TUESDAY CHALLENGE: MONEY

Money is a topic that is never far from the thoughts of any small business owner or solo entrepreneur; we are happy when it comes in and sad when it goes out. It’s important to define your relationship with money, because it speaks volumes about the potential success of your business.

It is very important to learn and to adopt a realistic attitude about the money you have and to come to terms with your financial comfort zone.

In  working with small business owners for the past 25 years I determined that the majority of them are not in business to become very rich; most seek intangible rewards, such as being your own boss, allowing your creative juices to flow and for personal satisfaction.  In a recent survey less than 20% of small business owners put “money” as their top motivator.

Your challenge today is to complete a short “money self-examination”. Take this short quiz. Don’t answer the questions in your mind. The value of this challenge comes when you write down your answers and then review them. Actually writing something on a piece of paper (may seem old fashioned) requires more thought and is a clearer representation of what you really think.

• Why are you in business for yourself?
• Do you have a money team? (accountant, banker, attorney, financial planner)
• Do you have a working budget which includes your salary and retirement savings?
• Do you prepare a monthly income and expense report?
• Are your overall financial records in good enough shape to show a potential buyer if he came to your office today?

Too many small business owners work out of their check book and many don’t know the balance in their check book at all times. These five questions are more than just questions for you to answer; they are stepping stones to understanding the money basics you need to  run and grow a successful business.