Wednesday, April 22, 2020

Make Your Finances Your Absolute Highest Priority

A note for entrepreneurs.

I have owned one or more businesses since 1995. I have been coaching business owners for more than fifteen years. So, I’ve seen lots of businesses, lots of plans, and lots of “profit and loss” reports. And now I am writing a book on starting a new business from scratch.

Even with all my experience, I am surprised at how many topics fall under the topic of finances. Over the years, I have learned that I have to take care of state and local taxes, licenses, employee expenses, supplier accounts, etc., etc., etc. Money. Money. Money.

I only point this out because it really struck me how much I wish I’d known when I quit my job and jumped into a business!

As a result of listing all the things you need to take care of – over 100, it turns out – I was surprised that 25% of them addressed some form of finances. And if you throw insurance-related cards on the same pile, you’re at about 40%.

The lesson is clear: If you want to take your business seriously, you need to take your finances seriously! And if that means taking some classes or reading some books, you need to do that.

There are certain financial topics you need to take extremely seriously and never take chances with. The top three, as far as I’m concerned, are taxes, employees, and cash flow. If you don't take care of those three things, you will be in financial trouble and have the government after you.

Once again, it boils down to working ON your business, not just in your business.

In these uncertain times, there's certain advice you must subscribe to. You may have heard this advice a hundred times and told yourself that it somehow does not apply to you. But it does. And if you had listened to this advice and put it in place anytime over the last ten years, you would have more money in your pocket today:

Get prepaid for everything.

I have written that phrase thousands of times. I have presented it in speeches and videos. I have begged coaching clients to accept it. And maybe it was safe to ignore this advice a year ago, or in December, or even in January.

But today, I guarantee that every dollar owed to you right now will be collected at less than 100%.

This is the day of reckoning.

Go collect your money - before some of your clients lose their business and can never pay you.

You will find yourself begging and pleading for money that is rightfully yours. You will bargain and think you've done well if you get sixty cents on the dollar.

Consider this your tuition - paid at full price.

And right now adopt the only policy that makes sense for your service-based business: Get prepaid for everything.

I can give you lots of other financial advice about payroll and taxes and cash flow reports. But all other financial advice is second to the most important rule you can ever adopt for your business.

Get prepaid for everything.


More juicy info for first time entrepreneurs . . .


The Small Biz Quickstart Workbook

Author: Karl W. Palachuk

Karl has worked with thousands of business owners and managers – and helped several of them make the move to self-employment. With this workbook, Karl will help you make the launch as well. This workbook is guaranteed to help you learn about what it takes to start and run your new business.

Available Now!

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