In talking with business owners over the years, there are some common excuses or limiting beliefs they have when it comes to finances. We know that limiting beliefs can hinder anyone from success. You can’t fight these beliefs until you know what they are. What are these beliefs?
Running a business does not require complicated math. You don’t know need to know Calculus, Geometry, or even Algebra. You need to know simple math such as addition, subtraction, multiplication, and maybe some division. The math does not get much harder than what you probably learned in 3rd or 4th grade. You can be good at anything that is important to you. We are all continually learning. There are successful people who don’t have a high school diploma and do very well in business. There are also people with expensive graduate educations who are in debt and close to financial disaster.
You can do the math that is required to run a business. You just need a process and a little guidance.
I was recently reading a book that was written in 1952. It claimed that people are busier and more stressed than ever and don’t have time to focus and enjoy life. Apparently, this has been a problem for a while. Time and productivity and closely related. Time can be multiplied. There are tons of books written on productivity. We all make time for what is important to us.
You have heard of hiring out what you don’t want to do so you can focus on what you like to do. I don’t agree with this entirely. When it comes to your business finances, you really need to understand the basics and what numbers will produce success. I am not saying that you have to do your own bookkeeping, but you do need to know how to take the reports you get in order to motivate yourself toward success. You need to ask the right questions. Keep your bookkeeper, CPA, or financial consultant honest. Have them explain what is happening and educate you on what to look for.
I think people tend to over complicate accounting, and even some Accountants over complicate it. If you are running a small business with a few products and services, it can be much easier than you think. Lack of organization and keeping your finances up-to-date are what make it hard. Think about what would happen if you didn’t mow the lawn all summer. Your yard would be a disaster, and it would be hard to make it look nice. Even a 13-year-old can mow the lawn each week. I am not saying a 13-year-old should run your business, but you get the point.
Revenue and sales are very important and are the first steps of the business cycle. But Billing, Collections, Payroll, Expense Management, and Customer Services are also crucial parts of the business cycle. Sometimes billing someone or reaching out to someone to ask if they received an invoice can spark another discussion. Business is all about contacts and touch points. We provide value in the many ways we make life easier for our clients and in talking with them.
So expand your beliefs about finances for your business. You have what it takes to do this, so don’t buy into the idea that it all needs to be outsourced. Maybe some of it will, eventually. Depending on the size of your organization, it will vary. No matter what, you need to have the education and understanding to build financial success.