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.