You start your business in a haze of excitement and big ideas. Without any business chaos.
You learn on the job.
You grow with your business.
You hit a point, where you realise that your business might have grown a bit faster than you were prepared for.
Your invoices are all over the place. You don’t know what your bookkeeper is doing. You’re sticking your head in the sand when it comes to taxes, don’t know what’s profit, what’s loss and if someone asked how your business was going you wouldn’t have clue.
You’re doing your best, but you don’t know what you don’t know.
You’ve got a business that’s in chaos.
And a business in chaos isn’t sustainable, profitable or operational for very long.
You need to move your business out of chaos and into control.
The way to do that?
Know your numbers
Bella found herself in this exact situation.
She knew how to show up and run the operations of her business, but her business was in absolute chaos. Completely out of control.
She wasn’t quite sure where to turn.
She didn’t know what she didn’t know.
The biggest unknown?Her numbers.
She needed to know her numbers in order to get to a state of control and flow.
Although she had the skills and knowledge to do what she needed to do, she wasn’t accessing the financial resources that were available to her.
The resources that would allow her to stay on top of everything.
Because her business was in chaos, she was in the dark.
She came to me asking for help. The chaos kept building and she had no idea what to address first.
She was slowly getting scared of the dark.
Bella was too afraid to look at the numbers because she was scared of going broke.
Ignoring the nuances of your financial situation and leaving it all in the hands of someone else isn’t saving your business.
With Bella, the first thing we had to do was tackle the head in the sand financial approach.
This involved understanding how to manage cash flow and being aware of all debtors and creditors.
This knowledge is the first step towards stronger and better financial decisions.
Drill down and dig deep into those scary things – the numbers
Understand how they are created and what they mean. Take a good long hard look at the “professionals” you have supporting you.
Are they even doing a good job?
In Bella’s case –NO. they were not. So…..
Ready? Set? GO!
Sounds like a lot of change in one go? Yes?
Well it was those moves that have this business headed in the right direction.
It took a lot of courage for Bella to accept that this change had to happen, when she finally realised that it was positive change – she started to move out of Chaos to a level of Control in a matter of months
You can’t fight the fear of going broke by ignoring problems.
Sometimes that fear will never go away.
Improve your understanding of your business and the role each person plays, only then is success possible.
The numbers are Number One priority in every business (pardon the pun) The fact is that they are what makes a business good or great.
Knowing them and more importantly understanding them, gives you the power.
That power can then be used to manipulate them, change them, make them better, use them as a tool to understand what’s next?
When can I scale? When do I employ the next team member?
When can I buy the next investment property? Or better still have that long awaited holiday
Take control of your business.
Are you burying your head in the sand when it comes to business finances?
Are you using lack of knowledge as an excuse to keep yourself in the dark for fear of going broke?
Do you have the right support to help you truly understand your numbers?
Do you have the courage to step forward and finally take control. Make those changes. Loyalty is a wonderful trait however if that loyalty to those “professionals” is keeping you in the dark then it’s time to remove the emotion and take charge.
Read my previous blog here