Introduction
In a previous module, (Section One ‘Future’ of the ‘Platform’ Module) we emphasised the importance of understanding your destination ‘B’ (where you want to be). As we mentioned, without understanding destination ‘B’ you will only end up at the wrong destination or at the right destination but having wasted a lot of time and money getting lost along the way. So to reiterate – planning for destination ‘B’ is vital!
But, what about destination ‘A’?
Well… part and parcel with your understanding of destination ‘B’, is clarity on your of destination ‘A’ (where you are now). This is particularly important when it comes to your current financial situation.
Many trade business owners are a little sloppy with their finances. In fact, it is not uncommon for them to;
- Poorly manage their financial statements
- Take on financial management alone and/or remain unsure of whom to involve
- Maintain success-jeopardising business habits
- Disregard the importance of ‘cloud’ technology as it is perceived as too “difficult”
- Inconsistently or ineffectively price their service
- Inefficiently manage inventory
- Have uncertainty regarding their options for financial assistance
Perhaps the most common mistake of all is basing decisions on what their last employer did, without any solid evidence that their last employer was truly making any profits at all.
This FUNDAMENTALS section of the module is designed to inform your understanding of money management basics. It is time to stop playing it ‘safe’ by thinking your business practices are acceptable and start controlling your business finances ‘today’ (destination ‘A’ – where you are now). It is time to take your money management from ‘Safe’ to ‘Strategic’.