You’re a business owner, you have no one to answer to. You make the decisions, but have you got the right money mindset? It’s important for your business for you to stay in control of your finances. Having the right money mindset can be the difference between your business failing and your business succeeding.

Remaining motivated and focused is vital for your business. You must be confident about your business model and passionate to achieve your goals, whilst staying strong when it comes to your finances.

Don’t just treat your business as a job. Look at the bigger picture. What do you want to achieve from your business? It may be a 6 figure income, or it may just be more freedom to spend time with family and friends. Whatever your ‘why’ is, you need to focus on it.

Developing an entrepreneurial mindset will boost your confidence and providing you have the right balance you will be able to make important business decisions and not be scared to take risks in order to get to your end result. Setting goals for your business and putting steps in place in order to achieve them is crucial for your business. 

Many business owners assume that if their business is making money then it’s profitable and sustainable. Realistically this isn’t always the case. Having a good flow of cash coming into your business is essential for your business to be successful in the long term. There are ways you can improve this, why not ask the help of a bookkeeper?

Here’s some steps you can take to change your money mindset…

• Forgive the past
• Think about how you feel about money
• Don’t compare yourself to others
• Form better habits
• Set budgets
• Monitor your progress

Forgive the past

We develop our money mindset from a young age. The relationship we have with money stems from our childhoods. You may think this seems pretty deep, but it really is true!

If you’ve had situations with bad debt in your life, it doesn’t mean that it’s going to be this way forever, things can change and you can make it different.

We can change the relationship we have with money. If you’ve had a negative money mindset in the past it will take a lot of effort to change this around. But, if you want your business to be a success you must take action.

Emotion

You may not think it but everyone has an emotional attachment to money. Whether that be love or hate, we all feel different feelings when it comes to money. Money isn’t everything but it really helps the world go round. Considering how you feel about money, what you would do without it, what you would do with it, write down how it would make you feel. You need a true understanding of various situations in order to improve your money mindset.

Comparison

Comparing yourself to others is the worst thing you can do. Everyone and every business is different. Feeling jealous over someone else's situation can eat you up inside and destroy your relationship with money. Focus on what you want your relationship with money to look like. Don’t consider anyone else’s success, this is your own journey.

Form better habits

If you’re the type of person who likes to spend a lot, write down what you spend each month and mark down whether each outgoing is essential. If you total up how much you spend on pointless things it may surprise you! Think about areas of your business that you could invest this money in. Putting back into your business will make it more profitable in the long run. If you’re the type of person who uses their overdraft on a frequent basis and treats credit cards as monopoly money, you will be in a vicious circle to get out of that bad debt.

Set Budgets

Write down your monthly incoming and outgoings. Are you overspending? Set a budget and try your best to stick to it. We know the unexpected sometimes happens and that’s fine but having a budget with a contingency for these things will put you in a better position with your money.

Monitor your progress

In order to improve your money mindset you need to reflect on how far you’ve come. Before you make any changes write down your feelings about money and what you would like to change. Make action points of how to change the way you feel about money. Review how far you’ve come in the next quarter. The feeling over progression will only motivate you more!

If finances aren’t your speciality and you find it hard to budget and save. Speak to a bookkeeper like us. With the help of cash flow forecasting and management accounts we can help your business to flourish and help you to change your money mindset.