Last November, I made a disappointingly puzzling observation.
Financially, too many small businesses struggle year after year DESPITE doing all the right things.
What are some of these right things as they relate to the finances, you might ask?
They include providing excellent service to customers and clients, which has led to numerous referrals. Those referrals are in addition to their already successful marketing efforts.
More ‘right things’ include having organized and updated financials in partnership with a profit plan and metrics that monitor business performance.
Recently, those ‘right things’ resulted in taxes being filed on time. For one of my clients, it would be the first time to not need to request an extension in the 11 years of being in business. That client also received a refund. #winning
Several dedicated, committed, and curious small businesses are willing and wanting do the right thing. I'm proud to know some of these businesses and honored to call some of them clients.
Yet, somehow the mark was missed.
Perhaps some of you can relate?
Despite the amazing sales and recent tax refunds, their bank accounts remained low.
Low bank accounts led to the desire to set aside a once successful profit plan for a later date…that's code for “when there’s more money.”
The feast and famine cycle returned. The struggle to pay bills continued.
Feelings of frustration, shame, and overwhelm were once again the norm.
But hey, at least the bookkeeping was done timely and the taxes were filed.
*Insert me giving two thumbs up with a cheesy and sarcastic grin*
I’ve come to realize that the traditional finance advice that includes spending less, saving more, and investing wisely is not sufficient.
There is a reason why budgets fail to work. There is a reason why many struggle to have a rainy day fund. There is a reason why people live from paycheck to paycheck.
The reason is mindset.
Specifically, it’s having the wrong mindset when it comes to money.
Mindset, as defined, is a set of beliefs and attitudes held by someone and about or towards something.
We all have certain beliefs and attitudes toward money, and it is those same beliefs and attitudes that impact one’s relationship with money.
Poor beliefs and attitudes towards money work behind the scenes. They draw power from fear and discomfort.
As a result, we end up sabotaging our efforts towards prosperity. What’s crazy is
we do not even realize we sabotage ourselves!
Most of the time, we look externally to apps, spreadsheets, systems, employees, or luck to resolve our financial problems. By looking within, however, and improving our mindset, we can do so much more to resolve what keeps us financially stuck while increasing our income and keeping much more of it.
In other words, doing the right things can get you the results you desire (and more) with a healthy money mindset.
Here are some tips to help improve your money mindset.
Believe You Have a Right To Prosper
Tell yourself you have a right to prosper, multiple times a day. Set “I have a right to prosper” as a reminder on your phone so that it pops up daily, on the screen, for you to see. Set “I have a right to prosper” as your laptop or desktop screen saver.
Believing is, in my opinion, possibly the only mindset shift needed.
Become Aware of Your Money Story
Here are some common story titles about money:
I’m not good with money.
My husband/wife/son daughter handles the money.
Money is the root of all that is evil.
I feel guilty for my success.
While there are more titles to list, at least one been said in your presence or by you.
Become aware of your story and change the title.
“I’m amazing with money” happens to be an equally amazing story.
“You are the average of the five people you spend the most time with.” – Jim Rohn
If you have owned a houseplant, then you understand that it needs a healthy environment in order to thrive. A healthy environment includes nutritious soil, water, and the proper amount of sunshine.
You too deserve a healthy environment.
Surrounding yourself with others that have a healthy money mindset is the soil, water, and sunshine you need. You’ll be inspired by their attitude toward money and business, and will thrive as a result.
Treat Your Money They Way You Would Want To Be Treated
Keep your purse or wallet clean. A dirty purse or wallet is like eating in a dirty restaurant. Unappetizing and gross.
Show gratitude when you pay bills. You want your customers and clients to appreciate you as well as pay you timely, right?
And for goodness sake, show up on time to meetings with your bookkeeper or finance advisor. You’d want your date or friend showing up on time for you.
Give Your Money A “Job”
Give your money tasks.
For example, have a bank account that is only for those unexpected repairs or unfortunate fines.
Taking this further, have accounts that are used only for payroll, operating expenses, office supplies, or anything you want.
Make sure every purchase or sale is in the best interest of YOUR business.
Changing your mindset when it comes to money will not happen overnight. Therefore take your time and take small steps.
If your mindset towards money is hurting your finances, let's talk about it. You will experience a change in mindset after one call, and it's free! Click here to schedule your time.
Cheers to your prosperity.