Making money and to be profitable is one thing but having money to retain in the business
altogether is the ultimate prize especially when the unexpected happens.
A sustainable business model is one that includes a healthy financial cushion, and the key to creating a financial cushion is to Pay Yourself First. Unfortunately, this is the exact opposite of what most business owners do. Together we will create a Financial Strategy and a Detailed Budget in which the first bill you pay each month is to yourself as a business owner.
Sound impossible since you scramble some months just to pay your current bills, let alone set aside savings? With a few powerful changes, you can strengthen your financial standing.
Sound impossible since you scramble some months just to pay your current bills, let alone set aside savings? With a few powerful changes, you can strengthen your financial standing.
Effective 3 Steps To The Pay-Yourself-First-Financial-Plan
Determining How Much Currently To Pay Yourself First
(Current Goal Setup)
Creating A Business Budget To Reduce Spending
(Target Goal Setup)
Turning Profits On The Books Into Instant CASH
(Financial Cushion Creation)
Why The Pay-Yourself-First-Financial-Plan Works?
1. Prioritize Savings:Establishing saving as a priority is a powerful shift in thinking, a wealth-building mindset. As the business owner, you are your most valuable asset. Without you, there is no business—and if you are in a constant state of financial stress you cannot invest your full attention in doing what you do best. When you prioritize saving and paying yourself first, it motivates you to identify powerful new ways of building your wealth.
2. Develop Good Business Financial Habits:Paying yourself first will empower you to learn how to better allocate and manage your money. Instead of just paying your bills as usual, you will need to evaluate your areas of spending and dig deep to see where your money is really going. Since paying yourself becomes equal to all other controllable costs, you will need to rationalize the line items of your PNL (profit & loss). This will create discipline and sustainable financial habits.
3. Proactively Prepare For Downturn, Surprises, Or Financial Emergencies:Paying yourself first will incrementally create a healthy financial cushion minimizing your risk when an unexpected financial downturn, money emergency, or expense arises. Without a financial cushion, creating or increasing your debt may be the only way to maintain your business. With a cushion you minimize your financial stress. In addition, proactively paying yourself first opens business opportunities that might otherwise come your way, creating a roadmap to financial stability. New business opportunities means more cash flow and more cash flow empowers your future growth.