Finances

Managing the Finances of Small Business

Managing the Finances of Small Business
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“Success is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals.”

                                                                                                                                                                                                                               Jim Rohn

Learning What Matters In Business

The basic fundamentals Jim Rohn speaks of in this quote has to do with the basics of business:

Clear Vision
Clear Mission or Purpose
A Strategy
and
A Budget

The Clear Vision is about having true clarity about what your business is going to look like – next month, next year, in five, ten or more years. You need to be able to talk about this vision in a way that makes sense to others, and inspires those around you.

The Clear Mission or Purpose refers to knowing exactly what market you are in, and what target client groups you are going to serve. In other words, why you are doing what you are doing. You have to love what you do in business; you have to be passionate about what you are doing.

The Strategy refers to the small and big steps you are going to take to get there. This means a plan. Knowing what is most important in your business on a daily basis means the difference between success and failure.

But The Budget! The budget is the heartbeat of your business. You require a clear plan of where you are going to get your money, and where you are going to spend it. If you fail on this, you will likely have some big problems. If you plan, and strategize your budget, there are no limits on what you can achieve.

“No matter what business you’re in, business is business,

and financing and money are critical.

I would have made a lot fewer mistakes if

I had more schooling in that area.”

                                            John Daymond (FUBU and Shark Tank)

 

Basically, you have to know exactly what you want to do, have a plan to get it done, and the ability, persistence, and self-discipline to manage the finances to get it done.

It all needs to be down on paper.

Finances can be more challenging than some of the other three fundamentals; but it doesn’t have to be if you take the steps to get the first three down on paper, and then start a budget. If you are struggling with a budget that will meet your plan and expectations, you may need to ask for help. A coach, or an accountant, can help you with your financial strategy.

There are also many organizations that are out there willing to help. Many funders provide free up front consulting and coaching services to new startups or new businesses. Ongoing consultation is not necessarily free. One such organization is the Small Business Association – or a variation on that name – available anywhere in North America, on both sides of the USA/Canada border. There are banks and credit unions that provide business loans, and there are angel funders that can be found online.

But… before you can even approach these funding sources, you have to have these four fundamentals in draft form. You have to have some kind of plan for what you want to do and how you are going to do it.

There are business plan templates and budget templates online. You just have to find one that works for you. Many business plans are long and a bit overwhelming. For a short, clear and easy version of the essentials within a draft business plan/strategy template, contact coach@klarcc.com for your initial free consultation. There is no obligation.

For a simple start on a draft budget, just take a blank sheet of paper, draw a line down the middle and put Revenue on one side and Expenses on the other side at the top. Then start filling in what you know about your current or anticipated expenses and revenues; what they are, or will be, based on the first three fundamentals.

You have to figure out how much money you need to start up, to stay afloat and, eventually, in future, you will need to know what it will take to grow the business.

Just take the first step. Begin.

 

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