There is so much on social media from people either claiming they are earning 6 or 7 figures or they can help you achieve 6 or 7 figures. In my experience many business owners simply want to earn a consistent £5k a month (profit)! There aren’t many I know who really need more than that!
I know it sounds counterintuitive, but interestingly the more zeroes you see behind the pound sign, the more anxious you may feel.You can have a six or seven figure business and still feel and may be broke. Unfortunately, there’s this little thing called cash flow that most aspiring entrepreneurs don’t think about until it’s too late. Cash flow actually represents all of the money flowing into and out of your business. This means that any expenses you have like taxes, office supplies and invoices for suppliers count against your profits. In fact, 82% of small businesses that fail do so because of cash-flow problems.
- One sure fire way to ensure you stay on top of your numbers (as opposed to the other way around) is to bag yourself a great accountant. Yes you could do it yourself – but will you? Really?
Yes you could get a friend to “do your books” but why would you?
Treat your business and your business numbers as the important asset that it represents.
I hired an epic accountant who I was slightly scared of – it worked for me!You need to stop thinking like a freelancer and STEP UP and think and behave like a CEO
It’s hard. There’s no class or online programme you can complete. You have to stop thinking like a solopreneur and step up into the role of a CEO.
2. You need to plan, strategise, forecast and budget.
You need to step up and lead, provide inspiration and move the business forward.
It’s scary, it’s overwhelming which is why planning and your ability to step up and step back from the “doing” is critical to your business success.
3. You have more responsibility, not less.
For most of us driven entrepreneurs, the day-to-day hustle is part of daily life. There is a never ending list of stuff to do and we struggle to prioritise, step back and learn to trust and delegate.
You have to learn to embrace failure and fail forward, you have to learn that the objective is not perfection it is progress – that’s a tough one for a new entrepreneur.
Increasing turnover and profit means more responsibilities, so you have to to step up as a leader. It’s not good enough to be a technical expert you need to inspire and lead.
4. You need to develop a GROWTH mindset
You need to work harder on yourself than you do on your business.
Totally change the way you work and work “on” your business not “:in” your business – which is really hard! Every single cell in your body will just want to do the tasks, but you need to let go, allow others complete the tasks and you step up and take on the role of the business conductor.
5. You need to develop Resilience
Running a business is tough. You need to toughen up and develop a thicker skin. Prepare yourself and your ego for rejection.
Some refer to resilience as our “bouncebackability” (new made up word!!) and as we are living and working in a world where change is the norm, then our ability to develop our resilience is critical when leading a business.
You need to be smart about whom you hire. It’s easy to hire people you like, you want to help people who could do with a job and you think it’d be great to have them around. BUT are they the right people or are they “right now.”
Hire based on skill not on friendship. Hire based on your need not theirs.
The late motivational speaker Jim Rohn is often quoted as saying, “You’re the average of the five people you spend the most time with.” In business, you’re the average of those in your business – so choose carefully and evaluate regularly.
6. You realise “imposter syndrome” is a real thing.
Your turnover is increasing, you keep a tight control on overheads and a steely eye on profit. You can’t believe how well its going but you keep thinking that it won’t last and it isn’t sustainable and you keep thinking someone is going to work out that you’re making it up as you go along. (i’ll let you into a secret – even the most successful people think this will happen – it’s perfectly normal) The difference? Now its more opening discussed as opposed to historically we’d all suffer in silence praying that no one would find us out! Imposter syndrome doesn’t discriminate against rich or poor people, gender or race. Everyone can feel like an imposter at any time, and it’s often hard to escape that frame of mind. So develop your coping mechanisms and develop them fast!
7. You must focus on nurturing relationships
When you first start out as an entrepreneur, your time and energy are focused on consuming information, learning about your business, your environment and how to do it faster / cheaper / better. You talk to tons of people, go to so much networking events, seek out mentors, inhale business books like its your new oxygen and you do subscribe to all the free webinars available and you’re so overwhelmed with guidance it’s exhausting.
But at some point, you have to take a step back and focus on developing better relationships and connections in your business. Surround yourself with the people that get you, the ones you can open up honestly without fear. I’d recommend you finding your people as soon as you can.
Many spend their first year of business trying to be at every program, going to every conference and meeting everyone in their industry. Ending up spreading yourself and your finances too thin. So instead, nurture key relationships and build deeper relationships with those that matter.
Successful CEOs spend less time out and about and more time nurturing their business relationships.
After all, attention is the new currency in the business world, and you can achieve a 10 X ROI even after you’ve arrived at that hard-earned six and seven figures.
Finally, anyone can start a business, and thousands are starting online businesses every single day. The fact that we encourage entrepreneurs are encouraged and celebrated is brilliant!
However this does NOT mean you are going to see immediate success with your ideal clients knocking down your door to work with you! Building and developing a thriving and profitable business takes time, consistent action, grit and determination.
No matter what you read, listen to or watch – there is no magic formula and no quick fix that’s going to give you overnight success (no matter what the online “gurus” tell you).
This is the time when you have to dig in, build your resilience and do the real work. If you are tempted to stop, throw in the towel after your first failure then maybe running your own business isn’t for you.
No one tells you the tough stuff – not the online “gurus’ for sure!! Find your way, find your path, develop and hone your skills.
Please please remember every business is different – hell, YOU are different and there is no magic formula, silver bullet or secret blueprint!
I really really don’t believe that there’s an ideal 10 step process you can execute to make £5k or £10k a month – or wouldn’t everyone be doing it?