Money can be a very emotional topic for many people, whether it's from childhood, a previous business, a previous employer, how you came into business, or because you feel like you need to make more. Most of us have some type of complex when it comes to money, and it often results in avoiding the subject altogether, even when it comes to your business!
If this is you, you are not alone!
These feelings towards money are what inspired us to create the community that we have. There is no shame in asking for help.
Many of our clients come to us disclosing their finances are a mess, they have no idea where their business is at, and some are even scared to know how their business is doing.
Entrepreneurs are passionate!
Learning how to understand your numbers will help you make data-driven decisions because your numbers give you a starting point.
Not knowing where your business is financially can cause you to make decisions based on emotions instead of data. As a business owner, you could get really excited about a new product, course, or service and invest right away without checking to see if your business is at a place to spend extra money.
From there, you can ask yourself what your goal is? Why do you want to invest (whether it's your time or money)? Is the goal to increase your brand? Are you trying to improve your social media engagement? Are you trying to build your email list? Create a new revenue stream?
Then ask yourself if this investment will help you get in front of your ideal client?
Ultimately your profit and loss statement is your best compass for making choices on your business journey. Is there an investment you think your business has to have to move forward? Then look at your budget and see if there are any places you could cut costs.
If you need help creating a profit and loss statement, or want one delivered to your inbox every week, schedule a free strategy call with us!