When you’re a business owner, finances can be a scary topic. You might feel frustrated that money isn’t coming in as quickly as you’re hoping. Maybe you avoid looking at your accounts because of the ‘truths’ those numbers are telling you. Or perhaps fear of rejection or another “no” is keeping you from making offers and sending out calls to action.
Thinking about money and business can feel overwhelming and exhausting. It could be the thing that’s holding you back and keeping you stuck where you are.
There are a few financial truths that I want to share with every business owner out there. Whether you’re new to the business world or an old hand, these tips will help you build and maintain a healthy relationship with the money that your business brings you.
It’s OK to not go straight into it full-time
Hustle is a magic word these days. The pressure to ‘hustle’ in your business is real. Lots of people will tell you that if you really want to have a thriving business, you’ve got to go all-in, commit and give up your safety net by quitting your job.
But I disagree. For many people, quitting your job and throwing all your energy into your business is not the right thing. And that is absolutely OK!
In fact, having a steady stream of income can give you the peace of mind you need to focus on your business. I often encourage people to keep their day job until they have a buffer that makes them feel comfortable. When you have a cushion, you have the freedom to try things out, take more risk, and even step away from the business when ‘real life’ needs some extra attention.
Even if you’ve already quit your job, it’s not a sign of ‘failure’ to take on some temporary work for a while. Reliable income can help you build up your savings buffer, enable you to take out a loan to invest in your business, and take the pressure off you.
You can’t ignore your finances and be successful
Lots of new (and not so new) business owners will avoid their business finances for as long as possible. But in reality, your cash flow is just raw data. It says nothing about you and your intrinsic value. There’s no judgment in the numbers. But you can mine the data to extract information – what’s working, what’s not working, where do you need to tweak and make some improvements. The sooner you start to look at your cash flow and understand your financial situation, the earlier you can take action. The earlier you take action, the easier it is to keep doing the things that bring in more money and reduce wasted money.
The best time to get to know your business finances is the day you started the business. But the second-best time is today. Get familiar with your money. Set up good financial habits like invoicing your clients on time, raising your prices regularly, and setting aside money for taxes and retirement. When you take these simple financial steps, you set yourself up for success.
Track your income daily. When you track regularly, you get to notice how you feel about yourself and your money. Are you stressed or losing faith if you have a couple of slow days? Or do you feel confident that the money will come and that a few zero-income days mean absolutely nothing about you? Pay attention to what’s going on in your mind and learn to gauge how you feel about money. What mindset shifts do you need to make to improve your financial success?
Strong boundaries will serve you well
When you’re self-employed, boundaries can be hard to respect. Wherever there’s an internet connection you can go to work – that includes your favorite coffee shop, a walk in the park, and dinner time with your family. You can end up giving free advice to everyone who stops you in the street or tags you on Facebook. And sometimes, you might end up going overtime with your favorite clients and ‘forgetting’ to charge out for it.
But a lack of strong boundaries can set you up to have less working time in your business, less downtime from your business, and less income than you deserve. After all, you didn’t go into business so you could be on-call 24/7. Neither did you go into business to make less money while being under more pressure (did you?). So really consider what boundaries you need to set and get them in place as soon as possible.
Revisit your boundaries often to ensure there hasn’t been any slippage.
Related article: Are Your Business Boundaries Sabotaging Your Income
There will always be more business upgrades and investments to spend on
It’s always a good habit to set aside some money for re-investing back into your business and supporting business growth. But sometimes, business owners get sucked into shiny object syndrome, buying thing after thing, course after course and forgetting what’s most important – drawing income from the business to pay the bills and support your personal life.
That $10,000 business coach is not necessarily what’s going to make your business a success. Nor is the new booking system, the fancy website, or the gorgeous photo shoot.
You are the key to your successful business. Make sure to invest in yourself. Pay yourself, give yourself days off, polish your skills, and treat yourself like the star employee that you are.
Take time out to manage your thoughts and beliefs about your business. Make solid, grounded choices that support what’s best for you and your business, not what everyone else thinks you should do. Review again and again what you really need to invest in for your business success. And how much money – and time – you actually need to invest.
Related article: What To Do When Your Money Mindset Isn’t Working
Manifesting money is only one piece of the puzzle
Since the movie The Secret was released over 10 years ago, the Law of Attraction and manifesting money have become popular mindset shifts among business owners. While there is truth and validity in these practices, if writing daily money affirmations and creating a vision board was all it took, everyone would be millionaires by now! Manifesting is only one part of bringing in money.
When it comes to the practicalities of money, there are two sides of the coin. You want to increase your income and minimize your expenses. You can do just one, but doing both will increase your wealth at a greater speed.
The same goes for your money mindset. You want to focus on attracting abundance into your world with tools like the Law of Attraction. But you also want to uproot the limiting beliefs that can keep you stuck. EFT/tapping is a wonderful tool that I use personally and with my clients to identify and release the negative beliefs about money that keep you stuck where you are or growing at merely a snail’s pace.
Once you put all these pieces together, you will not only grow your wealth – you will expand into your own brilliance.
If you are ready to get past your limiting beliefs and grow your wealth, I invite you to schedule a Free 60 minute consult with me.