Often, entrepreneurs decide how well they’re doing based on their numbers. They will compare themselves to others. They will even market themselves as 6-figure or 7-figure entrepreneurs. Maybe, that’s you?
There is more that goes on behind the scene that is critical for you to know.
I bet you’ve got most of your bases covered in your business. You have your website, business cards, virtual assistant…maybe even a few other support people on your team to assist you. Or, if you don’t have these people yet, you are starting to think about this.
There’s one position necessary for both a profitable business. Every successful business has one.
Do you have a CFO (chief financial officer) for your business? Or, even worse, are you being your own CFO? That’s like giving a child free reign in a candy store! Yikes!
You probably think that you’re not a big enough business to have one. And, you’re probably right. You don’t need to hire a “CFO” officially, but you do need to start thinking like one.
Every time you invest in your business, you need to make sure it will be one that will move you forward.
Often, entrepreneurs get caught up with what I call “bright shiny object” syndrome- that is, thinking they need something because others have it or it’s the latest trend.
That may not necessarily be true for your business.
For example, maybe you think you want to write a book. You see a lot of press out there on social media about “best-selling authors,” and you want to be one, too. As someone who is a best-selling author, what I can tell you for sure is that you need to have the time and space to do this. Many jump the gun before having a foundational business (i.e., bringing in consistent income) and start spending too many hours writing their book.
What goes wayside?
You guessed it! Bringing in new clients because they’re so busy writing their book. There’s a right time and wrong time to take on these projects. Sometimes, it’s only a matter of waiting six months or so before moving forward.
Often, I see entrepreneurs sign up for so many programs at one time that they don’t make headway in any of them. They run around chasing their tails and often this leads to other irresponsible behavior as they spiral out of control. Having someone to run these decisions by would help them reach their success so much faster instead of spinning in a million directions.
Another way it can show up is by creating too many projects at one time. You’ll have lots of starts but minimal finishes. As a result, you become stressed out with little to show for it.
I don’t have an “official” CFO for my business. Instead, I run these new investments/projects by one of my coaches. They ask me pertinent questions, and I have to explain why this investment/project is what I need to do next. Sometimes, after this discussion, it makes sense, and sometimes I realize that it’s not right for me.
I do the same methodology for my private clients.
I ask them several key questions and then let them decide if it’s a “GO.” They often have a new perspective after our discussion. If it’s a “yes,” they know how to get the most significant ROI from this investment, and if it’s a “no,” they understand what a better step for them is.
(Hint: not only do I use my expert business strategy skills when helping them decide, but I also pull them back to their “vision statement” and “big why.” This new perspective allows them much more clarity on what is best for them instead of getting caught up in something that will set them backward.
Taking this step is different than asking your accountant or bookkeeper as they have a different perspective as they often look at things from a numbers/bottom-line perspective. There is a time and place to do this. Successful entrepreneurs do take many risks, and that comes in different forms, including financial. It’s about understanding what a good vs. bad risk is for you based on where you are.
Go!
So, going forward, either use a CFO or your coach (maybe that’s me!) to review your investments. I can help you make lots of money and help you create a more profitable business. Isn’t that what you want?
Be Brilliant,
Kate Beeders, The Breakthrough Success Expert and Founder of BRILLIANCE Builders™
Tap into Your Zone of Brilliance and Breakthrough Your Financial Glass Ceiling
Check out my newly released book “Go or Don’t Go: The Complete Guide to Accelerate Your Success and Tap into Your Brilliance”
P.S. My wise (and very successful) grandfather always said to spend your money on education, experiences and people (not on things). Apply for a spot at my next retreat
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