There are a lot of different coaches out there. A sports coach, supporting athletic teams to bettering their game and winning championships. A personal coach, to guide you in creating a life you dream about. A business coach, to help you develop a strategy to keep your business growing.
Once your business is running and you’ve started bringing in regular revenue, have you considered the benefits of a profit coach?
No matter what time of year it is, you can make it your best year yet. For many small business owners in the health and wellness space, that means bringing in more clients, developing new programs, and increasing revenue.
Yes, revenue is important, but not at the expense of prioritizing the things that can make that happen. And what can make that happen is you, your network, and the systems you have in place to simplify your business and your life.
Have you set big, lofty financial goals for 2023? And if so, how did you come up with those numbers?
Setting financial goals is incredibly helpful so you have something to strive for, but setting the right goals is vital. If they’re not realistic, you’re bound to feel frustrated mid-year, throw up your hands and give up.
Let’s avoid that by setting your goals with intention and research. Answer each of these questions and write down any numbers and calculations so you have them handy.
The surest way to ensure you have the cash you need for the expenses in your business is by implementing Profit First. It creates the guardrails you need to stop spending what’s in your bank account and start holding some aside for things like owner’s pay, taxes, operating expenses, payroll, and future large expenses.
When you first start using the Profit First system, you set up your bank accounts and complete an Instant Assessment of your business to determine what percentages of your revenue you will allocate to the various accounts. (Find out more about how to complete the Instant Assessment here.)
One of the best things about the end of the year is the fresh start of a new year we’re about to embark upon. There are so many possibilities! As a CEO, it’s your job to navigate what possibilities you’ll take on, what you’ll let go of, and what your plan for the future will be.
Taking some time away from the day-to-day running of your business is important so you can focus on next steps. And your year-end planning session might look a little different than what you do at the end of each quarter.
Most business owners start their business because they’re seeking out a kind of freedom, either time or financial or even the autonomy to be able to do business the way they want. I admit that all of these things make sense to me and I’m on board with them all.
As the business grows and CEOs start to see the financial freedom they want, it’s common to feel a nudge to give back and use your money to do some good. Business is easier for some, allowing growth because of connections or privileges not everyone enjoys. Or maybe you struggled and you want to help others who may come from a situation similar to yours.
As a business owner, money is likely on your mind a lot. Is there enough of it? How should I spend it? Is it safe to spend? Will there be enough to buy the equipment I need? Will there be enough to hire someone? What happens if I run out?
So many of these questions revolve around a scarcity of money. We’ve trained ourselves to think this way. It’s unfortunate that we live in this kind of “lack” mentality, and it’s possible to adjust your money mindset with some work.
I’m not a therapist but I am a money coach for business owners. I’ve heard a lot of money mindset challenges over the years and I’ve worked through some of these challenges myself.
I grew up in a home without a lot of money. My mom was a teacher, historically a low-paying profession, and my dad changed jobs a lot. Some of my earliest memories are of the adults in my life arguing about money. There often wasn’t enough, and there were a lot of arguments about this fact.
You might see how this might be uncomfortable for a child. It led to many beliefs I’ve had to uncover and heal in my adult life. The money script I find most prevalent, now that I have some disposable income, is this need to spend it to show that I have it since I didn’t have it when I was younger.
Now I know that doesn’t really make sense and it sounds strange for me to put that down in writing. But it’s true. I’m aware of this belief and routinely have to stop myself when I buy something to think about if I need something or if I’m buying something because of my belief that I need to show people that I can. Silly, right?
You’ve probably heard financial advice to ask yourself if you’re spending money on something that’s a “want” or a “need.”
I agree with this, but I think it’s important to take it a step further. You need to understand why you have the want in the first place. I know that my own “want” stems from wanting to prove to others that I now have money. But when I think about “want” vs. “need,” I can make a decision that I also want to have money in the future. That can help me decide to not buy the thing right now.
Many business owners have a scarcity mindset around money. They’re afraid to spend money because they’re afraid that revenue will drop or they’ll need money for something else down the road. And yes, that could happen. It probably will at some point. But having a scarcity mindset, which is also close-minded, causes us to miss out on so much.
I’m not suggesting that you go out and spend recklessly. But I am suggesting that you look at the possibilities out there, take control of where your finances are by implementing systems, and spend when you need to.
By allowing limiting beliefs to rule the way you’re managing your finances, you fail to look at creative ways to create more abundance in your life and business. For example, if you haven’t seen a revenue increase recently or you’re not growing as you’d like to, have you looked at your business model to see if you can make some tweaks?
A lot of gyms and fitness centers struggled during the pandemic because they had one way of generating revenue: in-person. I watched too many people close their minds to possibilities outside of that face-to-face model.
So many industries moved to virtual, including education…which may be one of the more difficult models to implement a virtual option successfully. Of course, it wasn’t perfect. But schools had no choice but to teach virtually. So they made it work. And over time, they made changes and improvements to better support kids.
We have to put in the effort and work to change our mindset and our circumstances. Sometimes that means letting go of limiting beliefs, understanding our past experiences, and changing something we’re resistant to changing.
It’s not your fault that your money mindset is where it is, but you can adjust your money mindset to break the cycle.
If you’re feeling stuck and don’t know where to go next, you might need some support to get you over the hurdle. We can help! Often another set of eyes or someone to bounce ideas off of is just the thing to move you forward.
Do you know how profitable your gym is? To be clear, the profitability of your gym isn’t the revenue you’re bringing in or even your net income, after expenses.
One of the biggest mistakes we see business owners make is over-simplifying the profit in their business. It doesn’t have to be a complicated process, but it does take a little bit of thought.
And to actually see real profit month over month and year over year? That takes a plan.
If you’re like most of our clients, you’re taking some time in Q4 to look at your financials and set goals for the coming year. Financial fitness doesn’t happen overnight and you can’t think your way into a healthy place. It takes action. And small business financial management is essential to your long-term survival.
So what needs to happen to create a financial plan for your small business? It’s about knowing what you need to do, when you need to do it, and having the accountability to make sure it happens.
Because, as a busy business owner, you know that making it happen is a big part of the battle.
Do you ever wonder where all your revenue goes each month? You’re not alone. If you run out of money, your business will go under and be among the 85% of businesses that fail in the first five years.
It’s not a lack of revenue that’s the issue, which is helpful because more revenue always seems to be a challenge.
Nope, the key to business success is putting up guardrails and sticking to them.