4 Common Money Problems In Business And How To Solve Them
Aimee Cerka
Money Confidence Coach & Bookkeeper - Host Your Money Your Life Podcast ?? Making Money Simple For Small Business Owners through Budgeting, Money Mindset, and Bookkeeping with a blend of strategy and emotional support
Let’s talk about a quick strategy to implement and move forward with your finances on the offensive side aka making money.
We’ll discuss the four most common problems entrepreneurs face in their businesses and provide solutions for each one. Whether you’re stuck in the feast or famine cycle, on the hamster wheel, trading time for dollars, or feeling too overwhelmed to manage your finances, I’ve got you covered.
I’ll share resources and action steps you can take to make positive changes in your business finances. Tune in to start seeing results and creating unstoppable finances.
Feasts or Famine? Finding Financial Stability
We've all been there—one moment, your bank account is overflowing, and the next, you're wondering where all the money went. This feast or famine cycle can be exhausting and demoralizing, but it doesn't have to be your reality.
Inconsistent income is a common issue, especially for entrepreneurs who depend on launches to bring in significant cash flow. You might have experienced an incredible launch, only to find yourself scraping by a few months later.
Imagine the peace of mind that comes with knowing your finances are stable, regardless of the time of year or the success of your latest launch.
One quick strategy to combat this is to stop spending directly from your bank account.
Instead, implementing a percentage-based budgeting system like my Prosperity Simplified can make a world of difference. By allocating percentages of your income to different categories, you create a buffer that smooths out the highs and lows, ensuring you have funds available when you need them.
This allows you to maintain stability without constantly checking your bank balance or panicking during lean months.
Breaking Free from the Hamster Wheel
Does it feel like you’re constantly on a hamster wheel, running endlessly without getting anywhere? Bringing in more clients to make more money, only to find yourself exhausted and unable to keep up, is an all-too-common problem.
One of the most liberating steps you can take is to stop waiting for "the perfect moment" to make changes. Whether it's hitting six figures or finally wrapping up a never-ending project, these milestones often feel like moving targets that perpetually keep you in a state of busyness and burnout.
Why not make the change now?
Start by auditing your expenses. You’d be surprised how much "small" subscriptions and unused software can add up over time. Cutting out these unnecessary costs can free up revenue that you can either reinvest into your business or finally pay yourself what you deserve.
Additionally, take some time to design the business you want. Write down your ideal working hours, the type of clients you want to attract, and the kind of projects you love. Even small adjustments in your daily operations can lead to significant changes in your overall workflow and mental well-being.
Time for Money: Shifting Your Income Model
The traditional nine-to-five mindset can be a tough one to break, but if you're still trading hours for dollars, you're limiting your potential income.
The belief that more work equals more money doesn’t hold up in the entrepreneurial world, and it’s crucial to shift this mindset to achieve financial freedom.
Consider exploring alternative revenue streams that don't rely on a direct exchange of your time for money. Instead of one-on-one coaching, you could offer a group program or sell a course where your initial time investment can continue to pay dividends.
Think about this: what if you could free up your time without sacrificing income? What would that independence mean for you and your business?
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It might feel risky or outside your comfort zone to move away from traditional coaching or consulting formats, but creating something like a membership site or a DIY course can diversify your income.
These models allow you to serve more people simultaneously, maximizing your impact without increasing your hours.
Overcoming the "Too Busy" Trap
Finally, the trap of feeling "too busy" to look at your finances is one of the most detrimental to long-term success. If you’re always putting off financial reviews or bookkeeping because you’re too caught up in day-to-day operations, it's time to change your approach.
First, break your financial tasks into bite-sized steps. Instead of an overwhelming task like "update bookkeeping," consider breaking it down into smaller, more manageable actions, such as "categorize expenses for January."
This approach makes daunting tasks more digestible and increases the likelihood that you’ll actually check them off your to-do list.
Another great tip is to schedule regular financial reviews into your calendar, treating them like any other important meeting. Allocating consistent, dedicated time to manage your finances ensures they don’t slip through the cracks. And if it all feels too overwhelming, don’t hesitate to hire help.
Bookkeeping services or financial advisors can provide the support you need to stay on top of your business's financial health, even during your busiest times.
These actionable strategies can help transform your financial management from a chaos-driven process into a streamlined, stress-free routine. By focusing on stabilizing your income, breaking free from unproductive cycles, shifting to scalable income models, and overcoming the "too busy" mentality, you can create a more balanced, prosperous business.
Try implementing one of these tweaks today and watch how quickly it can make a difference in your financial peace of mind. Reach out to me if you need more personalized assistance. Let’s create unstoppable finances together!
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