LIFESTYLE
“NOT IT” AN APPROACH TO LIFE:
ALIGNING DOLLARS TO DREAMS BY LORI REHNELT AUFDERHAR (SHE/HER)
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n this small business talk, we’ll look at concepts to help us understand when to say “Not It” to whatever does not align with the investment of our dollars and dreams. It’s about spending wisely and saving, too! These concepts are about avoiding pitfalls and putting systems in place to make wise money decisions with your business. Many business owners come to me for coaching only to learn they didn’t think through what it was to run a business. Hobby businesses at best, many struggled with avoidable pitfalls. Sometimes we experience something and say to ourselves “I know that.” Knowing and doing are two different things. I know a warm chocolate chip cookie sample being handed out at the grocery store is full of bad ingredients and empty calories — that doesn’t always keep me from taking the sample. I know it’s bad for me, yet do it anyway; it smells so good. It’s the same way with our businesses — some concepts are so simple, we know it, yet we do not do it. I ask you to be open, and when you say to yourself “I know,” think beyond that thought to “where does that apply in my business?” Consider possibilities. Sometimes we see pitfalls, yet are too exhausted to avoid them, even when we “know.” Let’s set you up for success!
3 COMMON PITFALLS:
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COMINGLING OF FUNDS: Accountants remind us not to comingle funds. Most of us get that. For example, I bought a book at an author event recently
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and the author thanked me for the cash and promptly spent it on a beverage, not keeping the book sale separate from personal spending. Was the author planning to put the cash in their business account later? Maybe … Separate personal and business funds.
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CHARGING THROUGH LIFE – A FINANCIAL AVALANCHE: I met with a young woman who invited me to lunch. She insisted on paying since she invited me and at the end of our lunch, after purchasing my book, she stated she was “charging through life.” Yet she didn’t have the money to buy groceries this week for her children. She hoped her business would take off so she wouldn’t have to go back to the corporate world only to get burned out again. Be honest with yourself and your finances. When digging a hole, stop digging. Stop charging through life. If your business really isn’t working, charging more won’t help it succeed. Put a tourniquet on the bleed.
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LEAKY BUCKET SYNDROME: Are monthly charges eating holes in your financial bucket? Ever have a recurring fee you forgot about? Evaluate spending; monthly marketing for example. Do those monthly fees pay off? Are you actually using the service monthly, staying consistently in front of your following? Do your articles bring people into your studio? Are you promoting special workshops? Is it paying off? Or are you just using the service when you get the urge to “get something out there,” and hoping to draw a crowd? What’s your ROI – return on investment? Ex: Spending $35/month on Constant
Contact … am I seeing the value? If I’ve been sending out month after month and get people signing up for workshops, buying my book, and becoming clients — yes, the money arriving from my effort is worth the financial output. Don’t just throw spaghetti on the wall and hope something sticks. Stop and evaluate. First, document dates when recurring fees happen. Anticipate them, watch for them. Next, evaluate the service you’re paying for, is it worth it?
TO AVOID PITFALLS:
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CREATE A BUDGET: This may sound elementary, yet countless business owners I’ve worked with “just roll with it”. If they had the money, they did more, and if they didn’t, they weren’t able to take advantage of opportunities, letting them go by since they didn’t plan well.
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CREATE A CUSHION: How many of you have business savings? Just like a personal savings, our businesses benefit from a savings account. If you don’t have personal savings — start one and look at that as a potential red flag in your business financial life. You can’t save what you don’t have. If you have a leaky bucket, start with eliminating the leaks like a recurring charge for a service you don’t use.
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PAY YOURSELF FIRST: In business, just as you would in your personal life, build a cushion. An emergency fund and “fun money” for your business; be prepared. When you see something special, you can splurge and take advantage of a promotional activity because you planned ahead. +
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