When it comes to finances many business owners have been led to believe that by having a bookkeeper and taxation accountant your financial needs are pretty much taken care of. Well at least until you have a turnover of $5m plus and then it may be time to consider having a Holistic CFO.
However, during my time as an insolvency accountant CPA and witnessing hundreds of businesses lose everything largely due to them running out of cash, I realised that this advice was to the determinant of the business and to you as the business owner. It became even more clear the importance of having someone in the role of Holistic CFO right from the beginning of starting your business when I had my own wellbeing studio.
Having strong financial foundations in place and a 12 Month Profit Model that was my vision translated into numbers and based around my core values weren’t something nice to have they were both a necessity. Giving me direction and clarity on where I was heading as well as, being aligned with how I wanted to show up and the life I wanted to create.
My cash flow forecast showed me what money was coming in and going out and gave me confidence that I could pay my bills and staff as well as, being able to invest in the business or myself if opportunities arose.
Having a financial strategy and foundations in place right from the start meant that I was able to focus my time and energy on growing my business and into marketing, sales, business operations and my own personal development knowing that my finances were being taken care of.
See whilst your taxation accountant is making sure you’re meeting your taxation requirements and your bookkeeper is entering in your day to day transactions who is…
- responsible for the financial strategy and ensuring that your financial goals take into account the impact you want to make in this world as well as the life you want to create
- focusing on the numbers that will grow your business so your vision can come to life
- creating and maintaining your 12 month Profit Model (budget) so you know where you’re heading and that you’re on track to get there
- building and managing your cash flow forecast so you are on top of the cash coming in and going out of your business and can have the confidence knowing you will be able to pay your bills/payroll as well as, being able to take up opportunities as they arise
- setting up your financial foundations so that you’re not having to spend all your time working on your finances
- analysing your data so you can identify what actions in your business are working and which ones are not and take any necessary actions so you can always being moving towards your vision and not waiting until the end of the financial year meeting with your taxation account
- helping you work on your relationship with money so that you approach your money in a way that serves you and no longer works against
It’s not your taxation accountant or your bookkeeper, it’s the person in the role of a Holistic CFO.
Without someone in the role of Holistic CFO from the beginning what tends to end up happening is…
- it takes a lot longer and a lot of money for your business to grow because you don’t have the data to make smart strategic money moves so you keep taking 1 step forward and 2 steps back which also results in you burning out and having to scale everything back down as you recover; or
- your business grows too quickly but without any financial strategy or planning in place you don’t have the financial foundations or funds and resources to support the growth. Nor do you have the personal capacity to hold this growth in revenue because you haven’t worked on your relationship with money and so you end up sabotaging yourself and losing it all; or
- you don’t make it past the first couple of years despite working the hardest you ever have and investing everything into your business because you’ve run out of money again and you just don’t have it in you this time to try again because you’re utterly exhausted and can’t see a way out
There’s only so long that you can be winging it in your business or thinking that if you just generate more income it will solve all your money problems. More money coming in without financial foundations and strategies in place or working on your relationship with money to support the growth that you’re having just brings bigger problems that you need to deal with.
But when you set yourself up on the right path from the start you give yourself the best chance possible of being able to build a sustainable and profitable business that will allow you to make the impact you want in this world and the wealth you need to live life you desire both now and in the future.
When I asked business owners who had lost their business what was something they would have done differently every time it was to engage someone to support them in the areas that a Holistic CFO focuses on.
To have someone in that role who could have provided that support, who they felt comfortable with to ask questions and not feel stupid for doing so. Someone who had their back and wanted them and their business to succeed as much as they did.
It’s a huge reason for why I started my own business because I couldn’t sit back and see another business lose everything because they weren’t aware that they needed to have someone in the role of Holistic CFO.
Having someone in the role of Holistic CFO at all stages of your business is not a luxury, it’s a necessity. Especially if you want to grow your profit so you make the impact you want in this world and live your dream life without burning yourself out in the process.
The great thing is that you don’t need to have a Holistic CFO working full time in your business and paying them a full time wage because unless you’re a $5m plus business it’s not necessary.
The level of service and support you need from your Holistic CFO will depend on the stage of business you’re in.
In the earlier stages of business working with a Holistic CFO who can mentor you and support you as you step into the role of CFO is a great option. Someone who can help you work on your relationship with money (as how you show up around money dictates what you do with your money), create your 12 Month Profit Model so you have a financial game plan in place, set up strong financial foundations and support you to take aligned action to make your vision a reality. Check out my Ignite Your Wealth Program.
If you’re an established business and you have less time available engaging a Holistic CFO, someone who is a trusted financial strategic partner and who can provide high level and high touch support could be a great option for you. Someone who you can join forces with and who will take the high level finance tasks off your plate. Supporting you in not only creating your financial strategy, foundations, budget and cash flow forecasts but who will also maintain them and sit alongside you in your business as your business wing-woman. Check out Your Holistic CFO Packages.
When it comes to finances you don’t have to do it alone. You don’t have to feel confused, stressed, overwhelmed or anxious around your numbers and money or be winging it and hoping for the best.
Instead, when you find yourself a Holistic CFO that you connect with and feel safe in their space you can start to feel relaxed and calm around your numbers and finances and build unshakeable financial confidence.
So you can start making smart strategic money moves that allow you to grow a sustainable and profitable business and make a bigger impact in this world.
Doing it in a way that is aligned with how you want to show up in business and life so you can enjoy more fulfilment and wealth in both business and life doing what you love to do.
Sorry, comments are closed for this post.