Opening a new business is a scary prospect because there's always a lot of uncertainty. For new business owners especially, the fear of the unknown is centered on the availability of funds. Worrying about money is common, and even people who aren't business owners do it.
However, unlike non-entrepreneurs, a business owner's finances, as well as their assets, are often all locked up in their business, and a wrong financial decision can have devastating consequences. To help business owners, especially new entrepreneurs, worry less about money, we asked 15 experts from Forbes Coaches Council to share their recommendations below.
1. Have A Flexible Business Plan
A well-developed business plan will help you understand how to use your resources, even if they may be limited. The plan allows you to think in advance about how to allocate resources upfront so that you can concentrate on other things afterward. Without the plan you are vulnerable to making decisions that are shortsighted because you tend to do only activities that you think are "free." - Donald Hatter, Donald Hatter Inc.
2. Embrace Strategic Spending
There are plenty of shiny things vying for your business budget. Many will not support your goals, or they could, but at a different time. Set strategic goals around what is important to accomplish this year. Then, as things catch your eye and imagination, order them by sequence and priority—that is, by contribution value and timing. You have to spend money to make it—just be strategic about it. - Damaris Patterson Price, Working River Leadership Consulting
3. Create A Cash Flow Forecast
Create a cash flow forecast, an indispensable tool for monitoring and predicting the flow of money moving in and out of your business. A week-by-week forecast gives a granular view of the cash needs of the business. The shorter the time horizon, the more accurate your forecast should be. It will help you identify potential upcoming obstacles but worry less about cash flow overall. - Andy Bailey, Petra Coach
4. Turn To And Trust Your Data
When fearful about your money, look at your data. Create a simple spreadsheet where you record your monthly sales and revenue. One client looked at the time lag between selling work and getting paid for the work. She saw that she could sell work in January but not receive a check until April. Those facts helped her relax and be a better business owner. - Pamela Scott, MentorLoft
5. Start With Clear Purpose-Driven Values
There are millions of reasons to stop businesses, projects and relationships. It is essential to be able to look back at why we started something; it is even more so to have clarity of personal purpose and values derived from this purpose from the start. Start with purpose, create everything around it, including your financial planning, and you will become resilient to even financial obstacles. - Peter Jansen, Radio Latino Inc
6. Focus On Your Clients
Your ability to align with your clients is what makes you money. Focusing on their needs and providing a solution that makes their lives easier is key to your financial success. Whether you provide a product or a service, your business exists for your customers. Stay focused on how you can excel in providing solutions to drive revenue and, ideally, referrals. Happy clients means money in the bank. - Kathleen Woodhouse, Nova Leadership
7. Be In It For The Long Haul
Most new business owners get too focused on short-term goals, expenses and opportunities, which puts them in the "get money" mode. Instead, focus on the big picture, the long game, and know that the actions you are taking today will reap their harvest in due time. Focus on becoming the best business owner you can be and making your customers priority—with that, more money is sure to follow. - Jenn Scalia, Million Dollar Mommy dba Jenn Scalia
8. Plan For Payday And Work For Fulfillment
My advice is to plan for the money goal ahead of launching your business. Let's get it straight. You are in business to make money, so you need to prepare a plan to get paid. Don't get carried away by the common belief of "if you do what you like then you will win." You need to know if what you are passionate about will get you paid, and then become obsessed. - Sameer Khan, Inspiring Insights LLC
9. Have A Clear Sales Strategy
As a new business owner, spend more time being intentional and applying energy to developing, implementing and executing your sales strategy and measuring progress to your established goals. Allow your partnered or hired financial experts to manage your money obligations while you expend your energy realizing your sales goals. Maximize and leverage your talent and experts to achieve success. - Lori Harris, Harris Whitesell Consulting
10. Leverage Other Resources
As a small business owner, cash flow is always top of mind. Investigate resources that help you keep the boat floating without taking on water. Here is one small tip. Some credit card companies offer small businesses 90-days same as cash, which gives you the ability to float without digging into your pockets. This helps when your invoice cycle is longer than expected. - Christine Mann, MANN Consulting, LLC
11. Introduce Recurring Revenue Opportunities
Money seems to always be on the mind of business owners. Identifying and introducing recurring revenue is an opportunity to remove the "hunting" from your business and take money off your mind. Investigate where customers most often make (or could make) repeat purchases, then introduce a recurring revenue opportunity—a subscription, an automatically reloading gift card, the list goes on. - Kyle Cromer Elliott, MPA, CHES, CaffeinatedKyle.com
12. Cut Costs By Co-Sharing Office Space
Co-sharing office spaces or hot-desking is a great way to reduce costs for office space. Many of these places are orientated toward startups and entrepreneurs. The daily or monthly costs are affordable and include Wi-Fi, meeting rooms, printing and copying, startup or pitching workshops and networking opportunities. Plus, you meet like-minded people to collaborate with or test ideas on. - Frances McIntosh, Intentional Coaching LLC
13. Only Take Safe Risks And Practice Mindfulness
Before you spend money, ask yourself what you’re hoping for, but also ask about worst-case scenarios. If the money you spend doesn’t have its anticipated value, are you still OK? If not, take a more sensible risk. Also, practice mindfulness. It will give you more space to handle feelings like anxiety, and also help you direct your mind in ways that are productive rather than anxiety-producing. - Dr. Joel M. Rothaizer, MCC, Clear Impact Consulting Group
14. Let Others Worry
Someone has to worry about money, but it does not have to be you. A constant focus on revenue is exhausting. If possible, make it someone else's job to mind the money details, and as a leader, focus on value creation—the quality of the product or services you provide. Train them and trust them to tell you when cash flow is dangerously off. Just check in every few weeks. - Tom Kolditz, Doerr Institute for New Leaders
15. Focus On Building Your Personal Brand
Good entrepreneurs will make and lose millions of dollars over the course of their career. What matters most is your ability to manifest money and amplify and accelerate value. That comes from a strong personal brand and high-value, trust-based personal and professional relationships. You are one relationship and one introduction away from massive income and revenue. - Mike Koenigs, MikeKoenigs.com
