Here are some interesting questions to get you thinking about your business.
- What is your primary financial objective?
- How much money do you need to make each year to be happy about your financial results?
- What is your personal net worth right now (assets minus liabilities)?
- How much could you sell your business for today?
- What would you do with your time after selling your business?
- What would you do with the money after selling your business?
Your answers reveal a lot about where you are and where you want to go financially in your business.
I have always looked at the financial side of business as having a financial rhythm. Some businesses have a beautiful financial rhythm… and some have an ugly one. How well you manage the financial rhythm in your business says a lot about whether you achieve above average financial results.
A business with an orchestrated financial rhythm in place is a business that takes care of its owners financially.
Their profits and cash flow are strong and well managed. They are creating both value and wealth. There is a pulse, a flow, a cadence at work in the business. Beautiful music is being made.
The opposite kind of business is one that struggles financially.
They have a business whose finances are disorganized and chaotic. The music it plays sounds more like scratching your fingernails across a chalk board. There is financial chaos at work rather than a natural financial rhythm.
Implementing a Financial Rhythm
There are 3 steps to implementing a well thought out financial rhythm in your business.
You're going to be surprised at what can happen in your business (financially speaking) when you have a plan and a process to follow.
And think back to your answers to the questions about your financial objectives. Consider whether you need to make changes in your business in order to achieve those objectives.
Making money in business is good. It has nothing to do with greed. It's just smart business. Financial success is required in order to survive and thrive in business. J
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