Page 235 - merged.pdf

CHAPTER 8 MASTERING YOUR MONEY

Most Entrepreneurs Avoid Looking At the
Numbers…You Cannot Afford to Do The Same

So, if money is such an important matter in a business, why
do so many entrepreneurs neglect to spend enough time
on it? There are three main reasons: 1) ignorance, 2) fear
and 3) procrastination.

1) Ignorant About Money
Unfortunately, very few people are trained in money
management. Unless you studied finance or accounting in
college, it is unlikely that you would have learnt about smart
money management strategies from your parents or from
school, college or university.

In fact, many entrepreneurs I know don’t even manage their
own personal finances. They do not track their expenses, have
no idea what their net worth is and don’t plan their monthly
budgets. As a result of their poor money habits, they are
usually in debt or living from paycheck to paycheck. If these
people start a business and bring along their poor money
skills into the business, it will be doomed to fail. In this chapter,
I am going to share with you the essential basics of how to
manage your money wisely.

2) Fear of Money
With ignorance comes a fear of dealing with money. Many
business owners I talk to have a fear of constantly tracking
their sales revenue, costs and other financial numbers. They
get stressed up when they have to look at and deal with
numbers. They get nervous when they see the bills that come
in and more stressed when the sales revenue is not as rosy
as projected. “I was never good at Math,” is the common
excuse they usually give.

226 SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES