That's right, I said it but it's not what you think. Your mind is the most important thing you should pay attention to when it's comes to running your business. No matter what mind set you have, it will directly affect your business whether this means a positive or negative outcome. Here are 6 goals to get your mind in shape to run your business effectively:
1. Begin with the end in mind
This is your vision! Why you started your business. What your business looks like. How this will make you feel and how it will help your family down the road. Take a paper and write this all down and make a list of how to get there. Set your 6 month goals and 1 year goals. This is a great one especially if you are a new business owner and just starting out! At the beginning is when we have the most excitement and "fuel" to get running. So having your plan in place is crucial to stay on course. Number them from most important tasks to least important and check them off as they get done. Every day though begins with your mind.
2. Expect the best
Don't let fear and doubt take over! This will stop us dead in our tracks if we let it. Your mind is a powerful thing and the negative thoughts that seep in will ruin us and our dreams faster than anything. The cure to this is ACTION. Keeping one foot in front of the other and moving forward works wonders. You will face those fears and end up finding that they weren't as big of a deal as we chalked it up to be. This also includes the negative words of others around us. There will always be "haters". The only thing that shuts them up is success!
3. Put your mind to work doing only what you can do
When you are first starting out, you may wear many hats in your business. As your business grows, you either need to delegate or delete as many tasks as you can. You don't need to spend your time deleting emails or running the front desk. That's not the best use of your time. There are many apps out now that use automation as one of their features to help and definitely worth looking into. Time is the only thing we can't get more of so make the most of it.
4. Stay in line
YOU are what is going to make your business successful so it's vital that you have a laser focus. There are way too many distractions these days. Your cell phone is the main source of them. Don't let it be in your sight when you are doing business tasks or with customers unless needed. It's amazing how fast something small will catch our attention. Being responsible and mature play a big part here. Keep your mind focused on having a productive day and deleting distractions. You will be so glad you did at the end of the day! Reaching your goals will not happen when you waste that valuable time you have on meaningless activities.
5. Working on you and your business
Be the best you! With technology changing rapidly, we have to always be learning. If you get stuck in your ways, you will be left in the dust. Our business is our living so we need to be shaping our minds constantly so we can be experts of our field. Learning never stops as we develop our businesses. This also means taking care of yourself and filling your mind with good things.
6. Having an attitude of gratitude
Have the mindset of serving others and being thankful! We truly are so blessed and have so much to be thankful for. Start your day with a smile on your face :) Even though it's hard sometimes, keep personal and business separate. People will notice if something is bothering you and you don't want that affecting the image of your company. Also, celebrate your wins no matter how small. Think back to where you were last year or even a couple months ago. You have come along way since then and that is something to be excited about. Every little win is one step closer to your goal.
So Remember: Check yourself before you wreck yourself!
According to Fundera.com, a whopping 82% of businesses fail due to cash flow problems! I know you don't want to be part of this group in the future. But what if your business is already heading in this direction? The big difference you can make right away is understanding your cash flow. What does this mean though?! Well, the statement of cash flows explains where your money came from and where it went in a certain time period. At the end of every month, I provide my clients with 3 financial statements. These include the balance sheet, income statement and the statement of cash flows. I have heard of other bookkeepers giving their clients just the balance sheet and income statement on a monthly or quarterly basis which is fine. I personally feel though that the statement of cash flows is what ties all the statements together and allows the business owner to see his/her finances in a full picture view. Here's why! The balance sheet answers what your equity(capital) is in your business for a selected time period. What was my profit? This is what the income statement explains. And finally adding your statement of cash flows into the mix brings it all home. When you see exactly where you are spending, you can cut in certain areas. If you are like many businesses where profit is higher in certain months of the year, you can plan ahead your expenses. When the slower months come and you aren't prepared, it can put your business at risk. Like I say often, you can only manage what you measure! Being proactive is the key to success. I recently read a question someone asked online which was, "As a business owner, what is stopping you from hiring a bookkeeper?" A man answered and said he has shoe boxes full of receipts and it takes him two whole days a year to get them organized so he can do his taxes. He said he would rather take this time and do it himself rather than pay a bookkeeper. My first thought was this business owner misses the point of what a bookkeeper can do for him and the value of what those services could bring to his business. Taking a proactive approach to your business' finances is where growth happens. The statement of cash flows looks closely at 3 main categories: the operating, investing and financing activities. Your operating activities include your day-to-day expenses. It also explains how much money was generated or used from our services and/or products. The investing operartions include buying equipment (fixed asset) for example that helps your business bring in more profit. Lastly, the financing activities involve taking out a loan to buy that equipment. We, as business owners, can temporarily hide behind profit but we can't hide behind poor cash flow. This statement let's us see what our financial situation is really like. Each month, I either Skype or have a phone conversation with my clients to discuss their financial statements. Having these statements aren't enough if you don't know what the numbers mean for your business. The statement of cash flows alone could answer the questions your business has to not become part of the 82% of businesses that go down. You're not just a business owner, but a parent, spouse or young person trying to make it on your own. Your business is your livelihood and means everything to you as it should. Why not use these tools available to make your business everything you want it to be!
Most businesses out there aren't a one man operation. It takes a team to have a well oiled machine. Everyone doing their part and coming together with the same goal in mind makes a successful business. Your team though doesn't all have to be "in house". Outsourcing some of the services is good for you. Let's go into why:
1. Time saver
If you are a small "mom and pop shop", you are running most of the business yourself which keeps you very busy. Your books will be the last thing on your list at the end of the month. If you are a medical office, your staff is busy with patients, billing, answering the phones and keeping the office organized and running smoothly. Having an outsourced bookkeeper allows your books to be focused on without the rush of time being squeezed in here or there.
2. One less employee on the payroll
Saving money is yet another benefit. Bookkeepers can assist with A/P and A/R along with keeping up with the books. Bookkeeping services ARE tax deductible and here at On Point Bookkeeping, there is only a monthly rate so there's no paying someone by the hour!
3. Up-to-date Records
It's very common to see businesses with books that need "clean-up". Thinking it's something I'll do later is not something you want to make a habit. It maybe just not knowing how to classify and reconcile your accounts. If you get too far behind, the fees for historical cleanup get very costly. Also, if you want or need to get a business loan, the bank will need to see up-to-date financial statements. Tax time is the other obvious reason your books need to be tidy.
Even though you have someone in your office keeping your books up-to-date doesn't mean it's getting done correctly. Now this isn't against them or that they mean to do it. Giving your employee this duty if they aren't trained can make them feel overwhelmed or unsure in their confidence if the books are done right. Outsourcing your bookkeeping now allows that employee to do what he/she does best and focus more on the job they were hired for. Bookkeeping is more than reconciling your bank accounts, it's understanding what your numbers mean and how they are affecting your business in the future.
These are a few ways on how and why getting an outside bookkeeper helps your business. Maybe some of these hit home with you. I would love to help you and your business thrive more. Call or email me if you would like to get started or have any questions. Thank you :)