Lots of us fear our finances.  I once used to too.
We fear what our bank statements or the cash point slip will reveal about the state of our finances, about how little money we really have.
Rather than face up to it we allow ourselves to live in a state of nervousness, stress and denial.  We may feel better momentarily and breathe a sigh of relief when our bank card is accepted at Tesco, today anyway, but sooner or later we have to face up to our finances and deal with them.

Unfortunately business owners also behave in the same way, rather than face up to reality.   Though, of course, we are those self same business owners, aren’t we?
So, if we don’t manage our personal finances why would running a business make any difference to our behaviour?

Cashflow, or the lack of it, is the number one reason business start ups fail in such high numbers.

But I have a plan ….

Open a blank excel spreadsheet and in the first column type in all of your monthly income and expenses. Then use the columns to the right to represent separate weeks of the month and enter the expenses into the relevant columns according to when they are paid during the month.  Do the same with your income.
Then you can see where the likely flashpoints are – when your income that week may not be enough to cover your expenses.  This means you can immediately see when you will need to leave enough money in the bank to cover the expenses of the following week.

Sounds easy doesn’t it?
But I know how facing up to the reality of where your finances are really at, is extremely scary.
The payback is that once you have done it, the sense of relief and your new found knowledge is exhilarating or at the very least it stamps all over your fears and gives you something to build on.

Does that promise of payback give you the impetus to do your own spreadsheet?
Or would you give this job to your bookkeeper or your accountant? And if you did would you heed the results?
Would you keep up with the spreadsheet? Or would you ask your bookkeeper to do it?

This is the first step towards never having those fears again.
So will you do it?  Today? Tomorrow?
Then make a commitment to yourself to keep a regular check on them, you’ll be glad you did.

You can get my complimentary cashflow forecast spreadsheet by clicking here

 

 

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