Firstly, a massive congratulations – you’ve done the hard yards and now have an established business! You felt grown when you hit that magical ‘register for GST’ point, and now it’s just smooth sailing and cash flow calm. Right?
Umm, maybe not so much? Especially in times of lockdowns – are you with me here!
If you resonate with this, I am here to straight up tell you – there is nothing wrong with YOU. Stop beating yourself up and telling yourself the BS story that you aren’t good with money.
Instead, let’s dig deeper into why you have buried your head in the sand. And more importantly, how to turn that around.
Notice your self-talk
Listen to the story you make up in your head about money and your current financial position. This matters so much because it will determine whether you are looking through the lens of ‘scarcity’ or ‘abundance’. (Hot tip – Burying your head in the sand falls on the side of scarcity.) Remember – nothing ever great comes from a scarcity mindset! Once you are aware of your self-talk, you can shift your focus and turn it around.
Know your figures
Even if you have a bookkeeper or accountant (well done by the way for outsourcing!) you still need to be reviewing your numbers, at a minimum each month, preferably weekly. How are you tracking towards your income goal? What percentage of your income is profit? And most importantly, do you have enough tucked away in an ‘oh s*it’ fund (minimum of 3 months worth of expenses, including your own wage)?
Review your expenses
Ever heard the golden advice to cancel the gym membership that you never use? Well, there are plenty of expenses the equivalent of ‘gym memberships’ in business too. Do an audit of your monthly subscriptions and ask yourself if they are still necessary. Do you have any double-ups or even payments you’re still making that you forgot you even had?
Work out your cash flow projection
We’re just a matter of a few weeks into a new financial year and now is a great time to either review (or start from scratch) your cash flow forecast for the next 3 months (step 2 will have helped you know when your expenses are due). If you’d rather pick your eyeballs out with toothpicks than set up an excel spreadsheet, consider outsourcing this bit to your bookkeeper, accountant or get in touch with me at Business Together.
It’s time to put your big girl pants on, put your head up out of the sand, do the things that will move you away from cash flow chaos into feeling like the Queen of your biz finances.