This week I am learning the financial side of my business, which, I found out, tends to make some people very nervous. I had never had a lot of money so I never had to deal with it much; I make it, I spend it, I make more. That’s about the extent of it.
I’m finding out that I have a lot to learn about my attitude toward money, and it’s not something to take lightly. After all, money is the backbone of any business. If you aren’t making money, you’re not going to have one for long.
I was finalizing my business plan this week, the one I thought I was done with weeks ago. After I showed it to my finance guy, I spent a few days adjusting, cutting, adding, and balancing.
“Your figures don’t add up,” he told me after looking at it. “How did you come up with these figures anyway?”
“I just put down what I thought I would need,” I said, already knowing I was in trouble.
I heard a sigh at the other end of the phone line. Oops.
“You can’t do that,” he said. “The figures need to make sense.”
So, I received my first lesson in business financing. The figures have to make sense. For someone whose method of bookkeeping consists of keeping the duplicates to checks and hoping I will remember to write down my debits, I know I need to change my habits.
It might take me a little time to understand it all, but I have a great teacher. Like other teachers I have had before him, he is tough, but I know it’s just because he wants me to succeed.
This is just one more step toward becoming a business owner. And because it’s one of the most important steps, I can’t afford to make any mistakes.