Get a Money Guidance System
Don't let a flawed attitude about cash disrupt your chance to succeed.
By: Chia-Li Chien | Published 06/14/2010
Your personal attitude toward money will impact both your personal and business finances. I work with many businesses and find that if an owner's personal finances include savings, emergency funds and positive cash flow, her business finances tend to be in alignment. She'll have enough working capital in cash plus extra savings. However, if she has personal debt, her business will also be in debt.
So how can you improve your current personal financial situation and thereby help your business finances? Go back in time and find out whether "money wounds" are blocking your wealth opportunities.
"Money belief systems were developed since childhood and later became money wounds," says Jaden Sterling, a wealth guru who owns many successful businesses and has helped many people manifest wealth. "The universe brings us abundant opportunities, saying yes to opportunities that are in alignment with your passion," Sterling says. Sterling relies on what he calls his Inner Guidance System.
"Many opportunities come to me," he says. "Will they meet my three criteria?" He defines his criteria as:
1. Will it make a positive impact on others?
2. Can I make a lot of money from it?
3. Can I have fun doing it?
"This Inner Guidance System provides the experience in balance between giving and receiving," Sterling says. "When you become panicked or fearful of the economy, stock market or government bailout, your emotional state actually blocks the opportunities that are coming to you."
Obviously, removing money wounds takes time and persistence. So you wonder whether you can cure yours. Perhaps the opportunities are already in front of you; you just don't know where to begin.
To prevent blocking the money opportunity coming to your business, consider the following:
1. Pay yourself, the owner, at market rate and on a regular basis. You pay every vendor, employee and everyone else except yourself equitably. You wait until your business cash flow turns and then pay yourself a big check. Unfortunately, you're telling the universe that you don't need money.
2. Don't be a bank for your customers. If your customers or clients are not paying after you send an invoice, pick up the phone and call. Don't let them use you as a bank to finance their purchase, especially the invoices that haven't been paid after more than 30 days. You also have to be aware that it's been more than 30 days. Monitor your aging accounts receivables regularly, and make calls to resolve overdue accounts quickly. Don't tell the universe otherwise.
3. Don't act as your own bank for your business. You put your own house on the line when your business needs working capital, because it's easy. Don't. Your business needs to be self-sufficient, with its own working capital. Set a goal to achieve that; the universe will provide.
4. Don't chase a fantasy. You may not even know that you're not making any profit. Regularly examine your financial status and cut loose any areas that aren't profitable.
5. Give up unnecessary material things. Don't let material things define your social status. You might look great and feel good driving a BMW 650i; but if you can't afford it, it can create unnecessary stress for you, your family and your business. Be true to yourself.
Money is an integral part of your business. You need to demand proper return on your investment, which will have a direct impact on your personal finances. To get the money you need flowing into your business, align with your own Inner Guidance System, or use Sterling's method. Don't let money wounds block the opportunities coming to you.
Chia-Li Chien, CFP®, CRPC, PMP; helps women entrepreneurs to convert their business into meaningful personal wealth. She is the author of Show Me The Money and columnist for WomenEntrepreneur.com & Fox Business online. She is available for consulting, speaking engagements and workshops. She can be reached at www.chialichien.com or firstname.lastname@example.org.
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