What are my bottom-line financial needs and what’s my plan to meet them?
Because you want to know what’s a HUGE source of unneeded stress?
NOT KNOWING what your financial situation actually, specifically, is.
Now, I get it… sometimes KNOWING feels like the stressful part.
But if you can be gentle with yourself (or have a gentle guide supporting you), and have some chocolate handy, facing the numbers can be an empowering experience that will give you more control over your future (note that I said more control, not total control).
First, I definitely know some people who are stressed out and feel like they’re in financial ruin when they’re just not.
I’ll admit I totally freaked out when this first hit and I hadn’t run my exact up-to-date numbers and cash flow statement yet (more on how to do that in a moment).
Yes, your profits may be down, but that doesn’t mean you’re about to be out on the streets (god-willing).
Knowing what your runway is (how many months of cash, savings, possible loans) can provide a huge amount of security and anxiety reduction.
And if you are seeing a big dip in your revenues, knowing the numbers is even more important.
Because there are a few things I believe you need to have in order financially in order to sustain yourself and thrive in the long-run.
Now first – I want to say this:
Though we truly are on a roller coaster ride of uncertainty, there are MANY opportunities in the marketplace, and LOTS of people who are still spending money.
Please don’t fall into the trap that no one is buying right now. It’s simply not true.
I want you to hold the possibility that your business could do even BETTER this year. Be open to it!
I’ve written and taught elsewhere about how we may need to do some reframing, re-messaging and restructuring (and even recreating) of our offers, but it’s all possible to do if we listen closely to ourselves and our ideal clients, go slowly, and focus on serving. #slowdownandserve
Back to money –
Ok, so how do we get REAL with our money?
Here’s what’s needed:
1. Get super clear on your baseline financial needs (this is a family conversation if you’re partnered or share resources). What do you spend each month? How has this changed given that there are actually plenty of things you CAN’T spend money on right now (instant savings!). I like having TWO budgets… the Baseline Budget, and the Abundance Budget (because like I said, it’s all possible).
2. Know your cash position. In other words, how much money is in the bank? Where are you actually at? What expenses and income are already known for the month and few months ahead? Recurring payments and fees?
3. Make a Profit Plan. This is a where you map out all your offers, prices and what you need to sell month by month, in order to meet both your Baseline Goal and your Abundance Goal. This may include designing a new offer, or restructuring current ones.
4. Create a Contingency Plan. Yes, please hold out all possibility of things going well. And, creating a backup plan is only the responsible thing to do. You need to know what expenses you may need to cut now, and what expenses you might cut in the future if revenues went down. You need to know where you might pull money from or borrow from if you need to. You need to look into what loans, grants or unemployment you may qualify for.
This may sound like a lot, and if your heart is racing right now, just put a hand over your chest and breath.
It can seem scary to get real about your numbers at first, but if you’re clear on what you need, you can work toward that goal and not drive yourself crazy with unknowns.
And, of course, I would LOVE to support you to do this. Like it would truly make me so happy!
If you didn’t already hear about it, I’m offering the Resilience Retreat for Women Entrepreneurs next Wednesday and Thursday morning, and the entire 3 hours on Thursday is devoted to this.
We’ll spend the first day in a guided trust and abundance meditation, time outside, and getting clear on your strategic next steps, so you’ll be well-positioned to dive into the money stuff on day 2. This is a 4-spreadsheet job, and I got you covered.
Sign up for the retreat and you’ll receive all the guidance and materials you need to create financial clarity in your business now, AND anytime in the future.