It’s time to unroot the truth about entrepreneurial failure - Lack of Financial Responsibility! After many years in working with business owners from all walks of life, in all kinds of industries, of all ages and nationalities, I can finally and safely pinpoint the #1 reason why small businesses don’t sustain. The failure rate of all business start up’s is directly linked to the common theme of financial avoiders. This year I want to urge you all to become an excellent money manager. This will be your insurance to success!
I have the ultimate pleasure of meeting hundreds if not thousands of business owners every year from a diversified range of industries and with little similarity of their demographical profile. Yet they have a couple of things in common:
Firstly they are truly passionate about what they do. Typically they share very high work ethics with an undeterred commitment of trying to be the very best they can, hoping to turn their passion into profits. And that is where it gets tricky! Profits! I would say 9 times out of 10 when asked, entrepreneurs have no definite figure of the amount of money they made last year, last month, last week or even today. We are talking only in terms of revenue. I have not even asked about profits, yet.
Lots of business owners are trying very hard to create a financial goal for the year because they have heard so many times the importance of goal setting. So now they have a target but they have no means of measuring against it. I want you all to know, this is true for most business owners. Everyone is so busy with worrying about attracting a client, acquiring a client, retaining a client as well as the day to day operation and administration, that they feel they can’t take on the worries about the financials as well.
Reading this I truly hope, you are currently having an AHA moment. Because when you look at the order of importance of running a sustainable business, finances are right up there with clients acquisition and retention! So why don’t they pay more attention or give some focus to it? Well, I have asked many and some of them are scared that the financial rewards do not reflect the hard work they are putting in, some of them think there is not enough money yet to manage, and some of them simply don’t know where to start.
So for those of you who are scared, let me tell you it is much more stressful not knowing rather than having the control. And if you really are not making enough money to warrant the amount of time you are investing, you will want to know about it, so you can make changes to your business model.
For those of you who think there is not enough money yet to manage, that is a terrible excuse! Get into good money management habits from the start. You still need to know all the aspects of the financial situation at all times so you can measure, learn and adjust as necessary.
And for those of you who simply don’t know where to start, there are tons of resources and professionals who will support you as much or as little as you need and can afford. But ignoring it altogether, will come and bite you big if left undiscovered.
Now that you know the importance of managing your company’s money, you clearly have two choices, ignore it and become part of the statistics or control it and become successful in your business.
Get in touch if you need help with finding the right professional connection or resources to make you an excellent money manager. It’s all about the profits because profits equals money and time to do what you want to do and not what you have to!
Yours in business & life,
Conny
Firstly they are truly passionate about what they do. Typically they share very high work ethics with an undeterred commitment of trying to be the very best they can, hoping to turn their passion into profits. And that is where it gets tricky! Profits! I would say 9 times out of 10 when asked, entrepreneurs have no definite figure of the amount of money they made last year, last month, last week or even today. We are talking only in terms of revenue. I have not even asked about profits, yet.
Lots of business owners are trying very hard to create a financial goal for the year because they have heard so many times the importance of goal setting. So now they have a target but they have no means of measuring against it. I want you all to know, this is true for most business owners. Everyone is so busy with worrying about attracting a client, acquiring a client, retaining a client as well as the day to day operation and administration, that they feel they can’t take on the worries about the financials as well.
Reading this I truly hope, you are currently having an AHA moment. Because when you look at the order of importance of running a sustainable business, finances are right up there with clients acquisition and retention! So why don’t they pay more attention or give some focus to it? Well, I have asked many and some of them are scared that the financial rewards do not reflect the hard work they are putting in, some of them think there is not enough money yet to manage, and some of them simply don’t know where to start.
So for those of you who are scared, let me tell you it is much more stressful not knowing rather than having the control. And if you really are not making enough money to warrant the amount of time you are investing, you will want to know about it, so you can make changes to your business model.
For those of you who think there is not enough money yet to manage, that is a terrible excuse! Get into good money management habits from the start. You still need to know all the aspects of the financial situation at all times so you can measure, learn and adjust as necessary.
And for those of you who simply don’t know where to start, there are tons of resources and professionals who will support you as much or as little as you need and can afford. But ignoring it altogether, will come and bite you big if left undiscovered.
Now that you know the importance of managing your company’s money, you clearly have two choices, ignore it and become part of the statistics or control it and become successful in your business.
Get in touch if you need help with finding the right professional connection or resources to make you an excellent money manager. It’s all about the profits because profits equals money and time to do what you want to do and not what you have to!
Yours in business & life,
Conny
Inspiring as ever Conny. Can we touch on this when we next talk. I do keep on top of my finances, but I can do more.....maybe I should do a deal with an Accountant!?
ReplyDeleteNatalie
Thank you, Natalie. I am glad the post has been of good insights! Lets discuss a suitable finance management strategy when we connect :)
ReplyDeleteHappy greetings from across the 'pond'!
Conny