Money Management for Small Businesses – A Road Map
What does the correct money management do for your business and your life?
Money management for small businesses is the key to success
As with anything else in life, when you have a goal, a direction that you want to go in, you have to know where you started. It is much like the necessity of having a map when you go on a long driving trip across country.
A road map is essential for money management
Before GPSs, you bought an atlas or a local map, right? However, the standard map is the only standard part, right? When you plan a trip, you customize it to fit the places you want to stop, the things you want to see, how long you want to stay in a particular place, who you want to take with you, what you’re going to do when you get there … etc.. etc… etc…
Now you are asking yourself, “What does a map have to do with money management?” Absolutely everything. You are creating the map for your business and for your life. Your money is the way. However, the style of money management, like the way you plan your trip, is entirely dependent on you.
Walk on the wild side with proper money management
Some people like to go on the guided tours … but us entrepreneurs like to walk on the wild side. We want to do it OUR way. Create a map of your money so that you have a good trip, a good life and a profitable business.
How do we do this? We use a method of tracking your money, a method that works for you, for your personality, and for your business.
That leaves us with a lot of questions that need answers. The best and most important question is, “What will work for me?” If it isn’t the method that will work for you, then it just won’t work. Ruins the whole trip that way.
Avoid sabotaging your money management in your small business
For example, if you are not a fan of computers and have never worked with spreadsheets, it is silly to set up your financial tracking system on a program like Excel. Chances are you are going to get sooo frustrated with the program by attempting to figure it out, that you are going to come up with some really good reasons that you don’t have time to track your finances. You will be sabotaging your trip before you even get out of your driveway.
First determine where you are starting from. The tracking method is very important. It needs to be something that is relatively easy for you to use and understand. There are many methods available, and they are all acceptable. The point is to find one and make it yours. In order for it to work properly, it is important to be thorough and detailed.
Wendy Cassera