You started this business of yours to make more money — you want to be profitable. Well, that and probably some other important things, like being able to work when you want, where you want, do some good for the world…you get the idea.
What you didn’t plan on doing was constantly hustling just to feel like you were losing money. So why, no matter what you do, are you always in the red each month? Why are you constantly dipping into your savings and putting things on a credit card? Why isn’t your business making any money?
It’s because you don’t have sufficient money management skills.
Don’t take that too harshly — this is coming from someone who was almost $80K in credit card debt. Yeah. The big leagues. I sucked at managing my money, too.
I know firsthand what poor money management can do to you, and I wouldn’t wish that kind of stress on anyone. I say all of this to give you the tough love you need, because like you, I had a business I was desperate to grow but I couldn’t do it until I got my money-ish in order.
The good news is that if I could get out of that gigantic debt mountain, you can learn how to make the most of your money and do even better things with it.
Because money management isn’t a talent. It’s a skill that you can grow. But you can’t do any of that until you first pinpoint the problem.
This is the most obvious on today’s list, but it’s the number one reason why your business isn’t making any money.
Several years ago, when I was right in the thick of all that debt, it was because I thought I needed every little thing I saw — new courses, new tools, new software, etc.
I would justify my bad habits by blaming it on the biz…but in reality, there are very few things your business actually needs. What you need most, at the end of the day, is to sell! Everything else is just icing on the cake.
I want to sidebar here for a sec because one of the biggest reasons you’re overspending in your business is that you’re trying to justify purchases you don’t need. I know, duh, but reality check — that includes courses too!
In all my years as a business owner, I never saw the 94-course purchases I made do anything as they collected dust. If you want those resources to be helpful, you need to actually use them.
Buying another course isn’t going to solve your problems, no matter how enticing it may be. Your success with them depends on how much you participate and how much you’re open to changing your mindset.
Next time you’re tempted to digitally swipe your card and get a new course (this goes for masterminds and low-ticket offers too), go finish one you already have.
In life in general, one of the biggest challenges people have with becoming financially healthy is not preparing for emergencies. They don’t think things will happen to them or just straight up forget to set money aside.
But this is so harmful to your bank account because if something does happen, unless you’re sitting on a mountain of cash, you’re SOL. You’re going to have to dip into savings or worse, charge it to a card.
This is exactly why financial forecasting is so important. It’s basically a business’s budget that helps you see your projected costs each month, what expenses might be backlogged, and any future expenses (like recurring annual subscriptions) that need to be earmarked.
Knowing all this will help you realistically see what you can set aside in savings each and every (please don’t skip it) month. Because not doing it is kind of like throwing your hard-earned money out the window.
Okay, I lied. This one is the most obvious on today’s list. No sales mean no money right?
A lack of sales can mean several things but again, if you aren’t prepared for a slow month (by saving and setting aside), you’re going to need to tap into your reserves. And where a lot of people run into problems is assuming selling comes in this order:
Create the product ➡ put the product up for sale ➡ cross your fingers you make $$ ➡ bask in the rewards.
No! Don’t do this. Flying by the seat of your pants or going off intuition is not a sales strategy. It may work once or twice, but it won’t work forever.
Forgoing goal setting means you don’t know how hard to push yourself. If you don’t have a clear revenue goal from your offer, you’re leaving your sales up to chance, and that has the potential to go south pretty fast.
Bookkeeping is definitely not the sexy stuff. It’s a pain in the butt, it’s time-consuming, and it’s not fun. But you NEED it.
Because not tracking those expenses and keeping those receipts in line won’t only blindside you during tax season, but will throw you for a loop when you try to calculate if your business is truly profitable.
You know what they say about assuming…
Think you’re “bad at math?” The good news is that tons of programs, software, and online tools that can help you out. But if this is something that is constantly a thorn in your side, you may want to consider outsourcing.
You’re not going to become someone who’s great with their money overnight. Becoming financially healthy in your small biz takes lots of time, lots of practice, and consistent effort. You may not see the results right away, but over time, you’ll be able to look back and see a change.
If you want to get started on the right foot though, you should probably set some realistic expectations on what your business might actually cost you. Take a look at the video below ‚ — I’m showing you what it really costs to run a small business: contractors, software, paying yourself…the whole shebang.