“It’s not about the money, money, money”
Well, in the world of entrepreneurs, if we don’t make money, we have a hobby. I don’t know about you, but I don’t want just a hobby, I want to have a THRIVING business! One of the best ways to get started in this pursuit is to make sure you know what the money sitch in your business looks like and how to change it if you aren’t where you want to be.
Do you know what your business financial picture really looks like? Most of us go into business with the idea that we will make money from the very thing that we are passionate about. However, not every entrepreneur sets a business up for financial success and on top of that, not everyone knows HOW to bring the money in.
The first step to bringing money in is setting up your financial systems to create a space for all of the money that you plan on making.
Here are 5 basic steps to creating a solid financial foundation for your business:
- Set up the best business legal entity that is matched to your business goals and objectives
- Get insurance that will protect your business and family from a potential lawsuit
- Create a system for managing your expenses and income ( Set reminders to pay bills, taxes, etc)
- Hire a bookkeeper or accountant that matches your values
- Set regular meetings with your money team to go over the financial status of the business
Once you have set up this basic financial management system for your business, you will want to look at how much money is coming into your business and how much is going out every month. Assess what expenses are bringing in a good return on investment and increase those. For example, if you are spending a small amount on social marketing, but you are getting the majority of your clients there, you may want to increase spending on social while decreasing spending on other marketing efforts that may not be bringing in clients or revenue.
Every business owner has a different idea about where money is best spent, but you will want to spend a good amount of time testing, tracking and tweaking your revenue model and biz systems so that your business maintains forward momentum. Creating financial systems and keeping your business current by paying bills and taxes will help you to stay calm and relaxed while you enjoy being an entrepreneur. When you have your finger on the pulse of your business, it makes it much easier to gauge where you are in terms of reaching goals and streamlining your efforts.
Once you have your financial systems set up, you can focus on client attraction, client engagement, client services and client loyalty systems that consistently bring a stream of customers to your business and drive sales through the roof. Remember, people buy things that they want, not necessarily what they need. Your marketing efforts need to address their pain points and your product or service needs to clearly provide the solution that will ease their pain. Financial success comes not just from creating an amazing product, but from striking a cord with your audience about how your offering meets their needs (and wants) and will make their life better.
Stay tuned for more posts on these systems and if you have any questions or thoughts, please leave them in the comments below or tweet @MamaBritt. And if you have any friends who would benefit from reading this post, please share on social media by using the buttons below. Thank you!