October 18, 2020
Being an entrepreneur in today’s climate means wearing every single hat of your business. Even if you are delegating, you have to be aware and conscious of the action taken by the people you are investing in, and you have to be comfortable with being self reliant on all of the necessary day to day tasks should your business or staff need you at any given moment.
Some business owners prefer to delegate everything in their business, in favor of freedom. While some lean more toward the strategy of controlling every single aspect of their business to the extent that they cannot possible have the time to work on the business, instead of solely in their business.
As in every hot button topic, balance is THE answer. The life-cycle of your business will go through changes, developments, evolution, and growth.
The one non-negotiable that you need to understand and audit monthly as a business owner or entrepreneur is your finances. No matter how big or small your business is right now, you have to know how much is coming in and out of your accounts.
As promised, here are 3 HACKS that work for ALL SIZES of business to be the expert on your bottom line. Yes- you.. the teeny tiny, negative in the bank, 2 clients, hustling like crazy newbie entrepreneur. And you, you big badass with three businesses under your belt and more bank accounts than you know what to do with. Most of us are somewhere in between. These hacks work for them all.
1. Use an easy finance management software. I prefer Quickbooks, because it’s like the Tinder of money apps. Literally, swipe left for a business expense, swipe right for personal. It also subcategorizes the expenses: marketing, supplies, etc. and calculates your write offs. Just with a little swipey swipe.
2. Think about your money in percentages. Your business will grow, that’s the goal so just accept it now. Instead of focusing on the # in the black (or red- eek), think about the percentage of increase or decrease from your baseline. This will be easier for you to notice trends and identify when to cut costs, or even reallocating your profits to invest in growth.
3. Don’t think of your business finances like your personal finances. This isn’t a save up and spend it all scenario. Pay yourself a manageable wage, utilize strategy and a CPA to integrate benefits, and use your profits to refuel and invest in your business. You don’t have to have tons of cash in the bank to be smart about investing. If you’re consistently increasing profit, make sure you making your money work for you, such as getting a High Yield Savings Account, investing in retirement funds, or making tax deductible expenses so that you can lower your bracket and pay less to the government. A CPA will be able to guide you in this path.
Money comes to those who are ready for it, so invite it in, open yourself up to new experiences and new opportunities, and create the space for it.
Your money mindset may be complicated. It may include shame, anxiety, or even fear. Maybe making money has a negative feeling for you. It is difficult and stressful to work through these feelings, but you are not alone.
Bonus Tip #4: TALK ABOUT MONEY. Get comfortable with talking about money with colleagues, mentors, family. Talk specifics. Ask questions. Never compare yourself. You will soon realize that a lot of what you read on the internet is bullshit. Most people are out there hustling and looking toward the next goal. As a matter of fact, the most successful people can tell you the in and outs of their finances, what’s the next milestone or goal, and where that money will go. Money is an opportunity- it’s not some magic thing that appears in your account based on luck or karma.
You are an entrepreneur now! At the end of the day, you did all this so you could MAKE MONEY. Create a space for money to easily flow, and I promise you, it will come.
Amazon currently has both of Jen Sincero’s amazing books on sale for the price of 1. I wanted to recommend just the money book, but you might as well invest in both for the same price! + I may get a commission from Amazon if you purchase from my blog link below 🙂
I am currently working through this list of finance based podcasts. Join me!
Tori Dunlap saved 100k before she was 25. Her mission is to fight the patriarchy using financial independence. And I love her.
+ Full disclosure, I may get a commission should you choose to use my Quickbooks referral code, if you choose to sign up, let me know and we can exchange tips and tricks. I love it so much! It’s a win-win!