Indicators that You May Be Placing Your Business in Jeopardy
For every business person and entrepreneur, dealing with money can be challenging and sometimes well . . . tiring. In terms of business, many entrepreneur’s (creative and otherwise) feel that business money matters are practically insurmountable and they will never be able to understand what they need to know and what is the most important for their business.
What Exactly is the Problem?
From working with many entrepreneurs – there are 2 overwhelming problems that come up regularly, regarding handling business money and dealing with finances:
This situation is often due to:
• Limited knowledge about what managing money in their business really means
• Lack of clarity as to how to move forward in order to work with their business money
Knowing that you have a problem with handling your business money is not always apparent. You need to observe your behaviour to uncover if you really have any challenges.
Here are some indicators that your business money management is a problem if you:
- ignore your bookkeeping and/or you don’t understand it
- never look at your bank account balance
- your business bills are accumulating
- are unsure how to manage cash
- have money to collect from clients/customers
- don’t have proper budgeting in place
- ignore your business mail
- are transferring your own money in the business
- are not taking a salary or reasonable salary for yourself
- don’t have a good set of financial statements
- don’t understand business financials
- ignore and don’t track your business numbers on a monthly basis
- don’t review your business numbers on a regular basis
- avoid or don’t have monthly or quarterly money goals
- can’t honestly create proof that verifies if your business is viable
What did you discover about yourself in relation to your business money behaviour?
The intent here was not to scare or frighten you, but to get you thinking. To make you aware of what is causing your business money problems and how they will likely continue until you take the steps to fix them.
Start thinking about what your priorities are, where you are and where you likely should and want to be with your business money.
You need to understand enough about your business money, so that it’s meaningful, but not so it becomes overly complex.
With an attitude shift and knowing a few key strategies – you will find that it isn’t as challenging as it seems. You should really want to know and learn about this aspect of your business as it is so important to your business future.
To feel and see the “money puzzle” fit together and that it all makes sense to you and your business.
Taking the necessary steps to improve your relationship with your business money will give you renewed strength and stimulate greater and better creativity in your business.