I wanted to post updates and new discussions every Saturday but if any of you are busy mom-preneurs like me you know the family is ALL about Saturday (or should I have said, Saturday is all about Family? Oh well, my brain is still on auto pilot! LOL)
NOTE: This group is not a "get rich quick" anything as we all should know that building wealth is a journey. My goal in this group is to provide you practical tips tools and resources that which may not immediately create wealth, truly put you in the path by showing you ways to keep more of the money your business earns. I do own a bookkeeping business and consult with small business owners all the time about many of the things we will be exploring in this group and while I'd LOVE to have you all as my clients one day, I won't be sugar coating any of this with "hey be my client" sleezy marketing. If you do GREAT! If not, that's fine too, I at least want you to have the information needed to help you manage your business on your own (and when it grows by leaps and bounds and you see that you need my services...yes you'll remember a sista LOL) LaShanda sparked a flame to "give back" and I'd like to do my part. I will add though that I do have this same group on my website that yes I'd LOVE you to join there too, I will keep some of the tips on that site only to keep it more controlled as well as make it available to my members and current clients on that site. So from time to time, I will direct you there for some "members only" information.
With that being said, I'm starting us on a path to wealth via our businesses in several "parts". It's in quotations only because I'm not really sure how many parts there will be as that depends on you guys, topics you bring up, ideas you have, etc. There are many parts we can explore to help build a better financial foundation for our business. I'm committed to starting with the very very basic and as we progress along as a group, we will start to explore more complex areas that I've come to know through my 12 years experience as a corporate accountant so I hope you stay and share throughout the journey!
ARE YOU READY?
PART 1: Where is the Money going?
Before we can build wealth using our businesses we first need to know where we have been! One of the first things I do with my clients before we begin working on new money making projects (sorry I'm not the marketing/sales person in the group) I want to see WHERE THE MONEY IS and it's almost always met with hesitation as to be honest folks just don't like to look under the rug. Whether you start this week or bookmark this for a later date to review, I want each of you to take 2 hours this week and NOT SALE, don't work on marketing, don't network, don't follow-up with clients, NOTHING regarding adding to your business! For just 2 whole hours! I know, I know I gotta make money! But again, we are talking about building wealth and getting off the Treadmill!!! (remember the first discussion?) It's ok to turn the treadmill off for 2 hours a week to check the screws, motor or just give your legs a chance to recuperate.
What will I do for these 2 hours? I want you to...
BUILDING WEALTH WITH OUR BUSINESS TIP #1 - Build a sound budget, credit and tax management mindset by simply creating a budget and sticking to it. I know it's not as easy as it sounds but it is and I've even made it easier by attaching a template for you so...no more excuses!
Just like our personal lives, managing our business finances is exactly the same and it's very easy to fall into a pit of max out credit cards, mountains of overdraft fees or not paying your vendors (ontime or period). Hey it happens to almost EVERY business so if this is you, it doesn't necessarily mean you are horrible with money or a bad business woman, it means you are a business owner with a llimited start-up capital and often-times wearing 1000 hats, stuff happens! Creating and maintaining a budget though is critical to at least KNOW when these pits are coming and giving you a chance to go back and revv up your sales to bring in some extra cash or plan to pay 1 bank fee versus 5! So instead of getting on a treadmill chasing the next dollar, you lace up the running shoes (your budget) go outside for a run with a purpose.
Step 1: Using this simple spreadsheet, create a cash flow budget (see attached). First start with your expenses, include personal as well if you are a sole proprietorship. I say start with this first as it's important to know what your obligations are for the month and see where you can actually trim some fat if needed.
Step 2: Are you behind on some bills? No problem, when you list your obligations, don't list in general figures, pull out those bills, credit card statements, etc and put in EXACTLY what is due and when it's due.
Step 3: Now that you see all the bills and financial obligations you have it's time to start mapping out how when and how they will be paid.
We 're going to stop here for this week. I attached a super duper simple spreadsheet to take you through Steps 1 and 2 . This isn't glamorous I know but it's important to know. Before we can start talking Tax deductions and other strategies, we first need to hope off the treadmill and take a look to see what we're face with. Later this week or perhaps in next weeks discussion we'll continue through the steps. I'll leave this discussion with a question for all of us.
What are your thoughts, fears, regarding your money and budgeting? Do you currently take 1-2 hours or so to do steps 1 &2? Do you have a tool you can share? What are your strategies for creating a budget? Remember, we'll be continuing this discussion on starting a budget next week but feel free to Share in the meantime!