Is Your Financial Literacy Balanced?
Here are some tips on getting a grip on your Business Financial Literacy.
Crystallize your Vision
If you are able to plan and really crystallize your Vision, all financial decisions will either compliment the Vision or not. Easy choices.
Your Choice is Your Choice
Spending your time doing other things will not let you master your financial literacy. So if your playing computer games, watching TV or generally sticking your head in the sand, watch out…. Dedicate and set aside financial literacy time.
Learn about your Profit Drivers
Know what your profit drivers are, how the influence your Vision and then master them.
Choose the Right Associates
It pays to be around associates and friends who are focused and achieving their goals. Surround yourself with people you can learn from.
Pay Yourself First
A business that can’t afford to pay yourself a “fair wage” first is not a business. It is a glorified hobby and unless you have planned your cash-flow with this in mind will be destined for a cash injection or failure. Practice self-discipline by keeping expenses low.Become creative on offsetting your expenses.
Pay Your Advisers Well
Your professional partners in business are your Solicitors, Financial Planners, General Insurance Brokers, Accountants, Book keepers and Business Coaches and Consultants. If possible set them up on a performance profit share arrangement. This will have more incentive to work harder for you. Be prepared to offer 5-7% as an incentive to achieve great results. Your turnover will be up and you will share in the gains.
Recoup Your Investment
Make sure that when your platform is achieved and growth is supporting your development to withdraw your initial investment to use elsewhere. It’s the concept behind ROI. (Return on investment) Invest and then take the initial money out after a time when the investment has earned for you.
Your Business is an Asset, Shiny Toys are not!
Remember why you are in business. Be careful with splurging on Toys or unnecessary items which will effect your asset base line or profitability.
Get a capable certified Business Coach
When you play golf you can imagine you are Tiger Woods. When you do business, you can ask yourself, “What would George Soros have done if he was in my place right now?”
Share Your Knowledge
Give the Financial Literacy foundation to the next generation.
Support apprenticeships and trainees, communicate with your staff, customers and suppliers.
Look in the Mirror
If there is a challenge in your business, be sure to check in the mirror first.
