Mastering Money as a Business Owner

16 December 2024, 11:15 pm

Mastering Money as a Business Owner

Money and business go hand in hand.

However, money and cashflow are amongst the single most frustrating and pressing problem that business owners have.

If money is a problem for you in your business, then you have some work to do to achieve mastery over that money. Once achieved, you can look forward to not having to worry about money or cashflow so much in your life. We’re sure that would be a relief.

Many business owners make the mistake of focusing on the money, when the problem of money has nothing to do with the money itself.

Money is an outcome of being good at business.

What does being good at business mean?

It means being able to make and deliver products and services to customers who value them, and who then pay you on time at a level that allows you to make a profit.

No products, no services, no customers, no pay, no profit.

This will give you a clue to the tips we’re going to cover in this article.

First up, you need to understand your value proposition for your business. In short, this means what is it that you do for customers that they value?

A business that operates for profit has to get this right otherwise you can be caught selling your products and services to the wrong audience, at the wrong price point and most importantly never being valued by anyone. This is even before the final nail in the coffin of many businesses in that they fail to deliver what they promise.

Here are three steps for mastering money as a business owner:

Step 1 for you then is to find out what the value of your products and services is, and this means find out what is important to your customers, what they value(what they will pay for) and of course – how much?

Part of Step 1 is also finding out which customers value you the most, and then focusing your effort on getting as many of these people as necessary.

You also stop providing your service or product to anyone who doesn’t value you or who is too high a cost to service such that you can’t make money.

Finally, anyone who is a poor payer and doesn’t pay on time, should also be discarded as customers as they all spell trouble with a capital T.

Once you know your best customer, and you know your value and you know that this level of value well delivered will be profitable to you, you can start focusing on producing as much of whatever that is for as many customers as possible.

There is no point in expanding a business where you aren’t making money on every transaction. You’re just building a bigger business on a foundation of sand and probably increasing your money problems.

Get profitable and THEN expand. Don’t expect simple expansion to be the solution on its own to your money woes. Many businesses go under trying to expand because they were never extracting value at the smaller size to fund the scaling of their business.

Step 2 for Productivity isn’t just selling more to more customers.

A key action is to help each of your staff be productive in their role.

This involves making sure that you hire skilled and effective people while also ensuring that you provide the right tools and training to each staff member so they can do their job effectively.

Giving them productive feedback on their progress and results will help too.

Step 3 is doing what you said you would.

The art of delivering on your promises is lost on poor business owners. But good business owners know they need to deliver what they say, to keep customers happy.

Happy customers become repeat customers and advocates for your business, dramatically cutting the amount of time and money you need to spend on attracting new customers all the time because you keep losing customers through lack of delivery.

Yes, there is a lot to being a successful business owner, but knowing your value, being productive and expanding your delivery whilst ensuring you keep your promises are all a great start to managing the money that will come your way when you do.

That is how you go about mastering money as a business owner.

If you’d like someone to show you some ideas on how to do this, we have senior advisors available who are willing to invest their time in you.

Our initial review meeting is complimentary and you could walk away with a lot of value in the way of strategies you can employ in your own life to achieve the outcomes above.

Call us on (03 9017 3235 or email better@finwellgroup.com.au or simply click the link below to book a time that suits you. What have you got to lose, other than time or money of course.

We’re also offering no-obligation initial review meetings and you can book your own time in this calendar. Click the button below to book.

The information in this article is general in nature and does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.