How to Quit Living on the Financial Edge and Become More Profitable

More new businesses will start this year than ever before, but relatively few of them will end up being profitable. Often, this isn’t because the concept isn’t viable…it’s because the owner doesn’t have the right systems and resources in place to help them plan effectively. They may or may not know when money comes in and when it goes out, but most often they have no idea if they’re actually profitable. Without even realizing it, they’re living on the financial edge.

I get it. I’ve been there. And I’m here to tell you there’s a better way!

“Living on the financial edge” in business means not understanding your numbers and “hoping” that it all works out. It means there are times you are rushing around dealing with cash crunches or trying to fix cash flow problems.

While risk taking can be a part of business, I really don’t recommend living on the financial edge…nor do you need to!  Not only does it cause undue stress and rash decisions, but it puts the health of your business – and the stability of your team – at risk.

Start By Building Stability

In order to lower the amount of “adventure” you find in your financial reports (because let’s face it, that’s the last place you want to find surprises!), it’s essential to build strong Financial Systems and equip your team to use them consistently.

These systems benefit your business in so many ways:

• They allow you to keep an eye on your numbers on a regular basis and use them for effective planning and forecasting
• They equip you to make strong, proactive decisions rather than rash, reactive decisions
• They help you communicate clear expectations to your team (which in turn, allows them to work productively and thrive)
• They build a stable foundation for your business short term and saleable assets long term
• They allow you to pivot smoothly when change is necessary and ultimately increase your bottom line!

Building strong Financial Systems isn’t easy, though. (If it was, we’d all be running profitable businesses with ease!) It is possible, though – and it doesn’t have to take a lot of time. With the right framework, you can work with your team to build and implement them within a matter of weeks. (Wondering how? Contact me – I’m happy to show you what I’ve learned over the last 20 years … much of which was never taught to me in professional classes!). My advice, don’t reinvent the wheel when you don’t have too!

Build Your Team Strategically

All too often, we as business owners get stuck in the trenches – the day-to-day grind of getting things done – and we forget to take a step back and plan strategically.

We hire reactively, simply to fill a position and keep the workloads manageable, rather than planning ahead. Rather than taking time to plan our growth and look for the right people, we hire quickly, onboard haphazardly, and deal with the consequences.

I want something better for you!

Rather than hiring just to fill a seat (and then hoping you can afford it), plan for growth. Build your Financial Dashboard and use it to set your goals and then lead your team toward reaching them. (And if you’re wondering, the answer is yes – we can help you do this!)

When you have your numbers at your fingertips and know how to use them strategically, you really can plan for growth. Imagine…

• Having the ability to be proactive in your hiring, putting the right person in the right seat the first time
• Knowing what goals you’ll need to hit and having a plan to reach them so that you can hire confidently, knowing you have the money to hire the right people at the right time
• Understanding how to allocate your payroll, marketing spend, and other funds for maximum ROI (Return on Investment). No more guessing!
• Coming from a place of strength and certainty in the numbers when you offer compensation and bonus plans to team members
• Being confident in the decisions you make, knowing that you’re driving your business forward from a place of stability into even deeper profitability

Sound good? With the right systems and the right strategy, this can be your reality!

Get Intentional with Your Numbers

Have you ever felt like your numbers are a mystery? Like there’s a deeper story there that you’re just not seeing? (No judgment here. I’ve been there!)

Your numbers are a powerful tool, but you have to know how to use them. This is where working with a strong Financial Controls Coach can help! (We happen to have two of them on our team that work with our clients because we know how important a Financial Controls Coach is and how often business owners need a little help.)

By working with a Financial Controls Coach, you can get your questions answered, discover how to use the resources and systems you’ve built, and develop a strategy that will drive your business forward to greater revenues and increased profitability.

And you can do it without the guesswork, without living at work, and without losing sleep at night.

You can build a profitable business that allows you to live the life you want to live!

It takes some work, it takes some planning, and it takes the right framework and guidance, but it really is possible. To help you fast track the process, we’re offering a 2-day Financial Workshop in Atlanta on November 10-11, 2022! During this workshop, you’ll have the opportunity to work directly with two top Coaches and business owners to build your Financial Systems, your Financial Dashboard, and to get the training and resources you need to accurately plan for profitable growth. To learn more about the daily agenda and secure your spot, click here – and if you have any questions, contact us!