Shifting The Mindset Of The Scaling Entrepreneur
Year after year, when offering a B2B service you will begin to see trends and similarities within the behavior and thought processes of entrepreneurs. Whether they’re just getting started in business or they’re well established (and thriving), there’s one thing they have in common. This one thing is debilitating and stunts their growth - it’s fear!
Fear of losing money. Fear of investing. Fear of never being able to make the money again. You’d think this is a mindset associated with business owner’s that are struggling to acquire steady revenue. This fear is universal in business and it grows with many along their entrepreneurial journey. I wholeheartedly believe that this stems from being misinformed or uninformed on how the financial end of things work and tie together in business. We can eliminate this fear when we’re proactive - and this will consist of investing back into your business in a strategic way that will either save you money or make more money. This is why education is our favorite thing here in Jireh Bookkeeping & Consulting.
The most discussed concern with high earning business owners, is taxes. We’re all aware that as your revenue increases and you’re in the green (making a profit), you’ll owe taxes. Literally, no one wants to pay Uncle Sam. We’d prefer to rack in the millions and spend it on things we like, at no cost to us. However, taxes is just one of those things that’s here to stay. You can’t beat them, so join them - by implementing tax strategies to lower or eliminate your tax liability. It’s a real thing. You have many high earners that pay very little to no taxes each year because they hired a professional to concoct a plan of action that will give them these results. I’ve seen an entrepreneur that was projected to pay over $70K in taxes, end up receiving a $20K tax refund. This didn’t happen by keeping his money in a tight grip.
He realized that he had to do something about it, so he made his money work for him. Paying for the accounting service that lowered the tax bill, was a tax deduction in itself. He then invested and moved his finances around as instructed. As you can see, the money will need to continue to move. Upfront, you may have to cover an expense but the return of investment makes it all worth it.
With growing entrepreneurs, cash flow can be unstable resulting in an inability to cover payroll on time. This is just one example but it’s extremely common (and scary). The entrepreneur will notice this issue but can’t find a way to solve the problem without new customers or an increase in sales. Depending on the type of business, an increase in sales and customers can place a demand on the back office and increase expenses. Does this sound like the ultimate answer? Again, here’s an opportunity to invest back into your business. An accounting professional can help you find the money gaps and ultimately help you keep your doors open. You must do something about the issues you see in your business.
Delegation is still important when feasible. The numbers are important in business, but so is marketing and bringing in contractors or employees to keep things going. If you’re overwhelmed with client demands but not quite ready to hire a full-time employee, consider a budget for a part time contractor. This is an investment back into your business. Marketing is vital and will attract more customers or clients. If you’re not gaining any traction with your DIY marketing or you’re unable to maintain it consistently, you may need to invest in marketing. These costs are also tax deductible. It’s a no brainier. It’s a simple formula that we try our best to avoid like the Bubonic Plague - you have to spend money, to make money.
Someone’s saying “What if I’m low on funds?” How can I invest? You can save over time for the things you’d like to invest in. Examine your financials and see where you can cut or eliminate costs. This makes room for you to spend wisely and toward vital aspects of your business. Being frugal is a good thing but too much of it in the wrong area is detrimental. Also, keep in mind that if you’re looking for dollar store pricing in order to do what’s needed, you’re more likely to get dollar store quality. We get what we pay for guys!
Eliminate fear by understanding the way money works in business. Let your money do the work for you.
