When I started my Corporate Event Management business the number one worry that would keep me up in the middle of the night was the utter confusion of managing our business finances.
What do you mean there’s GST, Business Tax, Income Tax, being alive tax?? I would say almost crying!
I was so confused about exactly how much money I needed to be putting aside for the tax man, what I could afford to pay myself, how much I could reasonably dish out on staff/expenses and what I should be reinvesting back into the business.
I felt like our accountant was speaking another language and I just couldn’t find anyone that had a simple explanation about how it all works.
I never had any issues with signing clients and bringing in decent revenue, I found that part to be relatively easy! But so frustratingly, the second money would hit my bank account, it felt as though it would be gone again eaten up by all of the expenses we needed to pay. I thought that by making money our business was really profitable – Goodness was I wrong!
Each quarter would roll around and our book keeper would email us to let us know the dreaded news that our latest BAS bill was around $8,000 and you can bet your bottom dollar that the money wasn’t just sitting there waiting. My constant thoughts were, how could I be getting this all wrong? I have hired a bookkeeper AND an accountant!
Unfortunately there was no happy ending to that story – I ended up becoming so overwhelmed and burnt out that I decided to close the business. The full understanding of why so many small businesses fail every year smacked me right in the face!!!
After I licked my wounds, my immediate focus went into learning how to effectively manage my personal finances which I did with the help of Cashflow Co (a big shout out to them) but it wasn’t until I was ready to start my next business venture that I was absolutely determined not to find myself in the same situation ever again.
In what felt like an absolute miracle (some may even call it divine timing), the answer to my problem fell into my lap by the way of a book called Profit First by Mike Michalowicz.
I am not joking when I say that this one book has changed my life FOREVER!
So what was so profound?? The combination of two things.
Firstly – the small mindset shift of paying yourself first. SALES – PROFIT = EXPENSES rather than SALES – EXPENSES = PROFIT
Secondly – by implementing a simple cash management bank account system (that you are taught in the book) not only would my business be immediately profitable, but I would never have that looming overwhelming fear of the quarterly BAS dates ever again!!
So if you are running your own small business and feeling ANY of the feelings I had, then please do yourself a massive favour and buy this book!
https://amzn.to/3q34qXz – Profit First by Mike Michalowicz
Got questions about implementing this strategy into your business?? Reach out to me by email; firstname.lastname@example.org or DM me on my instagram page https://www.instagram.com/amybett_/
It makes my heart actually explode when I am able to help others find clarity and get out of the mess that I was once in! Which will lead to a very exciting announcement next week so stay tuned!
Disclaimer – As an Amazon Associate I may earn a commission for sharing this book with you, but don’t worry the cost is the same for you! WIN – WIN.