Answer this question: If you weren’t making money in your business, would you still be doing it?
I’m going to go out on a limb and guess that you answered the above question in one of two ways:
- I’m not making money and I’m still doing it right now!
- Yes, of course I would, but I would need to find something (like a “job”) to support my family.
Whether you’re “in it for the money” or not, you are. As Michael Scott says in a hysterical episode of the office in which he runs into financial trouble (financial troubles aren’t a laughing matter, but the show is), Michael says, “I was never in this for the money. But it turns out that the money was an absolute necessity for me.” He didn’t have respect for the money he was making or know how to properly handle it, and was in serious financial trouble.
What this means for your business
As an entrepreneur, It doesn’t matter what your passion is or what your goals for your business are – money is in the formula that will determine your success.
Think about that for a second. You don’t have to be obsessed with money or have a goal of being on the Forbes list of richest entrepreneurs to understand that money will determine your ability to achieve your goals.
It’s scary, but it doesn’t have to be.
Money may determine your ability to reach your goals, whatever those are, but cash is also the vehicle that will help you provide more of what you have to offer to the world. It can be your biggest friend instead of a solely a necessary enemy.
Take TOMS Shoes, for example. TOMS donates a pair of shoes for every pair you buy, and now does much more than that. It’s clear that their mission, “To make life more comfortable,” goes far beyond making a profit, but without bringing in money and knowing how that money impacts their business and can help them grow, they won’t have what they need to make life more comfortable for more people. TOMS has to make sure their margins are high enough to give away free pairs of shoes. Accounting is a significant part of their business, as it is in yours.
Money is an absolute necessity for your business, and it allows you to live a comfortable and fulfilling life. It definitely does not bring happiness or fulfillment on its own, but it’s a tool that can help you get there.
Do you know how to use that tool for your business?
Take some time today (even 30 minutes) to think about how your financials impact your business and what you’re doing to make sure they are leading you in the right direction. Accounting and bookkeeping may be near the bottom of your to-do list, but whether you’re aware of it or not, they are at the top of your “keys to success” list, so pay close attention to both.
See how Kahuna Accounting’s services can help take your business exactly where you want it to go.