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Why Do Business Owners Find It Difficult to Manage Money
In this episode 197 of "Small Business Talk with Cathy Smith," guest Amy Bett we discuss the challenges business owners face in managing money. Amy, a profit first professional and founder of Ladies Without Limits, helps business owners take control of their finances. She emphasizes that although many business owners initially focus on their product or service, understanding and making informed financial decisions is crucial as their businesses grow. Amy shares her personal experience of failing in her own business before becoming a profit first professional, reassuring business owners that managing money is not as difficult as it seems. She encourages them to seek support and learn simple systems to gain confidence in their finances.
Cathy and Amy discuss the profit first method by Mike Michalowicz, which involves separating cash flow into different bank accounts for income, expenses, taxes, profit, and owners' pay. This method provides better visibility of available funds and prevents overspending. They also highlight the importance of financial reports, such as profit and loss statements and balance sheets, in understanding business performance. Amy advises starting with small steps, like setting aside money for taxes, and gradually learning how to read and analyse financial reports.
The significance of averages in managing business finances is discussed, as they provide a clearer picture of income and expenses over time. Amy suggests using accounting software for financial organisation and informed decision-making. Planning for taxes and other financial obligations is emphasized to avoid last-minute stress. They also mention the relationship between money management and an abundance mindset, emphasizing the positive impact of being in control of finances.
To learn more about Amy and her work, visit her website at amybett.com. This episode provides valuable insights and practical tips for business owners struggling with money management.
Episode 197 Small Business Talk With Business WIth Cathy Smith Brought to you by CATCO Enterprises.
Support the show: https://smallbusinesstalk.com.au/
See omnystudio.com/listener for privacy information.
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By Cathy Smith
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In this episode 197 of "Small Business Talk with Cathy Smith," guest Amy Bett we discuss the challenges business owners face in managing money. Amy, a profit first professional and founder of Ladies Without Limits, helps business owners take control of their finances. She emphasizes that although many business owners initially focus on their product or service, understanding and making informed financial decisions is crucial as their businesses grow. Amy shares her personal experience of failing in her own business before becoming a profit first professional, reassuring business owners that managing money is not as difficult as it seems. She encourages them to seek support and learn simple systems to gain confidence in their finances.
Cathy and Amy discuss the profit first method by Mike Michalowicz, which involves separating cash flow into different bank accounts for income, expenses, taxes, profit, and owners' pay. This method provides better visibility of available funds and prevents overspending. They also highlight the importance of financial reports, such as profit and loss statements and balance sheets, in understanding business performance. Amy advises starting with small steps, like setting aside money for taxes, and gradually learning how to read and analyse financial reports.
The significance of averages in managing business finances is discussed, as they provide a clearer picture of income and expenses over time. Amy suggests using accounting software for financial organisation and informed decision-making. Planning for taxes and other financial obligations is emphasized to avoid last-minute stress. They also mention the relationship between money management and an abundance mindset, emphasizing the positive impact of being in control of finances.
To learn more about Amy and her work, visit her website at amybett.com. This episode provides valuable insights and practical tips for business owners struggling with money management.
Episode 197 Small Business Talk With Business WIth Cathy Smith Brought to you by CATCO Enterprises.
Support the show: https://smallbusinesstalk.com.au/
See omnystudio.com/listener for privacy information.