So many smart women start fabulous businesses yet they let themselves down by making some big money mistakes. Today I’m going to be talking about 4 of the biggest mistakes I see when it comes to money and what you can do to avoid them. So be sure to watch the video above and learn my 4 tips to avoid these money mistakes so you can have a prosperous and profitable business.
Women start businesses for a number of reasons. They might not want to return back to the work force after they have kids. They might hate their corporate gig. They might just want to have something for themselves, to make their own rules, to have their own financial destiny so when it comes to setting up businesses women are ready to go.
They’re so intelligent, they’ve got great resources, they’ve got great learning capacity except when it comes to money. So many women just don’t want to know. They want to avoid, they want to head bury or it all just gets too complicated. So they start to make some money mistakes that really hinder their business growth and I want to talk about them today.
Now the first one is that a lot of women in business will decide that it is all just too much, they don’t know where to start and so they do nothing. This is a real problem because when you’re not actually taking active steps to do something, to learn something, to take some action with your money, you are stepping backwards. You are not able to come forward. You are not able to get that financial knowledge, that financial empowerment, that financial confidence that you need to really run your business like a boss, like the CEO that you are.
A lot of women will just tend to ignore it and this will wreck havoc on their business. What you need to do is you need to consult a professional. A great accountant, a great bookkeeper, a great financial advisor or a great money coach. Someone who can help you really figure out what your business needs. When you ask around your friends, your family, you might get some advice but it’s really not going to be the type of advice that’s going to see you extend your business and grow your business, so really seek out a professional.
I’ve had women say to me that they don’t want to do that because they’re scared of the cost. They’re scared that it’s going to be too much money for them to invest but I really want you to ask yourself, what is it costing you to not do this. What’s it costing you to not have this knowledge, to not take these action steps. It not only is bad for your business but it’s also really bad for your mind set and it just continues to reinforce the fact that you’re not going to be good with money and so therefore that opens up a whole other can of worms.
Get some help from a professional today.
The second money mistake that I see women making all the time is that they are under earning and overspending. So many women start up their businesses and they do it with such love, they do it with such passion and they want to be of service. Yet, there is such an eek factor when it comes to money. They don’t know how to ask for it, they don’t know how to close a sale, they don’t know how to explain the value of what they do. They don’t know how to actually go about asking for the money to deliver the service that they can deliver to their clients to get the results.
Now this is causing women to seriously under earn and it really starts to then bring in the self doubt, the lack of confidence so it’s imperative to start asking for money. To start seeing what you do as of great value. Just because it comes easy to you, just because it’s something that you love doing, doesn’t mean it’s not worth something. It’s worth a lot. It’s worth much more than you know. There are people out there who need you, so if you can start seeing that your product and services need to get in front of people, you need to start selling to people and you need to start being paid for those services then your whole business can be transformed.
Selling is helping. You are not being sleazy or slimy or underhanded. You are helping people and that is worth being paid for and being paid well for. Now on the flip side of that on top of the under earning is the overspending. There’s a lot of bright shiny stuff out there and there’s a lot of FOMO, so if you find yourself in that position where you are over spending, you’ve got to stop and really pay attention.
Really look at what that is inside of you that’s calling you to do that. Is this something that is genuinely going to help your business? I’m not saying to stop investing because you really need to but what I’m saying is you need to spend consciously.
You need to stop and really think about what you’re buying. Really, really make sure that when you purchase something whether it be coaching, a programme, a course or whatever it is, you implement it because if you just keep buying things and shelving them and you’re going to get to them one day in the future, you’re just throwing money down the drain. So really make sure that you are not overspending, you are spending consciously and wisely and you are making sure that you are being well paid for for what you do and that will help get rid of all of that angst around money and what you will do to earn it.
Now the third mistake that I see women make all the time is that they tell me, I’ll get to that once I start making more money. I will deal with my money once my business grows and this is a huge mistake because it’s so important to actually get your financial house sorted ASAP.
Get the bank accounts in place, get your systems in place, get your scheduling in place. Get everything flowing. Get your email marketing in place. All of these systems will help you and then you’re accounting systems need to follow. A lot of people will say, I don’t want to invest in an accounting system, I’m really not earning that much money yet, I’ll just use a spreadsheet.
Look you can do that, but there are some really inexpensive subscriptions to some great accounting systems now and it’s well worth your investment. Waiting until later is not going to be of great benefit to you, because once you get there or if you do get there, it just becomes a giant issue that you need to solve and it becomes much more complicated.
If you can sort these things out now, if you can get everything in place, if you can clear the financial clutter and be ready to invite money then the whole process just becomes so much easier. If you cannot manage your money $20,000.00, $30,000.00, $40,000.00 a year, managing it $100,000.00, $150,000.00, $200,000.00 plus a year is going to be a nightmare unless these systems are in place so don’t wait until you get there or if you get there make sure you have it in place to ensure that you get there.
The fourth mistake that I see women in business making all the time and it kills me is that they don’t pay themselves. They will pay everybody else but themselves. They pay their PA, they might pay some Facebook strategist, they might pay their coach and everyone else is getting really more compensated for your business except you. This has got to stop. Women have got to start paying themselves.
Ultimately, the goal is to take at least 45% to 50% of your revenue. That’s what you need to take as a business owner. If you don’t, you are basically just being a slave to your business but what most people tend to do is that they’ll take any money that they earn and then just reinvest. Of course you need to reinvest, of course you need to put some money into your business growth, without it you can’t really come up but if you are continually reinvesting, ploughing that money back in and not taking any for yourself, you’re working for nothing.
You’re working long hours, you’re putting in so much effort and what will happen. You will become hugely resentful in the end. You will burn out, become exhausted and become disenchanted by your business. We don’t want that.
We started these businesses and everyone started off on a high. They were so positive and energised and excited to put things out in the world and then when you keep working at it and actually getting no financial return for it, it’s exhausting and it’s not fun anymore. Make sure that you start to pay yourself, even if it’s a little bit to start off with and increase it every single time.
So I hope you’ve found these tips useful. If you did please share and like this video.
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