Are you an entrepreneur, business owner, or individual planning to launch your own brand in the near future? Are these questions on your radar:
- How healthy is our cash flow?
- Are we taking on too much debt?
- How long can we cover our expenses if business slows down?
- Do we have enough capital to invest in growth?
If you find it tough to understand how money flows in and out or are currently stuck trying to stay afloat instead of increasing revenue, you will probably need to start making a few changes. For example, change your mindset and start taking control of managing your money the right way.
According to Peter Boolkah, an award-winning business coach, here are three steps to create a growth-focused approach to money management.
#1: Change your mindset
What thoughts do you have when it comes to money? Which of these ideas or feelings are holding you back? Can you reconsider and change them?
Those who identify money with fear may find themselves paying attention to getting out of debt or in a more extreme case – avoid looking at the company’s finances altogether. If that is you, see if you can change that mindset. Instead of fear, embrace your finances with an open attitude and you may probably find more opportunities for learning, wealth building, and growth.
Mr Boolkah believes that our business will grow to meet our level of desire and need. If you’re constantly in a rat race trying to get by, your business is going to reflect that mindset. While thinking about your business and personal goals, you should be able to answer these questions clearly:
- Why do you want to succeed?
- What kind of life do you want to create?
- What greater purpose motivates you?
It’s also essential to dream big and surround yourself with people who share the same mindset. If you can’t find them in your immediate network, search for other entrepreneurs you admire and learn from them. If it helps, invite them to connect on LinkedIn.
#2: Make a plan
Many business owners do not detail budgets and monitor the financial health of their businesses. To know how much money you have now and make accurate predictions about the future, you will need a plan and be disciplined with your money.
Some questions to ponder over:
- Does your business have a budget? If so, how closely do you stick to it?
- What are your short-term and long-term priorities and goals?
- Where should you be spending? Where should you be saving?
- When you get off track or circumstances change, where should you take corrective action?
If you’re not so savvy when it comes to financial planning, consider hiring the right person to aid you in this segment. Bringing in an accountant can help your company in creating a budget, managing expenses, and making well-informed financial decisions.
#3: Add more value
If there’s one thing you need to take away from this section, it’s to make your business indispensable to your customers. Instead of demanding more money from your customers for the same amount of work, give some thought about how you can add more value to them.
Questions to think about include:
- How can you increase your skills or services to deliver better results?
- How can you solve a problem and make their lives easier?
When your service becomes absolutely necessary, that’s when you can charge what you deserve.