Janelle, a client of mine, came to me about making some decisions around her money. We scheduled some time and took a look at her business and personal expenses. What she was spending seemed pretty reasonable considering her location, business set up and family size and situation.
Eight out of ten of businesses just don’t make it. They struggle with fluctuating revenue and revenues that are just too low to sustain the expenses required to run the business and the family.
There are two ways to resolve the problem:
1. Spend less.
It is always a good idea to check in on your spending to see if you have money going out that isn’t necessary. Look for spending that isn’t revenue generating. Make sure you don’t cut back the marketing dollars – you need to spend those to bring in more clients.
2. Make more.
This is always the method of choice, and sometimes business owners forget that they have the power to make more money. You are in a unique position compared to those who work for a paycheque. You can choose to make more. Charge your business with the task of making the money you require to fund your life and your business and then do the work to make it happen.
Janelle and I looked at her revenue streams and at the challenges she was having. Being really open to new ideas, Janelle and I spent a good part of our call together brainstorming ways that she could make more money. We talked about how she offered her services and how she could reframe or repackage her offerings to get more clients started. We ran revenue projections so she could see how those new offerings would create the income she needs over the next year. Seeing the numbers and the possibilities got Janelle really excited – she could see how she can create the revenue she wants to fund her life and her business.
If you feel like you are going backwards, take a look at what is going out, and, take a good look at how to have more come in. Get creative, be open minded and explore the possibilities.
© 2013 www.karencollacutt.com
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Personal finance expert, Karen Collacutt is founder and CEO of Make Friends with Your Money. Karen works with ambitious people who are making good money but are wondering where it all went at the end of the month. She helps her clients to get clear on their money life challenges and opportunities, matching their money to their goals. They build a plan, confidence and peace of mind around their money.
Certified Money Coach and Certified Financial Planner, Karen brings over 15 years of finance and business experience to her clients. Coach, speaker, author and change catalyst for those ready to create a positive and empowered money life, Karen delivers a fresh perspective on how to make friends with your money. www.karencollacutt.com.