SIX MAJOR MONEY ISSUES FOUNDERS FACE AND HOW TO FIX THEM

Hey Founders,

Many of us know that achieving success in business can be challenging. But did you know that, according to a recent study by U.S. Bankcorp, the number one reason why most small business owners drop out is due to poor money management? Remarkably, 82% of small businesses fail due to the lack of a solid financial framework. The good news is that this issue can be easily resolved with the right inspiration and education.

Today, I'm breaking down the root cause of financial failure and showing you, dear Founder, how easy it is to avoid the pitfalls and find your way to financial victory.

BREAKING DOWN FINANCIAL FAILURE

You're vital to our economy, and your success is crucial to our country's economic prosperity. However, a flawed financial framework compromises your impact. According to SCORE, here are some of the common money issues Founders face:

• 82% – Poor cash flow management skills or understanding of cash flow

• 79% – Starting out with too little money

• 78% – Lack of well-developed business plan and financial forecast

• 77% – Not pricing properly or failure to include all necessary costs when setting prices

• 73% – Being overly optimistic about achievable sales, the money required, and what needs to be done to be successful

• 70% – Not recognizing or ignoring what they don’t do well and not seeking help from those who do

ARE YOUR FINANCES FLAWED?

It's easy to tell if your financial model is broken. If your expenses meet or exceed your income at the end of the year, then you know you have a major problem. Finanical health requires you to bring in more than you spend – not simply break even. This is what we call being profitable.

THE IMPORTANCE OF THE BOTTOM LINE

Let’s face it, “profitability” often gets a bad rap, with the media regularly citing it as the root of greed and corruption. But in truth, your net profit – your bottom line – is the safety net of your company. It feeds your retained earnings, provides a cushion for unexpected costs and fuels your future growth. Ensuring your business generates net profit isn't just about staying afloat; it's about thriving and building a sustainable enterprise.

THE FIX

The first step to fixing any financial problem, in life or business, is identifying your end goal. Know what you want to achieve! It’s a broad concept, but here are five key questions that will help you lock in on the final result for your business. Ask yourself:

• How much will your business be worth [and why]?

• By when?

• By having what impact?

• On whom?

• Through offering what products and services?

Once you know your end goal, the rest is easy: Reverse engineer the plan. Build backwards from the bottom line up. And that, my friend, is where we come in – making the complex simple and setting you up for success.

With careful planning and diligent execution, today's Founders can build a competitive, dynamic, and successful company, while helping to create a robust and resilient economy for years to come.

THE BOTTOM LINE IS THIS

Your financial framework is the foundation of your success, by facing any finanical fears and addressing any potential flaws you can focus on building a business that not only survives but thrives.

You've got this!

ABOUT TAUNYA WOODS RICHARDSON

Taunya is well-known for her straight-shooting, bottom-line-building approach to founder finance. As the Founder of Nail The Numbers, she brings 30+ years of experience in entrepreneurship, finance, and neuroeconomics to our mission of strengthening the minds and bottom lines of Founders across North America.