I want to shout it from the roof tops. This is what entrepreneurs do and you can to. Just get out of your own way! This approach is at the very heart of what I do and teach.
For most of us, it starts when we are children. The minute you are given an allowance, whether tied to chores or not, you are told to save more, spend less.
You are quietly being trained to be an employee. To be budget driven. To spend less than you make. While there is certainly value in both of these, you are also being taught to accept what others set as your worth. You are encouraged to get a job mowing lawns or babysitting but then told you can’t charge too much. Another lesson in letting others determine your value (low?) and setting you up to be an (underpaid) employee.
Very few are taught from an early age to be an entrepreneur (I wasn’t) and fewer still intuitively see the world from the entrepreneurial mindset. Those who are taught early or have the innate vision clearly have a head start. The rest of us have to figure it out. Even though my father was an entrepreneur, he believed that being employees was right for his daughters. We were raised to work hard, do as we were told, let others determine our value and be employees. But why not work hard, produce results for others, determine our own worth, be an entrepreneur and have a business we love? Yes there are risks, but no matter what path you choose in life, there are risks.
I have discovered that business owners by and large are craftsmen. Very good at knowing their craft, but not reared to be entrepreneurs and for the most part knowing very little (if anything) about running a business. They have purpose. They have passion. What don’t they have? Training in entrepreneurship and what it takes to have a business that thrives.
The BIG THREE skills entrepreneurs need in order to have a business they love are marketing, operations management, and financial savvy. The really good news here is that ALL OF THIS CAN BE LEARNED. The skills that it takes to be an accomplished craftsman are much more complex than what is needed to be a good business owner. (Did you know that?)
I have met hundreds of entrepreneurs who struggle with understanding how to think like an entrepreneur when it comes to their money. Gaining financial savvy is much easier to do than most people believe. Remember, you were not taught this growing up. Think back to a time when you were learning your craft or something new and it seemed so complex that you thought you would never get it. At first it seems overwhelming but gradually you start to grasp each one of the smaller concepts until one day the light bulb bursts into dazzling radiance and you see how all the pieces are puzzled together. Financial literacy occurs the same way. Small bits of understanding that fit together to create a bigger picture.
Making money and managing it functions differently for the business owner than it does for employees. One very important difference is that employees rely on someone else to set a monetary value for their time and the entrepreneur sets their own value. It is hard for the employee to drive their financial goals without using the golden rule of spending less than you make.
Only the entrepreneur truly has the power to set their own revenue goals. While it is true that the entrepreneur needs to stay competitive when it comes to pricing, it is equally true that we can charge as much as our customers’ perceived value to be. I remind you of this… when a customer tells you the price is too high it is NEVER about the money but about the value of your product or service to them. I don’t own any Dior, Hermes or Louis Vuitton handbags. Frankly, I will never see the value of them but there are people who do.
In order to make more money and like it, we must have a clear idea of (1) how much we need to create and (2) how to actually create it. Ultimately, you do have to spend less than you make in order to build a financial future but when you make your income a priority that gets a whole lot easier to do.
Financial savvy is learned and everyone has to start someplace. Far too many people find talking about money scary and most people I have met have never done a review of their financial health. Really? You know to watch your weight. You know to get enough rest. You know to exercise. Why don’t you know that a financial review of where you are allows you to plant the right seeds in the right place that then germinate into an incredible financial future?
Why don’t you know that you have this enormous potential to create your financial future and that you can do just that? Or is it that you do know but just don’t know where to start. Okay, let me make that part easy for you. Years ago I developed a Financial Summary Worksheet and Income Calculator. While many have downloaded them (because they are free), I have discovered many don’t actually complete it. What is the point of having a great tool in your tool box if it is rusting
I want to shout it from the roof tops. This is what entrepreneurs do and you can to. Just get out of your own way! This approach is at the very heart of what I do and teach.
For most of us, it starts when we are children. The minute you are given an allowance, whether tied to chores or not, you are told to save more, spend less.
You are quietly being trained to be an employee. To be budget driven. To spend less than you make. While there is certainly value in both of these, you are also being taught to accept what others set as your worth. You are encouraged to get a job mowing lawns or babysitting but then told you can’t charge too much. Another lesson in letting others determine your value (low?) and setting you up to be an (underpaid) employee.
