EASY BUSINESS FINANCES FOR ENTREPRENEURS
BUSINESS FINANCES FOR ENTREPRENEURS MADE EASY
“Numbers sucks!” is a statement I hear all too often.
The thing is, there are only a handful of numbers you really need to know in your business.
So, let me illuminate your world and abolish the numbers suck mentality so you can join me in the world of numbers rock and watch them amplify your business results!
Where does your revenue come from
I know this seems like common sense, but I can’t even begin to tell you how often this idea is not common practice.
If you want to stay in business you need earnings, revenue, profit, income, dolla dolla bills!
Understanding where those earnings come from is essential.
Often entrepreneurs are flying by the seat of their pants, creating services, products, and courses for a niche on the fly skipping from one idea to the next.
The problem with this is you can never really define where your revenue is coming from, what’s working, what isn’t, and how to create scalability within your business.
Nothing creates more inconsistency of income quite like jumping from one idea to the next, never solidifying a home run offering, service, or revenue generating product.
Woah, woah, slow your roll.
Not THAT b-word.
I am talking budgets and cash flow, friend.
A few areas to that you should DEFINITELY be paying attention to include:
Total Revenue—What your business brings in monetarily.
Taxes—Don’t delay setting this aside, you don’t want to steal from the government.
Operating Expenses/Budgets—What it costs to run your business. This includes annual expenses (things you pay for 1x per year), subscriptions (often overlooked and one of the first things that can take down your businesses without realizing it), contract services, employees, I think you get the picture here.
Owner’s Pay—This is what you get paid. Create a schedule to pay yourself, just like you would a corporate job. I personally like biweekly paychecks and have dates that this gets pulled automatically from my biz bank account.
Cash Reserves—All businesses have lean times and busy times. During the lean times, it is wise to have a cash reserve on hand to create consistency in your paycheck AND to be able to continue to pay your operating expenses. Depending on the risk level of your industry will determine how much of a reserve to have on hand. More risk equals more money on hand in cash reserves.
These are the minimum cash flow accounts I recommend having on hand for the overall success/health of your business.
Please consult a CPA (certified personal accountant) or financial advisor for more detailed information.
It always, always, always comes down to the goals you are setting for yourself.
Having a vision of what you want your financial future to look like gives you something tangible to hang on to when it comes time to make tough decisions between wants and needs.
It also gives you something to wake up and be inspired by.
Goals give you measurability. They allow you to see where you have come from to determine a clear picture of where it is you want to go.
When it comes to your personal and business financials, you should always ask yourself: What does financial success look like for me?
Create a vision board, review it daily. Have a clear understanding of who it is you need to be to create your vision of financial success.
You see friend, the numbers aren’t complicated. What you focus on grows.
Why not put a little focus on your financial future!
Need a little help? Click here to register for Stephanie’s free masterclass on laying out your finances for the year.
Are your numbers where you need them to be?
About the author
Stephanie Klinger is a marketing and money coach, as well as the founder of The Rebel Boss. It’s her mission to teach entrepreneurs how to achieve financial freedom now by living their dreams. Follow Stephanie on social media at @_rebelboss_.