Did YOU know about it when you started your business?
The No.1 rule for financial success for small business owners.
For many business owners, starting our business is about freedom, the potential for unlimited income, creating a lifestyle we choose and escaping the rate race.
We want to follow our passion, live with purpose and make a difference by tapping into our gifts and zone of genius.
But all too often, a little further down the track, new business owners suffer a rude awakening on the subject of money. And it can become a major source of stress!
And it’s all because people don’t honour this ONE rule for financial success… that is ESPECIALLY important for small business owners.
So let’s talk about:
- what this rule is and
- give you some practical ideas and tips to help you honor it
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Because we want your business to be a financial success.
And we want YOU to avoid unnecessary money stress.
Of course, along with money stress come the mindset wobbles. Because you might start thinking your business isn’t doing well, that you’re not cut out for it, that it’s not meant to be. And that can cause you to want to give up – when you absolutely don’t need to!
It just takes a few little tweaks to help you honor this very important rule.
So what is this rule?
It’s that CASH IS KING.
When you’re in business, your cash flow needs to be protected above all else.
And if you don’t have the right systems in place, it’s way too easy to go off track and get yourself into a pickle where your business is struggling to pay its bills – or to pay you!
There’s a bunch of episodes where I cover some key concepts to help your business succeed. You’ll find those links below.
But let’s look at two that especially help to protect your cashflow so that cash can continue to be king:
The first is making a deal with yourself to take a long term view.
This comes in a couple of different forms.
From a mindset point of view, people will often convince themselves their business isn’t doing well on the basis of just one or two months’ trading. They don’t look at the bigger picture.
When I started my finance business, I made an agreement with myself. I promised myself to ONLY ever judge my business doing based on the last six months’ average.
Now let’s translate that into PRACTICAL ways to protect your cash flow.
This is about also looking FORWARD. Knowing where you plan to spend money in the future and having a plan for that.
(ie… not just spending more money because you just had a great month…. yes, I see you!)
Having a great money system to smooth your cash flow by using your actual income to create a consistent source of funds for expenses, growth and expansion, alongside some forward planning is the magic combo.
A great money system, such as the Magnetic Money™️ System will help you do that. Want my help to set yours up? Check out the Bootcamp here.
OK, let’s take a break and check in.
Is this ringing some bells for you?
Are you suddenly realising that you’ve been taking a short term view?
Have you been panicking way too soon?
Or not planning properly and spending too quickly on all the wrong things?
Let me know in the comments below!
Now, the second thing you want to do is get really clear on STARTUP CAPITAL.
Most small business owners and entrepreneurs invest personal funds to start our business.
But what are the rules around that?
Are you investing a lump sum designed to keep the business going for a certain period of time? Are you drip feeding income from savings, a job or maybe a partner’s income into the business? How long will that go on for? Where will you draw the line? And what’s the plan to help make it happen?
Being really clear on those things upfront avoids you getting into a situation where you keep putting more and more personal money into the business… and feel awful about it.
Because when you’ve not been clear upfront, you’ll get emotional. You’ll feel the pressure. And that kind of energy won’t help your business succeed.
You may also let it drag on & on. Because you have no idea where to draw the line… and no plan to ensure your business will take over and pay its own way by the deadline.
Being clear on the rules around start-up capital helps you:
a – avoid panicking way too soon
b – make a plan so your business can stand on its own feet by the due date
By being clear, you give yourself breathing space to focus on getting the business up and running.
And by knowing what the boundaries are, you can develop a business plan and strategy that works.
This clarity allows you to protect your cash flow and use it wisely.
In the Magnetic Money™️ System Bootcamp, we show you how to smooth your cash flow and spend money wisely so you don’t run into a cash flow crisis.
If you need to get your money system then check out the Magnetic Money™️ System Bootcamp. In Bootcamp, I take you through my entire M-A-G-N-E-T-I-C process to help you sort your business and your personal finances.
The best part? Once it’s set up, it only takes 5 minutes a week to manage your money!
I love that!!
If you want to start by dipping your toe in the water and organizing your banking, be sure to jump on my free workshop called ‘Organize and Tidy Your Banking’. The link is below.
OK, tell me – Did you enjoy this episode?
What’s your biggest take-away? Let me know in the comments!
See you in the next episode – or in the Magnetic Money™️ System Bootcamp 😊
xx Miriam
Ready to go deeper?
FREE LIVE WORKSHOP
Organize & Tidy Your Banking
‘Spark the joy’ of becoming magnetic – for women entrepreneurs.
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