SHOW YOURSELF THE MONEY
THE NUMBER ONE
PITFALL for far too many small business owners is that they do not pay enough
attention to the financial side of their business. They seem to feel that as
long as there is cash in their checking account, they are doing well, and they
don't look beyond that. These are the owners who are usually surprised when
they go to the bank to get financing, or to set up a line of credit, and find
out that they are not doing as well as they thought. Or particularly awful,
they get surprised at the end of the year when they must scramble to come up
with the money to pay their taxes.
A lack of attention
to financial details can encourage the not-so-honest employee to take advantage
of their employer and find ways to steal money or other assets from the
company.
Finally, it is very
difficult to position a company as a competitor in the marketplace if the owner
does not have a good feel for the pricing structure needed to stay competitive,
yet still cover their costs and generate a good profitable return.
For all these reasons
all members of Richard Borough’s Master-Mind Alliance® are
constantly being asked to talk about how the money is going. How much is in the
bank? How much is in receivables? How much is owed and to whom? How’s the plan
to reduce the debt coming along? How much cash flow is projected? Is it time to
adjust prices, either raise them or lower them? And other questions of this
nature.
We see helping our
members keep a weather eye on the MONEY as a big part of our focus, because
when the money’s right, lots of good things are possible.