You probably think about money all the time as a small business owner. You think about it every time a customer pays you, every time you pay your employees, and every time you send money to a contractor overseas with Remitly.
The real question is, how much time do you spend thinking about how you feel about money? If you’re like most people, you probably don’t think about it at all.
However, if you own your own business, you could be sabotaging your success if you don’t take a close look at the attitudes you have about money and do something about it!
Here are a few ways you can adjust your money mindset so you can increase the success of your business.
Asking for Help Doesn’t Mean You’ve Failed
It isn’t uncommon for some businesses to fail because they needed help, but the person in charge wasn’t willing to reach out. You’re supposed to pull yourself up by the bootstraps and be self-made, after all!
That’s not the case. Even some of the most successful businesses in history have needed some help now and then. Don’t be afraid to approach the bank about a loan or ask friends and family if they would be willing to invest a little to get you back on your feet.
Money Is Made to Be Spent
It’s true that you should save money if you can, but many business owners take this too far. They aren’t willing to spend money on stuff they should in an effort to save more.
Money is meant to be spent! Change your mindset by thinking about money as a tool that will get you where you need to go, not a commodity that is supposed to be socked away for a rainy day.
Boost Confidence by Getting Your Ducks in a Row
How much do you really know about your finances? Clarifying all the details can help you feel more in control, even if you discover you’re in the red.
Items to take a close look at in your business budget include:
- Expected sales and revenue
- Fixed costs, like rent and utilities
- Variable costs, like production expenses
- Semi-variable costs, like wages
- Profits, or your income minus costs
If things look great, you’ll get a boost in confidence. If they don’t look so good, at least you’ll have an idea of the steps you need to take to make things better.
Learn How to Prioritize Spending
Now that you know you need to spend money at least sometimes, you have to know what to spend it on. Learning how to prioritize your spending can help. That way you aren’t spending money on coffee when it should go to your marketing budget instead.
By taking a long, hard look at your relationship with money and replacing your negative money mindsets with more positive ones, you can increase the success of your business and enjoy being a business owner at the same time.