3 Ways to Care Less About Money
Many business owners use their gut to run their business. Gut decisions limit your power as a business person in at least two ways. First, your gut doesn’t give you a wide range of options. Second, your gut focuses only on now. Increase your power by getting some emotional distance, or what I call Care Less, from the financial business decisions in your business. Care Less empowers you to make better financial business decisions and gain the financial power you’ll need in the longer term.
Care Less about what’s going on now and do a financial fire drill. Big things can and will happen in your business. Your Balance Sheet is your go-to financial statement to help you prepare an effective financial response. You want to prepare now now to reduce possible panic and costly financial decisions later. The Balance Sheet shows you the historical dollar value of what you own and what you owe.
- Write down your cash balance, who owes you money and what assets you could sell if you need to.
- Write down how much debt and bills you have and their due dates.
- Is your credit score 720 or over so you can borrow money at a favorable interest rate?
With the cash you have can you pay your bills and debts for the next three months? If not, what needs to happen to make that happen?
Care Less about financial details and more about the big $$$ picture. At minimum plan your quarter and year by making budgets. Include your Profit and Loss Statement, your Balance Sheet and your Cash Flows.
Get it on your calendar!
- Regular budget reviews. Evaluate what happened compared to what you expected to happen.
- Bills due
- Debt payments due
- The end point of you in your business
Regular review is important so that you can adjust your financial strategy. It’s also difficult if only your gut is present. Your gut’s going to tell you to skip the review, it’s all good. To make it easier, don’t do it alone and think about Willy Wonka. Remember how Willy Wonka told Charlie that he couldn’t run the chocolate factory forever? You can’t do this forever either. Think of Willy Wonka and how even he had to have an exit strategy.
Care Less so that you’re not careless.
Caring less means having time to give proper care and attention to fewer things.
“If it doesn’t evolve me, it doesn’t involve me.” Your passion got you in the business but staying in business relies on your business’s sales growth. This is important if only for the very human desire to get a raise every year. When you name important projects, and plan their expected profitability you will evolve. And it’ll be easier to be involved in the day to day of your business because you’re not always reacting.
You’ve got to Care Less to get better results from what you spend, borrow, save and invest in your small business. Don’t ignore your gut because knowing your joys and fears and living in the moment are some of the best things about being human. Just use the power of the Care Less system that includes data and logic. You’re in this for the now and want to have financial power later too.
Money Native founded by Liz Lemesevski helps small business owners and non-profits improve profitability and cash flow, make financial projections, and use the power of Care Less.