In a recent episode of the Expert Insight Interview, host John Golden engages in a thought-provoking conversation with Audrey Faust, a financial business coach dedicated to empowering women entrepreneurs. The episode delves into the critical importance of financial literacy and confidence for women in business, focusing on overcoming barriers and limiting beliefs that often hinder their success. This blog post will break down the key insights and actionable advice shared by Audrey, providing a comprehensive guide for women entrepreneurs looking to master their financials for increased profitability.
The Focus on Women Entrepreneurs
Why Focus on Women?
Audrey explains that many women harbor fears about the financial aspects of running a business. Often, they enter entrepreneurship driven by their unique gifts and talents but may not feel equipped to handle the numbers. This fear is compounded by historical barriers; for instance, women were not able to secure business loans until 1988, a relatively recent development.
The Confidence Gap
Audrey highlights a common phenomenon where women feel they must meet all qualifications before applying for opportunities, unlike their male counterparts who may apply even if they meet only a fraction of the criteria. This disparity creates a legacy of self-doubt that women must overcome to compete effectively in the business world.
Identifying Limiting Beliefs
Common Limiting Beliefs
Audrey identifies common thoughts such as “I’m not good at math” or “I’m not good with money.” These beliefs are often rooted in early childhood experiences and societal conditioning. As a certified neuro coach, Audrey emphasizes the importance of addressing these subconscious beliefs to unlock potential and foster a healthier relationship with money.
Personal Anecdotes
She shares a personal anecdote about her mother’s belief that “you have to work hard for your money,” which led Audrey to internalize the idea that financial success requires relentless effort. This mindset can lead to burnout and a skewed perception of wealth.
Overcoming Financial Fears
Initial Financial Fears
John and Audrey discuss the initial fear many entrepreneurs experience when faced with financial management. Audrey recounts her own experience of being overwhelmed by a complex budget spreadsheet when she first took on a large department. However, she emphasizes that once individuals break down the numbers and understand the fundamentals, financial management becomes much more approachable.
Simplifying Financial Concepts
Audrey’s coaching approach simplifies financial concepts for her clients, helping them realize that understanding their financial data is not as daunting as it seems. She notes that businesses that thrive are those that grasp their financial metrics, as this knowledge enables them to make informed decisions and drive growth.
The Importance of Cash Flow Management
Misconceptions About Cash Flow
Audrey points out that many entrepreneurs mistakenly believe that sales equate to cash flow. They may secure clients and generate revenue on paper but fail to account for the timing of payments, leading to liquidity issues. She stresses the importance of understanding cash flow dynamics to avoid running out of funds.
Strategic Use of Debt
Audrey also addresses the stigma surrounding business debt. She explains that many successful businesses leverage debt as a tool for growth. The key is to manage it wisely rather than shun it entirely. She shares that the most successful businesses she has encountered often have some level of debt, which they use strategically to invest in their growth.
Creating a Financial Blueprint
The Financial Blueprint Concept
To help her clients overcome their financial fears, Audrey introduces the concept of a “financial blueprint,” which she prefers over the term “budget,” as many people find the latter intimidating. The blueprint encompasses all aspects of financial management, including income, expenses, and tax obligations. By creating a clear financial plan, entrepreneurs can visualize their financial landscape and make informed decisions.
Success Stories
Audrey recounts a success story involving a client named Tiffany, who initially struggled to pay herself while supporting a team. Through the financial blueprint, they identified that her team was her largest expense. Together, they brainstormed ways to increase revenue, leading Tiffany to sell multiple packages in her first month after implementing the changes. This newfound clarity and confidence transformed her financial situation.
Understanding Financial Statements
Importance of Financial Statements
Once clients grasp the basics of financial management, Audrey emphasizes the importance of understanding financial statements, such as profit and loss statements, balance sheets, and cash flow statements. She encourages entrepreneurs to review these documents regularly to stay informed about their business’s financial health.
Financial Literacy in Education
John and Audrey agree that financial literacy should be a fundamental part of education, both in personal and business contexts. They lament the lack of financial education in schools, which leaves many individuals unprepared to manage their finances effectively.
Regular Financial Reviews
Monthly Financial Check-Ins
Audrey advocates for regular financial reviews, suggesting that entrepreneurs set aside time each month to assess their financial status. She encourages her clients to make this a routine practice, likening it to a date with themselves. This proactive approach allows business owners to identify trends, anomalies, and opportunities for improvement.
Avoiding Year-End Surprises
John adds that many entrepreneurs only review their finances at the end of the year, which can lead to unpleasant surprises. By staying engaged with their financial data, business owners can make timely adjustments and avoid potential pitfalls.
Transforming Mindsets Around Finances
Enjoying Financial Management
As the conversation progresses, Audrey shares that many of her clients eventually come to enjoy the financial aspect of their businesses. Once they understand the numbers and see the impact of their financial decisions, they become more engaged and proactive. She recounts a client named Kim, who had been in business for 17 years without fully grasping her financials. After working with Audrey, Kim was able to restructure her team and significantly increase her revenue.
Empowering Decision-Making
Audrey emphasizes that understanding financial management is not just about numbers; it’s about empowering entrepreneurs to make informed decisions that drive their businesses forward.
Conclusion and Resources
In closing, John commends Audrey for her valuable insights and the important work she is doing to empower women entrepreneurs. He encourages listeners to check out Audrey’s website, where they can find resources, workshops, and information about her upcoming book, “She Grows Rich.” This book aims to inspire individuals to take control of their finances and achieve their financial goals.
Audrey’s message is clear: financial literacy is essential for all entrepreneurs, and with the right mindset and tools, anyone can master their financial journey.
Our Host
John is the Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. A globally acknowledged Sales & Marketing thought leader, speaker, and strategist, he has conducted over 1500 video interviews of thought leaders for Sales POP! online sales magazine & YouTube Channel and for audio podcast channels where Sales POP! is rated in the top 2% of most popular shows out of 3,320,580 podcasts globally, ranked by Listen Score. He is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist.
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