Anything that is going to help your business increase profits has got to be a good idea – right?
Often entrepreneurs and small business owners have incredible skill around the core product or service of the business but may lack some knowledge or experience in other important areas… like money management.
When it comes to the heart of your business you probably know everything that’s going on, and probably a bunch of ways you could make things better and grow your business. But how much could you say you know about managing your business’ profits and cash flow?
You might be very surprised by how much better your money could be managed so that it works for you, not against you.
This is where a money manager can help.
What does a money manager do?
When surveys are done about the things that cause small business owners the most worry, money always tops the list. So many businesses are living contract to contract, with barely enough cash flow to pay their bills and taxes.
A money manager has a range of expert skills they can bring to your business and your finances.
In a nutshell, a money manager can assess your position, and tell you ways to improve it, encouraging your money to work to its true potential. This not only increases your profits, but also increases your knowledge about how money flows through your business and improves your confidence around it.
A money manager brings a cool head to the proceedings
A money manager can apply a steady hand and objective set of extra eyes over your business.
When your business is built on your passion, it is easy to get swept up in trying to grow it however you can. Many entrepreneurs waste money early because of their enthusiasm about growing, overspending on advertising, staff and infrastructure, and so many other random things that are not critical for the growth of the business.
A money manager removes the emotion and personal mindset problems from your money. Advice from this space dramatically impacts your cash flow and business growth.
A money manager also helps you establish systems to track what comes in and out, and budget effectively for business growth.
Separate personal finance from business
For start-ups, it is often difficult to separate their business finance and borrowing power from their personal finance. Many small businesses launch using their personal credit score and personal assets. However, there are so many reasons why you should have clear separation of income and expenses, including personal liability, tax issues and convoluted accounting records.
This is one of the things that you should do as soon as possible after starting out – and a money manager can help you do this even faster.
For example, I can help you get clear about divisions between personal finance, capital requirement, and working capital. And if you are unsure about what that sentence even means, then it might be time to give me a call!
Uncover ways to save money
A good money manager will get to know the ins and outs of your business and will help you find extra ways to save money. There are guaranteed to be things you could be doing more efficiently or spending in a way that gives your business more value for money.
Through a greater knowledge of the market, a money manager will be able to negotiate better loans or credit terms, help you to lower bank and other fees, and help you access better deals on everything – including accounting software!
Further to this, money managers and mentors, address and work through money mindset issues of the business owner that are impeding the productivity, pricing or growth of their business. You’d be surprised just how much impact money blocks can have on the success of a business. Read more on that here.
A money manager can also help to make sticking to a budget a natural habit of your business (it doesn’t sound exciting, but in business terms, it’s a good thing, trust me).
Look to the future
Some businesses work very well in the now but are not good at looking to the future. A good money manager will look at your past, to learn how you got here, your present, to see what is coming in and how you can do this better, and the future, to plan and grow your business sustainably.
Is this something a small business owner can just pick-up?
Business finances can be complicated and time-consuming for many small business owners. Not just because accounting may not be your greatest skill, but because you really are busy just doing the day-to-day work of the business.
Not only do you not have extra time to get your cash sorted, but you definitely don’t have time to learn in depth money-management skills overnight.
I like to think of a money manager as being a guide to help you learn the skills you need to get better at handling your own money and an advisor on how best to grow your business from a financial point of view. As a money manager myself, I work to empower my clients to learn and take on what they can, when they are ready to.
If you would like to get to know more about how I work as a money manager and mentor, book a curiosity call with me here.
Profit First can benefit the growth of your business from DAY ONE!
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