The Stages of Financially Growing a Business

Stages of Business Financial Growth: At Peace With Money

Starting a business is a financially intricate process. I’ve written at some length about avoiding financial pitfalls and myths, and important first steps, but something I don’t see many people talk about are the stages of growth a business goes through as it financially matures. Today I’m mapping these out for you, so you know what to expect on your solopreneur journey.

First, some general advice. When first starting a business, you have two priorities: a) get the word out about your business, and b) keep your expenses low. Doing these two things from the get-go will set you up for business success. If you need some more guidance around wrangling your business expenses, check out this article of mine. 

Fledgling

As you build your business, focus on streamlining your processes. Figure out how you can refine them to be time efficient. Keep track of time spent and ensure you are making a living wage and being cost-effective with your expenses. If you’re purchasing a lot of materials to create a product, look into bulk purchasing your supplies.

In this stage, it’s also important to cultivate the relationship with your current customers. Allotting time or room in the budget around strengthening customer relations and making sure your first customers have exemplary experiences with your business is very important. A good reputation sets you up for success, and good word-of-mouth exposure can eliminate advertising costs later on.

Growth

As your business begins to grow, again refine your processes to cut costs and increase efficiency. As you receive more orders or draw in more clients to serve, your processes may have to adjust to accommodate these larger numbers. You will likely find yourself spending more time doing production or client work. Consider the possibility of delegating or outsourcing some of your tasks, or find other solutions. Work on further defining your role in your business – what are the pieces that you want to keep doing yourself? What can you hand off? Continue to keep an eye on your bottom line.

Maintaining and Sustaining

Once your business establishes some staying power and becomes financially stable, it’s time to move to the next stage. Make sure your business is sustainable for you by keeping it fun and engaging. Continue to challenge yourself. Incorporate new ideas and investigate what role your business can play in the lives of your customers, clients, and community.

Stages of Growing a Business: At Peace With MoneySearch for feedback. Listen to your customers to continue innovating and refining your product or service. If you have a team of other people, focus on them to keep things fresh and engaging. Brainstorm together and streamline your business partnerships.

And of course, again make sure you are earning a living wage. Continue to examine your finances and find ways to improve the financial sustainability of your business. Part of the reason you created it was to meet your needs, after all!

Lastly, at all stages utilize Profit First. This is an essential part of every step, especially the fledgling stage. Setting up money systems that allow you to have a steady paycheck and stay focused on your own financial needs will help you create a business that won’t feel draining to operate.

I hope this little walk-through helped inspire you to work on your business idea! If you need more guidance, take a look at my offerings.

Angela

Image Sources: oldskool photography,  rawpixel

What’s Your Money Mantra?

What's Your Money Mantra? At Peace With Money

When I see the words “money mantra,” I am instantly a little skeptical.

People often confuse money mantras with affirmations – statements like “money comes easily and abundantly to me.” There is nothing wrong with affirmations, but they are not the same as money mantras.  Affirmations are what you intentionally tell yourself for 5 minutes in the morning as you get ready for your day. You may or may not repeat them for the rest of the day.

In contrast, your money mantra is what your actual belief is throughout the day as you make money and life decisions. Think of it as your guiding principle in financial matters. It is rooted deeply in your belief system and affects all your money decisions, big and small. 

My Money Mantra

I uncovered my mantra almost instantly: “having money in the bank gives me choices.” I think this mantra even helped me come up with my business name; having choices gives me a sense of peace. This statement is a basis for my daily decision making process and in my plans for the future. If I say “no” to one decision I can say “yes” to something else. Being able to choose what to say “yes” to is important to me. I want to able to say “yes” to making charitable donations, to supporting artists, to paying for my daughters college, to my husband retiring early.

DIY Money Mantra

What's Your Money Mantra? At Peace With Money

You can discover your own money mantra by investigating your beliefs around money. Do a little soul searching and ask yourself some questions about your positive and negative thoughts and ideas around finance. This list of 20 questions should help get you started.

This activity can be done solo, or with a money buddy or partner! Once you’ve investigated your beliefs, some positive statements that you can use as your mantra may start to pop up. If you find you don’t have a lot of positive beliefs around money, do some digging to find a mantra that feels true enough for you that you can start operating with it on a daily basis. Incorporate it into your money decisions and see if you can track your progress. Make sure your mantra is guiding you in the financial direction you desire. I desire choices – what do you want from your money?

