How to drive up your business profits ten times quicker? In this Expert Insight Interview, Aimee Laliberte discusses why entrepreneurs need to understand their personal money story before setting any business revenue goals. Aimee Laliberte is an Owner at My Virtual CFO, providing bookkeeping, CFO, and profit-first services to business owners.
The interview discusses:
- Personal money story
- Cost management
- Slowing down to move faster
- Getting professional help
Personal Money Story
It is crucial to be aware that how you handle money in your personal life directly affects your business life. There are a lot of different ways to manage money. For instance, people often think of debt as bad, but it depends on whether you let it be your liability or leverage. Also, around 82 percent of businesses operate from invoice to invoice. For a company like that, only one lack of payment could be damaging. By intentionally understanding the management of the money, we better understand how money goes in and out and can make better decisions to scale our business.
Ignoring or not paying attention to a cash position can end up in not being able to make a payroll. Also, people often want to make a lot of money by doing more than they should. Managing costs is crucial for building an enduring business. Moreover, many people have a mentality of a cash flow when it comes to paying taxes. They think that if they drive up their expenses, they can lower their net profit, which means lower taxes. But taxes are not an indicator of profitability.
Slow Down to Move Faster
Contrary to today’s believes, if we slow down, we can scale so much faster. The majority of people do not want to do their bookkeeping because it is something that has passed. But what they do not realize is that they can use it as a lesson for the future. A cash flow summary is fundamental too because it connects the income statement and balance sheet. Money matters in the world that we live in, and it is necessary to know at least basic financial principles.
It is up to you, to be honest with yourself on whether you need professional help or not. Reaching out to a professional is mature, and it builds up business confidence. You will understand what is happening with your money and get clarity on how to grow your business. Plus, these days, it is easy to get fractional support from all over the world due to online work. That means that you can get the exact result you want from an expert you need.
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 is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist.