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F53-068: What Should Business Owners Focus On First
Show Summary:
Today's show is about what should a solopreneur or a small business focus on first. I often don't talk about startups and this doesn't necessarily apply to that but I think it's something really important for a startup or a solopreneur. A solopreneur is basically a one-man wrecking crew.
Focus on CASH
So the first thing to focus on is cash. I don't run into too many businesses that are in trouble and have a healthy cash flow. However, that's not to say that you're running a good business if you have a healthy cash flow. These two are not mutually exclusive but they cash could be an indication that you're doing something right, that your products or services are received in the market, you're making money, and you don't have really thin margins.
1. Save cash.
For startups or existing businesses, you have to save cash. I know this is really hard for a lot of people because they want to pour every single dollar back into the business but I believe in the Profit First model.
The Profit First Model
In its simplest form, it means that when $100 comes in, you automatically set aside a certain percentage of it that goes to a savings account so you save cash for your business. Then have another account for your business taxes. Therefore, your $100 gets sliced up immediately.
The Advantages of a Profit First Model:
It allows you to see how much cash you have and you will always have cash on hand to weather any storm such as if you lose a big contract or if business is slow for month. Whatever that looks like, you know you're able to handle that from cash.
Obviously, driving more sales is another way to top into that. But what that looks like for you and your business is a whole another topic specific to your business.
2. Manage your expenses.
This is important because expenses literally take away your cash. You may not think your extra $25 a month cellphone bill is a big deal but when you add that up over a year and you're diligent with your money and have it in your savings account, that is cash in the bank.
Cash Is King
Hands down, cash is the number one thing to focus on. During a recent networking event, someone asked me about what I'm doing and who I'm working with as well as some of the big struggles I see. And they asked me what to focus on first.
So if you're generating cash for your business, you are doing something right. You should be excited and you should be proud of yourself. However, you have to be aware that it may dry up so you need to have things in place to account for slower times. But whatever you're doing to generate that cash, pour a little fuel on that fire and generate more.
Cash is king.
It will always be king. It is going to be king if you need to ever get financing or if you ever need to get an investor or when the customer you thought had went south and there are problems.
Be honest with yourself and look at your account, personal or business. If there's cash in there, then it just reduces a level of anxiety just by seeing it in there and knowing you have it. It allows you to not be needy.
Books, People, & Resources:
I'm researching former professional athletes and how they transition from being an athlete or a new lead athlete into the "real world." I'm interested in hearing about their struggles, their challenges, roadblocks, successes, and everything in between. Sports has always been a big part of my life. I love them. I have a special interest in athletes and specifically the ones that have competed at the highest levels. Do you know anyone like that? If so, I'd love to hear from them or maybe it's even you. Shoot me an email at [email protected].
eye9design - A boutique web design and WordPress agency that just celebrated 10 years in business (an eternity in the web design space). They built hundreds of websites for businesses of all sizes. Finding a web design company is hard. There are lots of options, lots of good ones but lots of bad ones. Let the team at eye9design take care of you. If you need a great website for a great price, visit www.focus53.com/eye9. Mention this ad and get 10%.
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By Ryan Ayres: Business Coach and StrategistShow Summary:
Today's show is about what should a solopreneur or a small business focus on first. I often don't talk about startups and this doesn't necessarily apply to that but I think it's something really important for a startup or a solopreneur. A solopreneur is basically a one-man wrecking crew.
Focus on CASH
So the first thing to focus on is cash. I don't run into too many businesses that are in trouble and have a healthy cash flow. However, that's not to say that you're running a good business if you have a healthy cash flow. These two are not mutually exclusive but they cash could be an indication that you're doing something right, that your products or services are received in the market, you're making money, and you don't have really thin margins.
1. Save cash.
For startups or existing businesses, you have to save cash. I know this is really hard for a lot of people because they want to pour every single dollar back into the business but I believe in the Profit First model.
The Profit First Model
In its simplest form, it means that when $100 comes in, you automatically set aside a certain percentage of it that goes to a savings account so you save cash for your business. Then have another account for your business taxes. Therefore, your $100 gets sliced up immediately.
The Advantages of a Profit First Model:
It allows you to see how much cash you have and you will always have cash on hand to weather any storm such as if you lose a big contract or if business is slow for month. Whatever that looks like, you know you're able to handle that from cash.
Obviously, driving more sales is another way to top into that. But what that looks like for you and your business is a whole another topic specific to your business.
2. Manage your expenses.
This is important because expenses literally take away your cash. You may not think your extra $25 a month cellphone bill is a big deal but when you add that up over a year and you're diligent with your money and have it in your savings account, that is cash in the bank.
Cash Is King
Hands down, cash is the number one thing to focus on. During a recent networking event, someone asked me about what I'm doing and who I'm working with as well as some of the big struggles I see. And they asked me what to focus on first.
So if you're generating cash for your business, you are doing something right. You should be excited and you should be proud of yourself. However, you have to be aware that it may dry up so you need to have things in place to account for slower times. But whatever you're doing to generate that cash, pour a little fuel on that fire and generate more.
Cash is king.
It will always be king. It is going to be king if you need to ever get financing or if you ever need to get an investor or when the customer you thought had went south and there are problems.
Be honest with yourself and look at your account, personal or business. If there's cash in there, then it just reduces a level of anxiety just by seeing it in there and knowing you have it. It allows you to not be needy.
Books, People, & Resources:
I'm researching former professional athletes and how they transition from being an athlete or a new lead athlete into the "real world." I'm interested in hearing about their struggles, their challenges, roadblocks, successes, and everything in between. Sports has always been a big part of my life. I love them. I have a special interest in athletes and specifically the ones that have competed at the highest levels. Do you know anyone like that? If so, I'd love to hear from them or maybe it's even you. Shoot me an email at [email protected].
eye9design - A boutique web design and WordPress agency that just celebrated 10 years in business (an eternity in the web design space). They built hundreds of websites for businesses of all sizes. Finding a web design company is hard. There are lots of options, lots of good ones but lots of bad ones. Let the team at eye9design take care of you. If you need a great website for a great price, visit www.focus53.com/eye9. Mention this ad and get 10%.