It's not uncommon to hear people say - "I'm not really good with money". If you have been that person and used this expression as a very easy way out of failing to manage your finances well; it's probably time to change. Not only is this a phrase, but an attitude as well that eventually results in unproductivity and stops you from gearing up and taking your efforts to the next level.
The one fact that a number of people tend to ignore is that money is what keeps their business going. It helps boost your marketing efforts as well as all your product initiatives and helps pay for the entire infrastructure on your business property; aside from this, it's also required to pay wages to your employees and supports your lifestyle as well.
If you look at it closely, there isn’t a single avenue of your business that finances don't touch in some way or the other. For instance, when it comes to customer service, you may be able to cut costs by restricting it only to phone calls, scripts and emails; but does that help create an amazing customer experience and does it wow your customers and help you retain them?
Improve Your Understanding of Money
When you think about improving your understanding of money, it's a lot about delving a little deeper and seeing the actual implications and impacts of how money fuels every aspect of your business. This can be quite a challenge if you are a person who doesn't focus on the financials of your business. There are times when business folks are driven by other things like the scope of the legacy they are creating, or they prefer to look at how they can positively impact their community etc.
Regardless of what the other drivers are, money has a very important role to play in the workings of your business. This is why it's important to focus on the financial aspect of your business. The different things you can do are:
- It's always the money-savvy people that end up running the most successful businesses. You need to be able to read and interpret your financial statements as that makes you better equipped to deal with various challenges that surface along the way.
- When you keep stating that you aren't a money person, that doesn't reduce your anxiety; in fact, it increases your stress levels. When you aren't on top of your financial situation, it creates a fear in your mind about it. You will find yourself continuously worrying about whether you have sufficient cash to cover all your expenses for the month.This also means you defocus from things such as product development and marketing which actually help you take your business one step further. On the other hand, when you manage your finances in a better way, it gives you peace of mind and you are able to focus on the other important aspects of your business.
- When you have a good grasp of your financial performance and how it impacts different aspects of your business, you will find that you automatically start making smarter business decisions.
The good news is that no matter how long you have been ignoring your finances, it's never too late. With a little bit of discipline and a whole lot of consistency, you can alter your relationship with money and you will see that the results are quick to follow.
About the Author
Ben Fewtrell is a sought-after Business Coach, Keynote Speaker and trainer who has featured in Virgin’s Inflight Magazine and Entertainment Portal, SKY Business and “Secrets of Top Business Builders Exposed”. He is also the host of the popular Business Brain Food Podcast where he interviews leading experts on anything and everything business.