Why did you originally go into business? We all have different reasons for starting our business. Some wanted to be their own boss. Others believed passionately in their product or service. Some of us just wanted a better lifestyle.
Why did you start your business?
I started Beyond the Numbers to help small business owners who were making less than the average wage. Working as a tax accountant I saw that at least 80% of small business owners were working incredibly hard but earning less than they would if they were in a job. While there is nothing wrong with my motivation to start my business it did lead me to make the biggest mistake a small business came make.
The biggest mistake any small business can make is to fail to accept they are running a business.
Many people that I speak with are passionate about their business and how their products can help others. However, many fail to accept either consciously or subconsciously they are running a business as well trying to keeping customers happy. I made the same mistake that I was advising against to my clients. I can’t explain why but I thought these rules didn’t apply to me.
The Two Critical Ingredients for a Successful Business
If you don’t accept that you are running a business you will only ever focus on one of the two critical ingredients of a successful business. The critical ingredients in any successful business are customers and cash flow. Many businesses focus on satisfying their customer but either neglect or don’t know how to focus on satisfying their cash flow. Without cash flow you will never be able to accomplish the reasons why you started your business.
The Critical Numbers
One of the reasons why people don’t focus on cash flow is because they fear or don’t want to know anything about the numbers. They wish they could just focus on doing what they love best and completely ignore the numbers. I completely understand, I feel the same way about marketing and networking. However, you will never have maximum control of your business if you don’t understand its critical numbers.
To accept that you are running a business does not mean you abandon the reasons or motivations for starting your business. Or that you must make all decisions purely based on a financial basis. Quite to the contrary, focusing on running a business by satisfying the cash flow should enhance your ability to achieve your goals. A healthy cash flow reduces stress and creates more opportunities to help your customers and achieve your goals.
If you love what you do but haven’t been focusing on the critical numbers then give me a call on 0434 972438 or contact me for an informal chat how I can help you.Tags: Cash Flow Profit