The numbers matter
So often I hear, I am no good at numbers, they are just too hard. I have seen friends lose their businesses or lose out financially because they didn't pay attention to the numbers. I have also seen people do a lot of hard work, thinking if they just keeping putting in the hours then the money will take care of itself. Generally though, the mentality is, "I'm no good at ... money, taxes, numbers, etc."
This mindset only serves you to stay away from things you are no good at.
If you are going to run your own business or stay in control of your families financial situation for the betterment of them. Then you need to get across your money mindsets.
It is not good enough to just let someone else take care of that!
Financial acumen can be learnt...if you are in the world of starting or running your own business then the money side of it has to be upfront. Set up the business bank account, work out how much you need to make per year and get started. Because you are going to be investing money and time for a pay out later on, when it stops being a job and starts making a financial return on it's own. That is when you have a business.
If you can't work out if it is worth it...then work out if it is not worth it for you to have a job, ie. childcare cost is too high, I'd rather spend my time with my family, etc. If the answer is I cannot have a job and some of these other things are a priority then adjust your income expectations from the business until they are achievable.
But most of all work out how you are going to get financially savvy, because if you are prioritising some of that other stuff, then the little that you make needs to be organised frugally.
Secondly get financially confident..., understand the language and be able to talk about it
Third ensure that the business you start is in something you love doing, you will have to see it through. Most businesses fail because they only thought about being small, then they grow and fail because the structures weren't in place for growth. If you are only going to be small, then say that from the start and price accordingly. Ie... Limited editions and don't compete with the large retailers/manufacturers. for example, don't employ people if you want to stay small, contract them to do the parts you don't want to do, yes you pay a premium but you don't expose yourself to risk.
Don't think small, - invest into professional services like logos and branding, they are important. And those are the people who will be able to interpret your brand better than you can to the world, which gives you a place to start from.
Find other friends who have been successful in business, not just worked for a company. Friends are great in this area as they understand the things you are going through but aren't about charging you money for their ear...nor do they have an alternative agenda.
Give more than you get, always focus on how you can add value, not on how much you will get...you will find that receiving will be easy when you have this mindset. Especially when your currency is time not money.
When life is hard and you don't have a brave face at the moment, take a mental health day. Your the boss you don't have to answer to anyone else. But you do have to answer to your clients and they are only interested in their world being better, not yours. So take time out. They are interested in where they invested their money and whether or not there is a return, they did not send you money or pay for your services because they felt sorry for you.
Try not to reach burn out before you do something, always keep your cup full. Ie. Factor in self care as a part of your business model, everyone will be better for it.
Tips for deciding whether or not you should start a business or get a job
- What are your priorities at the moment? - Kids, Mortgage, Age, Health,
- How much time do you have to invest in this business?
- How much money do you have to invest in this business?
- What support have you got to keep going, when the going get's tough? - Family, Friends, Partner, or Paid Support
- What skills do you have? Are there any skill gaps that are non negotiable in business? -.... ie. The skill of running a business, marketing, sales, financial, industry knowledge in the field of the business,
Then just do it anyway!
Tips for keeping going in business
- Find like minded friends
- Self Care
- Take mental health days when the shit hits the fan. (Put fan behind closed doors and turn it on full!)
Book an appointment with me!