Valuable Finance Skills For Small Business Owners

Small business owners, are you making this #1 small business mistake?  Find out!

Many small business owners find financial management intimidating, overwhelming, and time-consuming. Math was never their strong suit and finances have always been a source of stress and confusion. Or, they’re comfortable with finances, but managing them feels like a full-time job. Sound familiar?

You’re not alone.

“Fear of finances” is a common issue among small business owners. But here’s the good news: you can learn how to consistently and efficiently track and manage the profits and losses of your business… and take back control!

“But why can’t somebody else worry about the numbers and let me focus on what I’m good at?”

That’s a valid point, but here’s the thing: No matter what your area of specialization, how big you get, or how many people you can afford to hire, if you’re a small business owner, understanding your finances is CRUCIAL.

Otherwise, your business could stagnate, or worse, fail.

It’s impossible to grow your business if you have negative cash flow, unmanageable debt, or your company loses a lot of money each month.

You need to have a handle on the day-to-day or your business could get into trouble.

Sure, you can hire somebody to handle some of the more complex aspects of accounting and do your tax returns, but every small business owner needs to cultivate essential finance skills. If not, they can face:

• Cash flow struggles
• Mounting debt
• Limited growth

Here are just some of the ways building a sound financial management system can help you:

• Improve cash flow: Track and manage your cash flow to better anticipate and plan for market fluctuations.
• Make smarter decisions: Make informed financial decisions.
• Reduce administrative burden: Reduce the time and effort you devote to managing your finances.

Unfortunately, many business owners don't realize how important financial management is until it's too late. They end up scrambling to find all their expenses, or worse, they run out of money altogether.

Building a financial management system that works for you will remove your anxiety around finances and empower you to take charge.

Effective financial management is essential for the success of any small business.

With a solid financial management strategy, you'll be able to efficiently manage your cash flow, boost profits, and stay ahead of tax season. Plus, you'll learn how to cut costs and prepare for any unexpected bumps in the road.

I know what you’re thinking: “That’s sounds great – but I don’t know where to start.”

That’s why I’ve created Valuable Finance Skills for Small Business Owners – so you can build a financial management system that improves cash flow, keeps your personal and business finances separate, and helps you to analyze balance sheets, P&L statements, cash flow statements, and more! You’ll have the tools to manage your finances and gain peace of mind.

And the best news is, you can start the course right away!

This is an 8-module course I put together to take you step-by-step through the essential finance skills that every small business owner needs to develop. I’ll show you not only how to get started, but I’ll also show you how to…

• Establish a pro-finance mindset
• Separate your personal and business finances
• Apply basic bookkeeping best practices
• Interpret your balance sheet, P&L statement, and cash flow statement
• Create a picture of your business’s finances

However, I won't stop there…

Valuable Finance Skills for Small Business Owners will also teach you how to:

• Establish a mindset around financial management that will motivate you to stay on top of your numbers so that you can grow a profitable business.
• Recognize the importance of keeping personal and business finances separate and start that process immediately.
• Apply basic bookkeeping best practices and implement a bookkeeping system in your business.
• Interpret the most important elements of a Balance Sheet, P&L Statement, and Cash Flow Statement so you can assess your business’s financial health.
• Create a picture of your business’s finances moving forward so you can make informed decisions about strategies and tactics that will impact your numbers.
• Ensure there’s a balance between how much money you personally need and what your business can provide.
• Apply the information you’ve learned about your finances to assess your business’s health and create an action plan for making it even more robust.
• Identify the actions you need to take next that will also motivate you to implement what you learned in the course.

You’ll have everything you need to make informed decisions about every aspect of your business and watch it thrive.

Valuable Finance Skills for Small Business Owners Content:

Introduction

Module 1 – The Impact of Financial Management on Your Business Success

Module 2 – Is It Personal or Is It Business?

