Spooky season is upon us. The nights are drawing in, the pumpkins are being carved, and we’re snuggling up to watch our favourite Halloween classics. While some of us enjoy the anticipation of a jump scare during a horror film on October the 31st, fear isn’t usually an emotion we like at any other time of the year. But it’s not always an emotion we can avoid.
Speaking with business owners, one aspect of running their organisation that regularly fills them with fear is money. Finances can feel like a heavy load to carry, especially as you begin to grow, employ staff, and need to start investing in new resources. And with this weight can come worries and fears about not getting it right.
This Halloween (and for the rest of the year), take these four tips into consideration to help you banish your financial fear.
Know your numbers
The adage ‘what you don’t know won’t hurt you’, couldn’t be further from the truth when it comes to your business. Habitually reviewing your accounts is crucial to keep afloat of which direction your business needs to travel in. Without understanding your finances, you may find yourself in a sticky situation that was avoidable.
And if you’re struggling to understand, don’t ‘ostrich’. Putting your head in the sand to avoid financial fear and hoping it all goes away isn’t the answer – and isn’t going to solve any issues you may be having. Reach out for support, there are people (like us) who want to see you succeed and will help you get there.
Think about your destinations, not your end goal
Perhaps slightly controversially to most other financial advice articles out there, we don’t recommend thinking about your end goal when managing financial anxiety. In fact, we don’t advocate for having goals at all. Instead, we suggest seeing your business journey as a direction of travel.
Businesses are fluid, they ebb, they flow, and they change. What you started out with is going to look very different when the time comes to exit or sell.
When it comes to managing money, break down the next few years by the direction of travel you’d like to go in, but also have a good idea of the other ways in which your business could go. To do this, use your knowledge of the market, your competitors, previous trends, and so on.
Understanding all these points will help you paint a picture of all the scenarios you may need to be prepared for, and therefore financially plan for.
Face your financial fear: What’s the worst-case scenario?
While no one likes to do it, one of the destinations you’ll need to plan for is the worst-case scenario. What’s the worst thing that could happen to your business, and how are you going to be financially prepared to get yourself out of the problem?
This may feel slightly counter-intuitive initially; isn’t worst-case scenario planning going to make you feel more anxious? Thinking about what could happen isn’t ever pleasant but, not having a plan when things don’t go the right way is going to be a lot worse.
Make sure a financial expert is sat on your board
Engaging an expert in your business can offer you an extra level of peace of mind. If possible, try and bring someone in who can sit at board level, offering strategic insight.
All team members at Fractional Finance will be able to supply expert financial counsel at board level. Before meeting with you and the rest of the team, we will have digested and analysed your numbers rigorously, bringing to the table a detailed level of financial insight. This will then enable us to support you as your business transitions and changes. We’ll also advise on the best course of action to take moving forward, and alert you to any potential issues on the horizon.
Financial anxiety isn’t something any business owner wants to deal with but can be a common occurrence – especially in those early stages. We’re here to take that anxiety from you, freeing up your headspace to get on with driving your business forward.
Contact our team today to help banish your financial fear.