Our Financial Behaviors and the Impact on our Business
The financial health of your business will determine a lot. It’s not just about how much money you make this year, but what your business does today will impact years to come.
Here’s the Reality- If you don’t have the funds to execute your business plan, not only will it impact your bottom line this year, but likely have a negative impact on your business the following year as well.
Set yourself up for success year over year- Take a look at your monthly operating costs. Aim to start each year with three months worth of operating expenses readily available.
This gives you the ability to hit the ground running and start executing your business plan without wondering how you’re going to pay for it all. This allows us to operate from an abundance mindset instead of scarcity.
Keep in mind, this three month “kickstart” fund should be in addition to your emergency business fund. Just like you have an emergency fund for your personal finances, your business deserves the same.
During your Q1 Business Audit, you should have asked yourself some key questions.
What do I need to do to close my Revenue Gap?
What adjustments can I make to keep my Business Expenses on track?
The more specific and detailed you can be when answering the questions, the better! I suggest writing out three actionable steps you can take to solve each problem. This allows you to create a plan without over tweaking or over complicating.
One of my favorite quotes from the book Atomic Habits by James Clear is “True behavior change is identity change.”
Goal setting is a huge part of the entrepreneurial conversation. We often focus on the outcome and the process, but neglect to focus on the behavior.
Each year as I work with entrepreneurs, I find there is one goal that is consistent for everyone- “ I want to increase my income”.
Here’s the thing- everyone says they want to increase their income.. But not everyone is willing to change the behaviors that will truly get them there.
You might make $250K/year, but if you are spending $200K of it.. You’re only making $50K.
What if instead, you made $250K/year and only spent $50K of it on keeping your business running?
What adjustments do you need to make to make this switch?
It’s extremely difficult to change habits if you don’t adjust the BELIEFS that led to the behavior.
Do you identify as an overspender or someone who isn’t “good with money”?
If so, shifting your business to being financially fit will continue to prove difficult until you switch your beliefs.
You can set goals and create plans, but if you don’t adjust who you are, it will never stick.
Ask yourself-
What is my financial identity now?
What do I want my financial identity to be?
What does this NEW financial identity look like? Describe the types of decisions they make.
We have the power to change our behaviors at any given time. It comes down to commitment not only to the change, but identifying with this new version of ourselves as well.
When you’re ready to change your behavior in order to level up …
I highly suggest you hop on one of our private client coaching calls for FREE! This will give you an opportunity to experience what we do in Burnout to BOSS™ so you can start getting support right away!