Very few are taught from an early age to be an entrepreneur (I wasn’t) and fewer still intuitively see the world from the entrepreneurial mindset. Those who are taught early or have the innate vision clearly have a head start. The rest of us have to figure it out. Even though my father was an entrepreneur, he believed that being employees was right for his daughters. We were raised to work hard, do as we were told, let others determine our value and be employees. But why not work hard, produce results for others, determine our own worth, be an entrepreneur and have a business we love? Yes there are risks, but no matter what path you choose in life, there are risks.
I have discovered that business owners by and large are craftsmen. Very good at knowing their craft, but not reared to be entrepreneurs and for the most part knowing very little (if anything) about running a business. They have purpose. They have passion. What don’t they have? Training in entrepreneurship and what it takes to have a business that thrives.
The BIG THREE skills entrepreneurs need in order to have a business they love are marketing, operations management and financial savvy. The really good news here is that ALL OF THIS CAN BE LEARNED. The skills that it takes to be an accomplished craftsman are much more complex than what is needed to be a good business owner. (Did you know that?)
I have met hundreds of entrepreneurs who struggle with understanding how to think like an entrepreneur when it comes to their money. Gaining financial savvy is much easier to do than most people believe. Remember, you were not taught this growing up. Think back to a time when you were learning your craft or something new and it seemed so complex that you thought you would never get it. At first it seems overwhelming but gradually you start to grasp each one of the smaller concepts until one day the light bulb bursts into dazzling radiance and you see how all the pieces are puzzled together. Financial literacy occurs the same way. Small bits of understanding that fit together to create a bigger picture.
Making money and managing it functions differently for the business owner than it does for employees. One very important difference is that employees rely on someone else to set a monetary value for their time and the entrepreneur sets their own value. It is hard for the employee to drive their financial goals without using the golden rule of spending less than you make.
Only the entrepreneur truly has the power to set their own revenue goals. While it is true that the entrepreneur needs to stay competitive when it comes to pricing, it is equally true that we can charge as much as our customers’ perceived value to be. I remind you of this… when a customer tells you the price is too high it is NEVER about the money but about the value of your product or service to them. I don’t own any Dior, Hermes or Louis Vuitton handbags. Frankly, I will never see the value of them but there are people who do.
In order to make more money and like it, we must have a clear idea of (1) how much we need to create and (2) how to actually create it. Ultimately, you do have to spend less than you make in order to build a financial future but when you make your income a priority that gets a whole lot easier to do.
Financial savvy is learned and everyone has to start someplace. Far too many people find talking about money scary and most people I have met have never done a review of their financial health. Really? You know to watch your weight. You know to get enough rest. You know to exercise. Why don’t you know that a financial review of where you are allows you to plant the right seeds in the right place that then germinate into an incredible financial future?
Why don’t you know that you have this enormous potential to create your financial future and that you can do just that? Or is it that you do know but just don’t know where to start. Okay, let me make that part easy for you. Years ago I developed a Financial Summary Worksheet and Income Calculator. While many have downloaded them (because they are free), I have discovered many don’t actually complete it. What is the point of having a great tool in your tool box if it is rusting away?
Are you ready to start?
Step #1: Download the Financial Summary Worksheet and the Income Calculator.
Step #2: Gather up the information you need to fill out the worksheet. It does not need to a marathon. Plan on spending 20 minutes a day first thing in the morning over the next several days. Completing the financial review allows you to discover what is currently true for you. If you don’t know the answers, find them out. This is a one size fits most so some of the questions may not apply to your situation. I will say that of all of the steps, this one that feels hardest. Do it anyway and do it NOW. Since it only reveals what is already true, don’t you think it’s time to shed some light on it?
Step #3: Next open up the Income Calculator and calculate your revenue goals based on what you discover from the Financial Summary Worksheet.
Finally (whew)… you are in place where you can design a revenue strategy that supports your numbers. This is NOT about saving more and spending less. It is about MAKING MORE.
To have a business you love you need one that allows you to do what you love, to work with and for people you like and to achieve your financial goals. If you need help in designing a revenue strategy tailored to your business or in creating any systems or structures that support profitability, call me! This is my area of genius! It might be the best investment in your future you will ever make!
