3 Ways To Makeover Your Business Finances

Getting your finances in order is critical to your business. It can mean the difference between success and failure.

 

What is the most important thing to you? Foremost it needs to be “Faith & Family”, but in  your business... the thing which is most important to you, captures your energy and attention, and you become influenced by it when making your daily choices. Plus you are more likely to become committed to whatever processes it requires to achieve success.

 

The first step to building a strong financial foundation is to take control of your finances.

 

MANAGE YOUR CASH FLOW:

Real Estate Professionals often have to wait several months between commission checks, Many agents must rely on debt to finance their lives during the “dry-spells”…don’t fall into this trap! Instead, increase your activity in order to fill your pipeline and soon you will bridge the gap in the time lag between pay days…

1. Increase the amount of calls you make

2. Write more personal notes

3. Do more face to face visits, schedule one lunch with a referral source per week

DEVELOP GOOD FINANCIAL HABITS:

Assess your current financial habits to see where you can improve. Make a list…in the left column place your good habits and in the right your bad. Be Honest!

Once you have your naughty and nice list; analyze what these habits are telling you about what you value. What are your attitudes towards money? Do you have an I’ll spend it and then add up the total later mentality? If so, it may be hard for you to ever get ahead…Small steps of improvement each day with your habits will get you closer to your goals.

CONTROL INCIDENTIAL SPENDING:

Always write down what you spend when you spend… You have to keep track or you will become “over-drawn” and lost in a financial black hole.

Write down your fixed monthly expenses… These are the checks you write each month were there is no “wiggle-room” ie: Mortgage, Car Payment etc.

Make savings automatic…Commit to putting something, no matter how small, away each month. The amount is not important…the habit of saving is.

Manage your incidental expenses…These are the expense you choose to take on, entertainment clothing, eating out, etc. If you are not sure how much you typically spend, take 3 months of expenses and add up what you spend on incidentials…divide by three and then you have an average amount to factor into your budget.

Finally, Don’t starve your business of money… If money is tight, make cuts to your personal budget before you cut your business budget…For example, instead of cutting out postage costs for personal notes…consider making cuts to your entertainment budget instead.

Your spending plan is your lifestyle written down economically! Grab hold of your finances and control them before they control you!!!!

Eddie Brown 2012

www.icu-coaching.com