How to Make the Right Financial Decisions In Your Business
I've been interacting virtually with hundreds of business owners over the last year. Some have had devastating financial loss, some have been slightly impacted, and others haven't experienced any financial strain.
Regardless of where you fall on that spectrum, it's easy for us to lose clarity on the best steps to take. The best thing we can do when facing a financial decision is to simplify it.
One way to do this is using Suzy Welch's 10-10-10 tool.
As you navigate big decisions, consider how your business will be impacted in the next 10 minutes, 10 months, and 10 years. Write the dilemma down and analyze how you'll feel at each milestone (smiley faces work great for this).
Taking out a loan, for example:
10 minutes- :)
10 months- :(
10 years- :(
While borrowing money may solve your immediate pains, the monthly payments might cause a strain in your business 10 months from now, and could delay your 10 year growth goals.
Want another example? How about something difficult like letting an employee go:
10 minutes- :(
10 months- :)
10 years- :)
Short term sacrifice benefits the long term gain. Cutting a staff member may be an incredibly difficult decision and painful immediately afterward. But what will the business accomplish 10 months from now with that freed up cash flow? And how many jobs will create within the next 10 years? A good rule of thumb is to keep the 10 month or 10 year columns in a happy state. That said, sometimes it's okay to make choices that benefit you now. It's all about balance, and this exercise will help you achieve that.
Exercises like this are simple, but not always easy. That's because money goes much deeper than numbers. I specialize in helping business owners clear the fog and reach their money goals faster, and would love to help you do the same. Schedule your free coaching call now.