WORK ON YOUR BUSINESS VS. IN YOUR BUSINESSJul 13, 2021
Work ON Your Business vs. IN Your Business
By Kim Nagle
Business planning is not a one-and-done process – at least not if you want to see business success! It’s all about working on your business daily, weekly and monthly throughout the life of your venture, having a DAMN Plan and working that DAMN plan, and working on your DAMN Plan to make sure it’s working.
Today, I’ll share three non-negotiable bits of business advice that will help you work on your business, not in it, and I’ll show you why minding your business is important.
In over 30 years of tailoring my own business planning and strategy, I’ve learned – sometimes the hard way – the importance of cash flow management for small business, and the importance of using those financials to make solid decisions. These are the core principles of working on your business, not in it – and things budding entrepreneurs often don’t think about when they consider how to start a business.
Like so many small business owners, I had become so busy working in my business that I’d forgotten to work on my business to manage my cash flow, manage my financials to really see whether or not I was making money. I was too focused on the important tasks of creating new products, making sales and doing all of the other daily tasks. I even was so far behind once that I was too ashamed to take my financials to an accountant to get help.
As my mother always used to say, do as I say, not as I did. I’ve learned from my mistakes, and I want better for you!
The primary goal of working on your business is cash flow management – keeping tabs on whether the money coming in is enough to offset the money flowing out. This is your job as the manager. Minding both sides is where the trifecta of freedom, love and money coexists.
Can you imagine pricing your services right so that you can find the right customers so that you could actually work less and earn more? This is a total possibility, but it’s going to require that you work on your business as much – or more – than you work in it.
Let’s get started!
Step #1: Prioritize your resources to attract your highest-value customers.
These are the ones who value your services and are willing to make the investment to work with you. It’s easy to spend a whole lot of time working with people who are not willing to pay your value, but who are willing to take up a great deal of time. You may have to make some difficult decisions to let go of some customers who have become too comfortable in order to meet your financial needs as a company.
Step #2: Overcome your fears about value-based pricing strategy.
To do this, start thinking about your price as an investment that those high-value clients are willing to pay because they recognize the value you bring and they’re willing to pay that value. There’s no such thing as being “too expensive” if you provide a valuable service.
Step #3: Mind the money coming in and going out regularly.
Help people pay you on time – or early. Put systems together that allow your accounts receivable to fill your cash flow when you need cash. Then, make sure you pay that timeliness forward – and keep your credit score high – by paying your own bills on time. And pare your expenses down to only essentials. Stick to the DAMN plan, ma’am!
If you’d like help following these prioritization techniques and business planning process in entrepreneurship, sign up for my FREE 30-minute coaching call. With my small business tips, I am confident you can grow your business.
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