The Smart Business Money Habits website, educational materials, and tools are ideal for entrepreneurs who:
- Have been in business at least 2-3 years and are making a profit
- Are experts in their particular field, but aren’t financial experts
- Have big dreams of sharing their valuable service or product with the world, but need better cash flow to get the word out
- Recognize the importance of becoming proficient with business money management
- Are committed to becoming financially savvy
- Are willing to invest time, money, and energy toward becoming good managers of their business finances
The Smart Business Money Habits website, educational materials, and tools will NOT help entrepreneurs who:
- Believe the solution to money management problems is to work harder to make more money
- Ignore the fundamentals of responsible business money management practices
- Aren’t willing to invest their time, energy, and money into learning business financial best practices
Here are a couple of stories about two entrepreneurs who started out with big dreams. See if you identify with either of them. If any parts of Brett’s or Brenda’s stories ring a bell with you, we encourage you to explore our resources further.
As you read these stories, keep in mind that while Brett’s and Brenda’s businesses are quite different if measured by size or industry, the owners are very similar when it comes to financial savvy. They are exactly like most business owners in that they know their business well, but know just enough about business finance to get by until something happens. At that point, they may be heading for trouble but are not aware of their predicament. Both made efforts to learn about business finance. Both thought their advisors would advise them on proactive steps to stay out of trouble.
Brett, the Cowboy Entrepreneur
Brett is a cowboy from southwest Colorado who was living his dream. He did leather work. His main product was panniers, the “suitcases” that fit on either side of a pack horse. Brett’s reputation for high quality work assured he was kept busy. He was serious about his work because he himself used his panniers. He grew up using inferior quality panniers that came apart after just a season or two in the high country and vowed he would create and deliver a product that would not let a “packer” down.
I (Dan) met Brett in the late 80s when he came to my office to discuss his business. His profit was so small he could not live on it.
(Click here to read more)
Brenda, the Mult-Million Dollar Consultant
In Brenda’s case, profit was not a problem, but she just didn’t know that. Brenda headed a multi-million dollar consulting firm primarily focused on government projects. Now in her 20th year, she was a thought-leader in her field and considered herself quite successful. Her current P&Ls showed decreasing profit and her cash flow had reduced to a trickle. The bank had reduced her line of credit.
(Click here to read more)