A Mother of Abundance needs to know how to manage her finances. Your task on Day 12 of the 28 Days of Abundant Practice Challenge is to learn some business finance basics.
Yesterday we dealt with personal finance basics. Today we’re moving on to business finance basics.
So you’re a mompreneur, a mom-boss, a woman business owner or even a fempreneur – great!!!! How is your business doing? Do you know? If you’re climbing the corporate ladder or finding your ambition by some other means, do you know what the company bottom line is? Below is some basic information that will give you a good starting point.
The Most Basic Business Finance You’ll Need To Grasp
Work out how much your monthly expenses are and how much income (sales) you need to break even (the exact amount to pay all business expenses, with nothing left over for profit). Your break-even amount is the very minimum you must make each month.
Create your sales targets. This will be how much you want, to make the business viable and to grow it. Work out how much you need in sales to hit your targets.
If you know how to do bookkeeping, that’s a bonus, but that doesn’t mean you need to be the company bookkeeper if it distracts you too much from growing your business. Do what you have to do until you can afford to outsource.
I spent years doing the books in my business. I didn’t like it at all but knew it was important. I finally found an accounting system that freed up my time to focus more on our clients, the community work we do, and on growing the business.
Important Figures For Climbing The Corporate Ladder
Those of you climbing the corporate ladder should also have an idea of your organisation’s bottom line and how your department adds revenue. If your company has a corporate section on its website, this information is likely to be there. Do you have any ideas of how to add value for your clients/customers? Will your value-adding ideas reflect well on your organisation’s bank balance? Then that’s the report that needs to be written up with your name all over it and presented to someone who can move you up the ladder.
Do you have an understanding of business finance basics? Is this something you need assistance with? Is this your strong point? Share your comments below.
Comment on social media with the hashtag #28daysofabundance, join the facebook group here:
https://www.facebook.com/groups/motherofabundance/ Feel free to invite other ambitious mothers to the group.
This post and the 28 Days of Abundant Practice Challenge are inspired by the principles in the 9 Steps to True Abundance infographic. You can get your free copy by signing up below.
