This is part 3 of a series about the compass points that I use as the true north for any business. In the first 2 episodes in this series we covered how to make progress and the things that can get us caught in the weeds, and in last week’s episode we discussed strategic simplicity and some of the more common things in this cultural moment that can keep us mired in needless complexity.
Which brings us to the topic of today’s episode, the one most service-based business owners, myself included, would rather put their heads in the sand over than talk about! Businesses should be financially beneficial to those who run them and work within them.
Here are the top 3 common issues around money that I want to get to today:
1) We tend to over-give and under-receive which creates Chronic insufficiency, often experienced as underearning.
2) We usually do not know how much we need to earn and therefore we do not know what we need to charge (meaning we don’t have informed pricing or financial planning for our businesses).
3) We do not set up systems so that finances are tracked and taken care of; and then we wind up short when it comes time to pay taxes, take a vacation, or take some sick or personal time off. OR we simply don’t know where all the money goes and why we don’t feel like we’re earning enough even though our revenue numbers look pretty good.
If you can relate to some or all of these, you are not alone! I see this over and over again when I work with very small business owners. And of course, I have done all of these things myself. I came to financial recovery work the hard way.
SHOW NOTES:
Financial Recovery Institute: https://www.financialrecovery.com/
Wealth Addiction by Phillip Slater: https://www.thriftbooks.com/w/wealth-addiction_philip-slater/451973/#edition=2213787&idiq=10966918
Underearner's Anonymous: https://www.underearnersanonymous.org/
Earn What You Deserve by Jerrold Mundis: http://www.randomhousebooks.com/books/118580/
Overcoming Underearning by Barbara Stanny (Huson): https://www.goodreads.com/en/book/show/682878.Overcoming_Underearning
Profit First by Mike Michalowicz: https://mikemichalowicz.com/profit-first/
Profit First Professionals https://profitfirstprofessionals.com/hire-pfp-form/
Xero: https://www.xero.com/us/
