Joanne is super passionate about her idea. She’s also a firm believer that she is the right person to bring this idea to the world.
She’s in the pre-launch stage of her business and is working out the details of how she will produce and deliver her product. And she needed my help in making some big decisions.
But when the time came to weigh up the different options, there were some critical details missing.
She had NO IDEA how much it was all going to cost. She also had NO IDEA about how much she might make from it.
When I probed a bit deeper, Joanne admitted that the numbers terrify her. And so she’s been keeping herself busy with the things that feel a bit more comfortable – researching the market, talking to potential customers, and crafting her brand image.
She felt that by making slow and steady progress, the rest would kind of work itself out.
Guess what? It won’t.
And this REALLY upsets me. Because I know that Joanne is not alone in this fear.
let me be really honest with you
Turning a blind eye to your finances is a sure-fire way to go broke.
And if you go broke, you can’t do the work you love.
If you go broke, your passion won’t help anybody.
If you go broke, you’ll suffer too.
it doesn’t have to be complicated
None of us are born knowing how to do fancy Excel calculations. None of us are born knowing the definitions for EBITDA, cash flow, bottom line, gross margin, yadda yadda yadda.
And the good news is…you don’t have to.
When you’re starting out, you can keep things REALLY simple. All you need to understand is what money is going out and what money is coming in.
Pay attention to these numbers EVERY. SINGLE. DAY. Don’t get scared or shy away from this tasks. Review your daily money in and daily money out until it no longer feels scary or icky.
let me make it even easier
Even if you have some familiarity with Excel, you may not quite know where to start. So I’ve created Money Matters, a one-to-one support program to help you take control over your finances.
Understanding your finances will enable you to make smart decisions. Making smart decisions will help you to focus. Being focused will progress your business.
Progress = more money in = not going broke!