Lesson 1: Keep Your Finances Separate

Lesson 2: Identify Your Business Expenses

Module 3 - Set Up Your Financial Systems

Lesson 1: Essential Bookkeeping Practices   

Lesson 2: Select and Start Using Bookkeeping Software

Module 4 - The 3 Key Reports You Need to Understand

Lesson 1: The 3 Financial Reports that Tell All

Lesson 2: How to Interpret Your Balance Sheet

Lesson 3: How to Interpret Your Profit & Loss Statement

Lesson 4: How to Interpret Your Cash Flow Statement

Module 5 - Manage Your Finances Moving Forward

Lesson 1: Forecast Future Sales

Lesson 2: Estimate Expenses

Lesson 3: Create a Budget for Your Business

Module 6 - What About You?

Lesson 1: Calculate Personal Expenses

Lesson 2: What If Your Personal Income is Not Enough?

Module 7 - Take Stock and Outline a Plan

Lesson 1: The Numbers That Tell You ‘How’s Business?’

Lesson 2: Create Your Financial Action Plan

Module 8 – Summary and Next Steps

In this course you will learn:

Did you know that about 60% of entrepreneurs and small business owners go bust within the first few years of starting?  

Learning valuable small business finance skills is a crucial part of navigating those treacherous waters to the point of smooth sailing. 

They're also the skills that ensure those businesses can continue to thrive over time.

When entrepreneurs and small business owners have a firm grasp of their finances, they're able to:

• Understand their bookkeeper or accountant - "So that's a business expense, gotcha."
• Question what's going on in their business -"We've spent $3,000 on pink fluffy paperclips? What's that about?"
• Improve their cash flow and increase their profits - No wondering if there will be enough money to pay the bills.
• Manage any financial risks - When you know what's risky or not, you can take steps right away to mitigate them.
• Make strategic decisions and action plans that drive their business growth - "It looks like our biggest clients are consistently late paying their invoices, so let's consider a retainer option as an alternative." Or, "Our biggest profit margin is coming from our online sales of red oven mitts. Let's see how we can put more marketing budget towards those and create similar products."

Key benefits from this course:

Taking the Valuable Finance Skills for Small Business Owners course offers several key benefits that can significantly impact the success and sustainability of a business. Here are some of the advantages:

1. Improved Financial Literacy:  One of the primary benefits is the substantial increase in financial literacy. Understanding basic financial concepts such as cash flow, profit margins, and financial statements allows business owners to make more informed decisions.

2. Better Financial Management:  With enhanced knowledge comes the ability to manage the business's finances more effectively. This includes budgeting, forecasting, and managing debt, which are crucial for maintaining a healthy cash flow and ensuring the business's long-term viability.

3. Informed Decision Making:  A solid grasp of finance helps entrepreneurs analyze opportunities and risks more effectively. This means making informed decisions about investments, expansions, or scaling back, based on a clear understanding of the financial implications.

4. Increased Confidence: Knowledge dispels fear. Understanding the financial aspects of running a business can significantly boost an entrepreneur's confidence in both day-to-day and strategic decision-making.

5. Enhanced Communication with Financial Stakeholders:  The course equips business owners with the language and skills needed to communicate more effectively with investors, lenders, and accountants. This can lead to better relationships and, potentially, more favorable terms in financial dealings.

6. Strategic Planning and Growth:  With a strong foundation in finance, small business owners can plan more strategically for growth. They can identify profitable ventures, allocate resources efficiently, and set realistic financial goals.

7. Risk Management: Understanding finance includes understanding risk. Entrepreneurs can learn to identify potential financial risks before they become problematic and implement strategies to mitigate these risks.

8. Competitive Advantage:  In a competitive marketplace, having robust financial skills can provide a distinct advantage. It allows for smarter pricing strategies, cost management, and investment in growth opportunities that others may overlook.

9. Personal Financial Security: The skills learned in the course are not just applicable to the business. They can also improve an individual's personal financial management, leading to better financial security and peace of mind.

For small business owners, investing time in the Valuable Finance Skills for Small Business Owners course is not just about managing their business better. It's about setting a foundation for sustained growth, resilience in the face of financial challenges, and ultimately, achieving their business and personal financial goals.