Session 220: [ENCORE] Money Pitfalls That Come With Business Success

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Overview

Do you “have it all together” when it comes to your business finances? My hat’s off to you if you do, but for most of us, the painful truth is that any business journey comes with its own set of challenges and lessons, some of which must be learned the hard way. Like many of you, I like to pretend that I have it all together, but today’s show is all about transparency and baring it all—the good, the bad, and the ugly. Every few weeks I like to a solo session to share with you what I’m learning along with my business journey because I believe my experiences–the good AND the bad–can help others. I’ve learned what works and what doesn’t, and I’m willing to share those lessons with you with humility. Let’s talk about the money pitfalls that come with business success.

What We’ll Learn

  • When business success comes, you have tough decisions to make about handling money
  • I started STC in March 2015 with a blog, podcast, and the Facebook group
  • The first few months were tough–and there was NO income. I wondered, “Is this EVER going to be profitable?”
  • One wise thing I did was to put away several months of business expenses so as not to strain my family’s finances
  • In the beginning, I did it ALL by myself and was extremely careful with expenses to preserve my savings
  • Why I created a spreadsheet of expenses and matched that against monthly bank statements
  • Even though I created several streams that produced income, I didn’t track those as well as I should have
  • Waves of anxiety and stress were common for me as I asked, “Is this EVER going to work out?”
  • “I realized that if STC was going to be a business, and not just a hobby, that I needed to do a better job of managing the finances.”
  • The book that changed my life: Profit First
  • The book recommended that business income be allocated as follows: 50% to yourself, 30% to expenses, 15% to taxes, and 5% to profit (to be given to yourself quarterly)
  • Three insights from my journey to get my finances back in order:
    • Be aware of recurring payments
    • Pay yourself first in both income and profit
    • Budget based on where your business IS and not where you WANT it to be

Resources

Profit First by Mke Michalowicz

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Thank You for Listening

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