What Do You Do? I Am The CFO Of My Own Home Business!
One area I rarely see discussed is the financial aspects of running a home business. Most of us focus on the fun things such as making money, finding cool products, businesses to be involved with, and setting goals to help us achieve our dreams.
Today I talk about how you can approach your own home business success through the eyes of being your own chief financial officer, or CFO for short.
If you spend a little bit of time on a regular basis thinking about your business costs it can go a long way towards helping you achieve your own long-term financial independence.
Many of us are talented when it comes to the networking side of building a home business. Even people who are not naturally outgoing are finding it much easier to interact with people through social media such as Facebook or Twitter.
However, when was the last time you saw somebody talk about home business expenses on Facebook?
I’m sure you have a pretty good idea about what you are spending in terms of marketing online because those are set costs such as website hosting, email marketing with an auto responder, and so on.
Let’s go one step further.
Does your company have a board of directors?
I’ll bet the business opportunity you are involved with has a Board of Directors. I would be willing to bet that very few of the people you are dealing with in the capacity of an upline have a Board of Directors, including yourself.
Why not appoint yourself to your own Board of Directors, set down and write out a mission statement for your company. Include your financial goals so you can begin to track whether you are hitting those are not. It is a first step in separating out your personal spending from your business spending …… a good thing and sensible thing to do.
What are your operating costs?
Many people set up a personal budgets and try to stick to it, but are not necessarily doing that with their home business.
Prepare a cash flow statement that shows exactly how much you are spending each month on your business.
What is your net worth?
Businesses measure their progress by looking at their assets and liabilities to determine the value of the company. You can do the same thing with your own home business and you should.
Do monthly profit and loss statements and track your net worth on a monthly or quarterly basis. You may find that to be very motivational!
As the CFO of your own home business you are responsible for your own success. Follow these tips to help you change your financial mindset as it pertains to your business.
Let me know if you enjoyed todays post What Do You Do? I Am The CFO Of My Own Home Business! and feel free to leave a comment below with your thoughts.
Have a great day.
The Reawakened Entrepreneur,
Helping You To Retire Wealthy. Travel the World. Stay Young, with
Your Own Home Based Business
Email Me Lyndakonline@gmail.com
Phone or text me 00447515940004
Skype me lynda.m.kenny
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Love this idea of taking your business as serious as you would being the CEO of a big corp job, because we are! That’s knowing where you stand and where you want to go. Great post Lynda!
Thanks Shannon, it’s easy to mix personal finances and business but better to separate it out
Great share Lynda, you are right most people only think about the fun side of working from home. If your finance are not in order then how do you know if you are running a profitable business or not.
Agreed Dereco, it’s important to keep it separate
Love it Lynda…. taking our business as serious as the big boys do is so very key…. thanks for sharing this great post….
Thanks Ron. I always appreciate your comments.