when you pay the bills, write down the expenses that went out.
You get to decide the method that resonates with you and works with your personality. Also, it may take a few months to make this a habit, so give yourself grace as you put your business money management system in place. The key is to create a permanent change in your relationship to your money. One that will support your growth and longevity in business.
Have the right money mindset.
Finally, your money mindset needs to have a little gratitude in it. Money mindset wasn’t something I had even heard of until last year. But the work is powerful and can change the way you view your finances and really help you change your relationship with money. Remember, money is a business topic, whether or not we want to talk about it. I think we should talk about it. The way you view your money can be the difference between incredible joy in your business and stress. You can choose to have a positive money mindset no matter what happens in your business on any given day.
A money mindset that has a little gratitude in it can change the way you view your finances.Dawn Kennedy
Empowerment in your Business Money Management.
If you truly want to be empowered with your money, get intentional and mix it with gratitude. For example, when expenses are paid, say, “I GET to pay this bill because I am in business for myself.” Do a little dance when the cash comes in. I still do a little dance anytime I make a sale. It’ll keep your energy up. It will also make you feel really good about what you do. You need to celebrate every financial transaction because money is truly the byproduct of bringing your gifts to the world. Aim to always be of service and the cash will follow.
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