Let’s talk about a topic that many people tend to shy away from – finances. I know, I know, it sounds boring and complicated, but trust me, it’s not as bad as you might think. In fact, it’s essential to the success of your business.
Specifically, let’s talk about managing your money if you’re a small business owner or entrepreneur. It can be tough to know where to start, but luckily there are experts out there who can help. One of those experts is Nina Israel, a financial educator and coach who has been helping small business owners for over 25 years.
Nina believes that money doesn’t have to be hard, and that anyone who tells you it is might just be trying to take advantage of you. So, let’s break it down and make it easy.
First things first, it’s important to have a financial process in place. This means having steps that you follow at different times to help you maintain control over your money. This might include setting goals for where you want to be financially in the short and long term, managing your cash flow (including using things like the Profit First method), and understanding your financial reports.
Speaking of financial reports, there are three key ones you should understand: the profit and loss statement, the balance sheet, and the cash flow statement. These reports can help you get a better idea of how your business is doing financially, and can also help you identify areas where you might be able to save or make more money.
Another important part of the financial process is understanding your key performance indicators (KPIs). These are the things that can help you make decisions about what to do next in your business, and can help you identify areas where you might need to make changes. Finally, budgeting and forecasting can help you plan for the future and make sure you’re on track to meet your goals.
Now, all of this might sound like a lot to handle on your own. And the truth is, it can be. That’s why it’s important to consider bringing in a professional to help you manage your finances. Whether that’s a bookkeeper, a CPA, or a financial coach like Nina, having someone on your side who understands the ins and outs of money management can make a big difference.
At the end of the day, managing your money as a small business owner or entrepreneur is all about being proactive, not reactive. By having a financial process in place and understanding your numbers, you can make informed decisions about your business and feel more confident about your financial future.
So, don’t be afraid to dive in and start learning! Whether you’re just starting out or you’ve been in business for years, there’s always more to discover about managing your finances. And remember, you don’t have to do it alone. With the right tools and support, you can take control of your money and achieve your business goals.