Believe it or not, tracking the flow of money is not about “paying your fair share” of taxes to the government. It’s really meant for you to understand your business better so that you can:
• Make better decisions
• Take better actions
• Measure your results so that you grow your business
• Keep more money
You can influence your customers.They need to like you and feel like they need or want what you sell. That’s what turns them into prospective customers or leads.
You are also able to influence how many prospective customers (leads) you get by telling your story. And when you get really good at telling your story, some of those leads will convert to customers.
Continue to tell your story and you might be able to get your customers to buy more often. That’s revenue. But what about actually making and keeping money?
Unlike the wind, money moves in very specific ways. But it also comes down to money that you owe to someone or money that someone owes you. When you owe money... you get a bill, you make a payment and there’s a withdrawal from your account. When someone owes you money...
There’s three ways to use money or cash in your business. You can use money to finance your business, invest in your business or operate your business.
• Financing cash is money that belongs to someone else that needs to be paid back.
• Investing cash is money that is used to buy things like buildings or equipment for your business.
• Operating cash is generated from your core business activities
The Right Tools? Integrate and Automate your money - but don’t touch it! You make a sale and you pay your bills. How do you collect money when you make a sale? Is it through Etsy? Venmo? PayPal? Stripe? Square? All of those? How are you tracking money in your business?
John loves to coach folks in Milwaukee's creative community - from makers to freelancers - so that you'll understand the "business" part of what you do.