Now that you have set your goals and are planning out your days, weeks, months and years to achieve those goals, it is time you become a master of your money. Money mastery is not necessarily about making a lot of money. It’s about knowing where your cash flow comes from and where it’s going.
In the end, your financials will tell the story of your business, just like reading a novel…. what sort of novel would yours be? A drama? A comedy? A horror???
To discover your level of Money Mastery, consider these questions:
- Do you have a monthly profit and loss statement that you review? Is it understandable?
- Do you have a weekly cash flow forecast that looks at least 3 months ahead?
- Is your balance sheet up to date?
- Do you know what your breakeven point is each month, week or day?
- Is your cash gap under control?
- Do you issue invoices quickly? And follow them up quickly?
If you answered anything other than yes to any one of those questions, then you don’t know your money well enough. It is easy to form bad money habits early on in business, when there isn’t much money to deal with. Business owners often learn that managing cash flow and income only gets harder as the business grows…and, unfortunately, they often learn it the hard way – when they have a money disaster! But larger cash flow is not the cause of your money problems. It is purely due to the way you approach your finances.
Many business owners are mistakenly under the belief that more money means more headaches, but they’re the business owners who haven’t set the right foundations in place or mastered their money activity early on. But it’s simple!
It personally takes me a total of 10 minutes per Monday morning to update my weekly cash flow forecast. This means that I only invest 10 minutes per week to update and understand what my cash flow in the business will look like for the next 3 months, allowing me to identify possible issues and to make the most of my cash balances too! Do you have a spare 10 minutes to spend a week?
According to American Psychological Association, more than 70% of Americans consider themselves financially stressed.
Join the minority and become a Master of your Money by booking a FREE 1-on-1 consultation with one of our very own Business Coaches who have helped several businesses gain complete control of the money flowing in and out of their business.
My next blog will be posted in 2 weeks, and will teach you the secrets to how to get raving fans, but till then, here is a thought to take with you…
…“If you expect your money to take care of you, you must take care of your money.”