February’s theme in my Facebook group, the Audacious Entrepreneur’s Sandbox, is Money Mindset. This is something that MANY Entrepreneurs struggle with, especially at the beginning, and especially for women. Women aren’t culturally conditioned to assume entitlement in ourselves, and that is one of the first assumptions we must blast through when we start our own businesses.
I have worked hard on my own Money Mindset since I started my first business in 2010. It’s not just something that comes intuitively — I had to weed through my logic, rationale, environment, and even the things I was surrounding myself with in order to come to a healthy and growth-oriented Money Mindset.
Throughout the month of February in Audacious Entrepreneur’s Sandbox we will be discussing this issue. Our workshop was a deep dive with a Financial Advisor on developing your own best practices and mindset as your business grows. First, I’d like to tell you about my own breakthrough experiences.
Employment Trains Us To Accept Only Regular Pay
One of the biggest mental landmines I see in my clients is an irrational expectation of destitution. One bad month and everything is ruined, I become a failure, and I’ll have to live under a bridge. It’s extreme thinking and it’s absolutely not true – especially if you have good liability and life insurance (this should be your first move in starting your business).
Most of us had some sort of gainful employment before becoming Entrepreneurs. We worked at the mall while we were going to school or may have had a salaried career. We learned a lot of valuable skills through this work, but we also learned something not so useful. We got used to regular money without having to manage sales, marketing, financial margins, clients, and processes. We did our job, and money came. Period.
This is clearly not the case when we start our own business. Logically, I think we know that this will be a transition. However, for some reason, the mind starts to freak out, and we start staring at the number in our bank accounts without remembering how it changes over time.
Yes, for a while that number may not be supplemented by sales in your new business. It may take time to get set up and receive your first client. This is especially true for brick and mortar businesses. But over a long enough timeline, money always comes, and that bank number changes.
The issue is when we don’t allow ourselves to believe that money will flow to us ever again. In fact, if you look over your business to date, I’ll bet you’ll notice that you received money at least monthly. Even though I was terrified that money would at one point stop coming in despite my efforts not ceasing, money actually came to me rather regularly. I just didn’t recognize it.
Mantra: There is always more money.
What are you worth?
This leads me to my next point. As Entrepreneurs, we have the prospect of earning an exponential sum. Did you feel that immediate resistance when you read that sentence? That’s what I’m talking about!
What do you believe you are worth? How much do you think you can or should earn – per hour, per day, per week, per month, per year? I ask you this because most Entrepreneurs have the ability to earn millions. I’m looking at you, restaurant owners.
Something happens when we believe we’re not worth much. We communicate that to potential clients and customers through our body language, reactions, and words. They’re less likely to buy from us. And we’re less likely to see opportunities to receive. Our lack of confidence becomes a self-fulfilling prophecy.
Look around. Is there someone in your industry that earns millions each year? Why can’t that be you? I’m serious. If you own a local restaurant and only expect to earn $50k / year from it, you’re playing too small. I know for a fact that there are restaurants in your region that are earning way more than that. Certainly we know of the celebrity chefs and restauranteurs. Why can’t that be you?
Now, there is a caveat, here, and that is for those who don’t want to live that big. If you don’t want to earn millions, I challenge you first to consider why? Is it really that you don’t want the hassle of managing that money, or are you afraid of the work it would take to get there? If it’s the latter, why are you an Entrepreneur? Entrepreneurship takes a lot of work, but it’s your work, which is what we love about it.
If you truly want a small operation and nothing more, it’s still important to set your sights on what would make you comfortable as an income. Studies show that in 2017 comfort came around $75k / year. With inflation, I suggest setting your sights at six figures from here on out.
For the rest of you, start following the giants in your industry. What are they doing with their days? How do they communicate? How have they structured their businesses? We’ll talk about scaling business at a later date, but business structure is critical to exponential growth. Once you figure out how this fits your business, you will be unstoppable.
Mantra: I receive money every day.
Pause And Affirm When You Receive Money
Often we will get so caught up in the to-dos of the day that we forget to pause and reflect. This affects several facets of our mindset, especially our Money Mindset.
When I was struggling to recognize that I was receiving money, I started the practice of affirming when I received money, even when it was just a penny on the sidewalk. A penny, though small, is still money. If I found a penny, I received money that day. Period. I picked it up, stated to myself, “I just received money,” and put it in my pocket. Slowly, my change jar got full, and so did my income.
If you feel like you’re not receiving much money, start by looking back over your business this month. Did you receive any money? Closing even one account means something in your business is working and that you are receiving money. More importantly, you’re receiving clients / customers. This gets into an important part of my Coaching process with my clients – replication. I can’t get into it, here, but know that if something went right in your business, study it. Then do it again.