Entrepreneurs need to attract resources like people, energy, money, time - and sometimes they need to decide to let them go. In this article we explore the resource of money and the art of managing it.
Budgeting scenarios powerful tool of attraction
As a startup and in times of expansion attracting enough financial resources to get your business going is a core issue. Without it you cannot build what is needed. Working your budget is a good way to get a grip of what is actually needed and the effects of different choices. Budgeting is a way of staging different setups without actually risking your money yet. You work on different scenarios and widen your perspective of impact of different decisions. What if you start smaller and grow slower? Minimizing risks – yes. But will it also minimize chances down to a level where it costs you the potential power of your business idea? Getting funding by credits? Helps get going faster – yes. But will it also increase your monthly costs and is your business idea carrying it? Financing by joining partners? Helps build investment funding needed – yes. But will it also diminish your decision power and control over your idea? What is an acceptable level?
Thinking out of the box can be a very powerful way of getting ahead. Are there alternative business models? Other ways of funding or ways to get going with a smaller amount? Don’t jump on first idea – give yourself the benefit of a doubt. A coach can help you widen your thoughts and get out of that famous box.
Attracting financial resources
Attracting moneys is not all about seeing where the money is. It is also about having the courage to go get it – whether in form of funding for starting up or expansion or in form of having your customers be prepared to pay. This takes self-confidence. To be able to attract you need to be self-confident enough to be attractive. Customers go where they think they will get the best deal, they don’t in the long run shop to support you. They buy to fill their own needs and if they think they are buying from a loser they will want cheap bargains and you are devastating the value of your product or service.
Most investors weigh the intrinsic power of the entrepreneur higher than the business plan in itself because they know the challenges of putting any given business plan into action. No matter how excellent a plan, if they don’t believe in you being able to do the work the plan won’t fly and money is wasted.
Self-confidence and self-knowledge are important parts of attracting money and that’s why being grounded in your idea and the awareness of your strengths and weaknesses developed in coaching is so powerful. You build the power and the courage to go out there and represent your business again and again.
Letting go of money - are you crazy?
This power of yours will also be the one helping you to know when to let go. When the financing comes with too many strings attached you can have the courage to say thanks but no thanks and keep looking. When customers want to negotiate prices, you can stand firmly within your own boundaries and have the courage to say no to customers not ready to pay for your services. Letting go of a customer who is in the wrong place and keeps expecting extra services and spend a lot of your time on questions, re-arrangements and changes while paying lowest possible price may in the short run be a blow to your business but in the long run give room to the more profitable ones happy to be served because they understand and know what they are buying.
Money is an important resource to any business but don’t let it blind you. Your business goals are bigger than that.
