If you are like most business owners, you went into business because you are  passionate about AND good at WHAT you do… and you wanted the autonomy and  financial freedom of owning your own business. You were probably thinking, “as  long as I am good at what I do, how hard can it be to make a decent living and  support my family?” And you have probably discovered that it is actually harder  than you thought.

Here’s the problem…

You may be one of the 97% of small business owners who discover that although  you work incredibly hard and your sales seem to be increasing each month, you  have little to show for it financially. Perhaps you are already doing well but  you are unsure how to accelerate your results or expand your business? Or you  may simply be wondering why you are struggling to pay the bills lately even  though your accountant says that you are making a good “profit”.

One of the biggest problems is that business owners often convince themselves  that being busy is what business is all about. And you tell yourself “as long as  I work hard and do my best, there is not much else that I can do”. Everyone  knows that we’re supposed to work smarter, not harder, but the challenge lies in  knowing HOW to do that. And in the meantime, you may have found it just seems  easier to do everything…just in case it’s important, or makes a  difference.

So, if you’re supposed to do less, HOW do you figure out what is critical or  what will have the biggest impact?

In a typical 8-9 hour day, what percentage of your time and effort has a  positive and tangible impact on your bottom line? Do you strategically plan what  you will focus your time on or do you just try to cover everything on your to-do  list plus whatever emergencies pop up? The bottom line is this, if you cannot  read and understand your financials, it is difficult for you to say for sure WHY  your business is not as successful as you would like it to be. You may think it  is due to the fact that you don’t have enough customers or sales but you could  be missing the point completely. In fact, most of the businesses don’t need more  customers, they need more cash flow. And cash flow issues can often be fixed  without spending a dime on marketing.

And here’s the best part… all of the answers you need are sitting right  there in YOUR financial statements. You just need to learn how to unlock the  insights and use them to your advantage.

Every day that you put off learning how to unlock the insights in your  financials means that you are wasting at least 2-3 hours a day on tasks that are  not improving your bottom line. In fact, it could be the sole reason you are not  as successful as you would like to be.

This bad habit you have developed -of working way too hard and assuming that  success is somehow linked to the amount (not the quality) of work, will take  time to break.

Unfortunately, there are no quick fixes when it comes to breaking or  establishing new habits. In the 1960’s a highly regarded plastic surgeon, Dr.  Maxwell Maltz discovered that it took 21 days for amputees to cease feeling  phantom sensations in their amputated limb. From further observations and  significant research he established that it takes 21 days to create a new habit.  This part of the brain, the limbic system, is a slow learner.

Brain circuits take engrams (“memory traces”) and produce neuro-connections  and neuro-pathways only if they are bombarded with new information for 21 days  in a row. This means that our brain does not accept new data or information for  a change of habit unless it is repeated each day (without fail) for at least 21  days. Changing habits (whether positive or negative) can be done, but it takes  time and consistent effort.

Do yourself a favour and identify just one or two steps that you can take  each day that will enable you understand what your financial statements are  trying to tell you. Make a plan on paper – specific decisions and actions that  you can take to move forward in this aspect every single day for the next month.  Read a book, speak to your accountant, watch a webinar or spend some time  reviewing your statements and comparing the results to last year.

And remember to track your progress each day and find an objective person  outside of your business to hold you accountable to your plan, actions and  desired results.

Article Source: http://EzineArticles.com/6047921

ImagineeringNow
About The Author
Rhondalynn's life changed forever after the loss of her mother due to a senseless tragedy in 1992. She decided that despite her formal training and a promising career as a lawyer and chartered accountant, she wanted to do something more. So despite the fact she had already invested 10 years of her adult life in university and articling, she did the unthinkable. She left her high paid job as Commercial Manager for one of the largest corporations in the country, she re-trained herself in the sciences of the mind and she discovered a passion for writing and sharing her knowledge with business owners and executives. Rhondalynn has distilled the secrets to business success - that she learned from her life experience and working in GM level roles with Price Waterhouse Coopers, Max Factor, Village Cinemas, and Coles Group Ltd. - and produced a simple step-by-step process that you can apply to your business to boost your sales and bottom line. Rhondalynn can help you put strategies in place to grow your bottom line and ensure that your customers would never think of going elsewhere. She is the leading expert on harnessing the power of your brain and using it to improve your financial results in business. Rhondalynn is the author of On The Shoulders of Giants, Imagineering Your Destiny, Sobre Hombros deGigantes, Financial Foreplay®, and Sales Seduction. She has appeared on CNN, Bnet/CBS, Channel 7, Channel 9, Kochie's Business Builders and 3AW, and writes for Yahoo, MYOB, Fast Thinking, Sunday Life, Dynamic Business, Business Spectator and Australian Retailer.

1 Comment:


  • By Laney Rae 07 Aug 2011

    SO true -I would rather do almost anything than review my financials. It’s painful. Working on a solution to that right now…

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