A money mantra simplifies financial decisions and helps you create a personal financial philosophy. Uncovering one is in itself a helpful process that can help bring financial clarity to your life. Happy soul-searching! May peace be with your money. If you’re finding you need some financial guidance with your business finances, check out my services page or schedule a discover call.

Angela

Image Sources:  Thought Catalog ,  Diego PH

Book Review: The One Thing

At Peace With Money: Book Review: The-One-ThingThis summer, I read The One Thing by Gary Keller (no relation), and my initial reaction was irritation. Essentially, the book advises us to focus on one big goal that you want to accomplish and then break that goal down into smaller time chunks.The goal is to do something small to work toward that goal every day. The key is focusing. That’s probably why it irritated me.

Staying focused is definitely something that I struggle with. As a business owner, as a wife and mother, as a person in today’s world of distracting gadgets – focusing is difficult!  It seems there is always a fire to put out, a need to be met. Always there is an idea that is nibbling your brain, or a rabbit hole to dive into and lose 45 minutes of your life. My reaction was about something I need to work on in myself rather than the idea the author presents.  

He also suggests scheduling that focused time into your calendar and protecting it – another challenge for me. On top of that, he debunks the idea of multi-tasking. This felt blasphemous to me at first. What mother do you know who does not pride herself on juggling multiple balls in the air on a daily basis!?! It seemed to me that Gary Keller was basically trying topull the rug out from under my life! This book made me so angry that I had to take a few months to calm down enough to even write this review.

Practical Applications

But somehow, this morning I woke up thinking about this book again. A practical example to apply his basic techniques popped into my mind. Let’s say you want to save $30,000 to buy a house over the next 5 years. That sounds like a lot of money to save and a crazy goal! But if we break it down to saving $6,000 this year and saving $500 each month which means saving about $17 each day, it becomes manageable. To reach this goal, we ask, what’s the one thing we can do today to get that started? Perhaps you open the savings account. Maybe you start a side hustle and allocate all the income to that goal. You might start saving your cash in a money jar to deposit at month end. Maybe you resolve to pack your lunch.

The One Thing Book Review: At Peace With MoneyWhat’s important is getting started by taking some action today to make the goals you have for your future turn into a reality.  That is a lesson I can take from this book.

I might have to work on my focus, and reexamine my views on multitasking. However, I do feel I stand behind the ultimate message of this book: get clear on your goal, focus on it, and work towards it every day. If you do that, you will achieve what you’re after. Whether that’s saving for a house or starting a business, this is an important reminder in how we approach our financial goals. If you need an accountability partner to help you get started, please feel free to reach out.  I would love to help you reach your goals (and I promise not to forbid you from multitasking!)

 

Angela

Image Sources: Squidhub, Bonehead Business

How to Get The Most Value From Your Bookkeeper

How to Get the Most Value Out of Your Bookkeeper: At Peace With Money

As a business owner, every time that you outsource a task for your business, you want to make sure you are getting the highest value out of that task. Particularly if you are hiring a professional for services, such as a CPA or bookkeeper, they should not only provide the service you need to keep your financial records up to date. They should also be able to provide you with insight or advice into your business finances. They regularly see all the financial facts of your business right in front of them. If they aren’t interpreting and discussing with you the trends they see in your business,  or they aren’t talking about or making suggestions to support the health of your business , they are actually doing you a disservice. Financial professionals can easily access that information. Making sure you hire someone who is willing to talk to you about those things and provide information that will provide you with much greater value from this professional service. If you are able to apply these financial insights, your business will benefit greatly in the long run.

This point also illuminates the value of hiring a professional in the first place. Hiring someone who knows what they’re doing to both keep your books in order and analyze financial trends is important. Paying a professional a higher wage for a better quality work, rather than hiring someone who doesn’t do the job well, will greatly benefit you and your business. Someone who can provide you with valuable information about expenses, cash flow, profit margins, and other financial inner workings of your business can prove invaluable in the long term. Think of hiring a talented professional as an investment in your business’s financial wellbeing.

How to Get the Most Value Out of Your Bookkeeper: At Peace With Money

When you are looking to hire a CPA or bookkeeper, inquire whether their services include providing these insights and consultations. If you are already working with a particular professional, ask them if they are willing to start discussing their financial findings with you. If not, maybe it’s time to find someone else – because that valuable financial knowledge of your business is absolutely worth it. If you’d like to speak with me about my financial services, schedule a discover call!

Angela

Image Sources: Sergey Shmidt , Sharon McCutcheon