The key factor that determines your success or failure as an entrepreneur is not your business idea, your ability to deliver or your clients. It’s your relationship with money.
As an entrepreneur the objective of your business is two-fold:
- To be a vehicle for your purpose, passion and adding value in the world.
- To create personal wealth, for you, the entrepreneur.
You may have started your business with great passion and fervour but excitement dwindles quickly when your business isn’t fulfilling the second objective. However, it is your relationship with money that determines whether you, the entrepreneur, make any money or not.
Consider that everything in life can be viewed in terms of relationships. You have a relationship with people but you also have relationships with other things – your home, your body, your car etc. And you have a relationship with money.
Your relationship with money follows exactly the same laws that apply to any relationship. It takes two to tango and it is the same with money. The way she treats you is a mirror of the way you treat her.
So how do you treat Money?
- Do you care for her, nurture her and honour the relationship that you are in with her?
- Are you careless with her, giving her very little time and attention?
- Are you even, at times, abusive with her?
Many entrepreneurs are so focused on the ‘work’ of the business and delivering to clients that they ignore the money aspect of their company and the money aspect in their own lives. And money flows very quickly out of a structure when she is ignored! The key to building a profitable business and building your own personal wealth is to form and create a strong, respectful and honouring relationship with money.
3 Ways to shift your relationship to money in your business
1. Pay yourself first
Many entrepreneurs have heard this rule, yet don’t apply it. Money is attracted to people who honour their own self-worth. Self worth leads to net worth. So pay yourself what you are worth and pay yourself first. Your business exists because of you. You are the most important part of your business and hence you should be paid before your staff or creditors.
2. Dedicate time to the money aspect of your business
Devote at least half a day a month to learning and understanding the money flows in your business. Sit down with your bookkeeper or accountant and go through your income statement. Understand the costs, which clients are costing you money and where you are most profitable.
3. Learn about Money
If you are anything like most people, you were never educated about money at school or university and often the people who did teach you about money weren’t wealthy. Read books about money or find good advisors to teach you how to handle the money in your business.
3 Ways to shift your relationship to money in your personal life
Every month save a portion of your salary into an account that is not to be touched. This develops your own personal wealth beyond that of your business.
2. Commit Time, energy and effort to the relationship which includes learning about money and how to build your own personal wealth.
3. Seek out advice or coaching on how to improve your relationship with money.
Learning about, committing yourself to and improving your relationship with money will not only shift your business to the next level, it will enable you to create the personal wealth you desire to fulfil your other dreams and goals.