“Successful people aren't born that way. They become successful by establishing the habit of doing things unsuccessful people don't like to do. The successful people don't always like these things themselves; they just get on and do them.” – William Makepeace Thackeray
What Do Small Business Owners Dread About Finances?
I’m sure you’ve seen or read a similar version of the quote above. And maybe in the past, you’ve read it and moved on with your life without giving it another thought. I’d like to take a moment to examine it and see how it pertains to running your small business.
When I talk to other small business owners, I find most people tend to have similar “things” they enjoy spending time on and “things” they dread.
THEY ENJOY...
- Meeting & engaging with existing/potential customers
- Delivering their final product/service
- Developing new revenue streams
THEY DREAD...
- Managing finances
- Legal mumbo-jumbo
- Managing internet presence
Looking at the lists above, I can certainly see a theme and why I’m hearing this. Small business owners like and believe their business will help their customers and are not afraid to pursue this goal. After all, they DID come up with the idea for the business themselves, so go figure! Doing things that take a lot of time due to lack of understanding the how takes a back seat most of the time.
How Do Small Business Owners Develop The Right Habits?
Let’s take a closer look at the dread factor for a moment. All of these items are necessary parts of any business – small and large. In fact, I’d venture to say they are the foundation.
- Without knowing where you stand financially, how can you make good on your delivery? How can you make educated business decisions?
- If you’re not set up for/on top of the legal requirements to do business, you’re going to have a bad time when Uncle Sam comes calling.
- Who do you know that lives comfortably selling door to door?
But, goodness, who has the time to learn each of those things? You might be saying “I’m one person. You can’t seriously expect me to spend the next 4-5 years taking classes to run such a small business.”
I don’t. I didn’t.
Thackeray doesn’t say we should just do everything ourselves, but rather, that we should develop a HABIT
of doing them. Let’s do a quick case study.
In my business, I manage my own finances. However, I know I lack knowledge when it comes to internet presence & navigating legal waters. So, the habit I have developed is working with subject-matter experts in that field who can advise on best practices. I use networking and professional services to accomplish this. Take some time to try out various networking opportunities available in your area. Commit to attending at least 1-2 events per month.
Important Questions to Ask About Business Finances
In addition to attending networking events, reach out to providers of
professional services
to talk through your business needs and what they can provide. In your discussions, make sure to ask about habits they’ve developed to put you at ease with their expertise. Here are just a couple questions to ask.
- How do you stay apprised of new trends/requirements in your industry?
- How do you communicate these with your customers?
- How are you looking to grow? How can I be part of that?
You’ll notice these are not yes/no questions. These are designed to evaluate the provider, but also can lead to you better understanding the services you’re paying for. Most reputable professional service providers will have no problem answering these questions as part of their initial evaluation call.
Which brings me to my last point. I would never recommend hiring a professional services provider without doing an evaluation call first. I mean, you wouldn’t hire someone internally without an interview, so why would you do that when hiring externally?
If you think you might have a need for a financial services professional, please
schedule a time here. Worse comes to worse, we end up not working together, but at least you got the chance to practice questioning!
