A great read for entrepreneurs is called Profit First by Mike Michalowicz. I’ve fallen in love with this method for accounting and I honestly believe that if you apply it earnestly, you can turn any business around. It’s not easy but it’s worth it! (He also just re-released an updated version of the book!! It’s a great time to get into it).
My not so humble opinion on Money: It matters. And for those who don’t understand it – successfully navigating the waters of accounting and money management can be daunting. But get over that because until you conquer that fear, I can promise you, that you won’t be successful in business. Businesses are created to EARN MONEY! So if you are afraid of talking openly about it because you’re insecure about your lack of awareness or just your lack of funds – you wont get better at handling it.
Why are so many people afraid to talk about money? Culturally, we are pressured to believe that it’s rude, personal and taboo. This is foolish. Money is a tool that allows people to afford the lifestyle, experiences, and items they enjoy or desire. The U.S. is a capitalistic nation and we have a currency system – to ignore or avoid this fact in our day to day lives is like ducking our heads into the sand and just hoping it will work out. No – don’t do this, don’t be a fool.
A lot of entrepreneurial advice is focused on not being afraid of failure or taking imperfect action. This is good advice. These concepts are a matter of embracing vulnerability and they should also be applied to finances, too.
Example: Being open with employees about their financial relevance to your business helps them gauge how important each task in their day matters to the bottom line of the company. Another example: Talking to your investors or advisors plainly and openly will help them know where to guide you – they are likely to be the best resource you have and the most likely to genuinely advise you in a profitable direction. Fear of disappointment or embarrassment in money only leads to deeper issues. We have to feel comfortable asking for the help we needs and understanding out position through a financial lens in order to improve our position. That simple.
You can’t Make Yesterday Jealous if you aren’t able to conquer tomorrow. So prepare yourself (or your business) for the next step by investigating your truth – in dollars, making essential information clear and then implement a plan so you can be sure that each new day will be better than the one before.