Recently, on The Sharon Cliffe Podcast (@sharoncliffe), we talked about the fear of money in business, the fear of the unknown and what you need to do to be more comfortable around your finances.
Sharon: A lot of conversations that I have with female entrepreneurs and business owners in general (and myself included), is that the finance and money side of business really scares people. It does bring up a fear because you love the marketing side, you love the customer-service side of it, and you love the entrepreneur side, but the finance and money side does scare a lot of people.
What are the tools and strategies that you've helped clients with to actually overcome that fear of money and the financial side of the business?
Ben: I haven't researched studies on this, but my gut feel on this, is it's actually to do with the fear of the unknown. When I look at stuff I'm scared of, it's because I usually don't understand it.
I was noticing with my daughter, Rose, she started to notice shadows and she was wigging out so much because my shadow was moving. And I said, "No, no, no! That's daddy's. That's Rose's. That's daddy's." and trying to calm her down and explain, "Hey, this is all normal. We're all good." But because she didn't really know what it was, she was starting to freak out. I think that's the same with numbers because it is quite complex, and as your business grows, the thing that you need to worry about changes.
My tip is to actually work with someone who can coach you through the stuff you need to know about, and to be able to manage things like the ‘magic number’. That's something that I believe all business owners should know - like how much tax to set aside, and then you're not going to get caught off guard when you lodge your BAS or your tax return's due. There's just things you can do to know the stuff that you don't currently know.