Your habits are the things that you do over and over again. You may or may not even realize some of the things that you do that have become a habit. Your routine behavior is why what you have a habit of doing is important. Anything done habitually has an impact: whether good or bad. The impact can hit all areas of your life, including your business and its cash flow. Here are two ways that habits can negatively impact your cash flow AND how you can change it:
- The HABIT of not having a realistic view of your money.Many Entrepreneurs are under the impression that their business is profitable just because they bring in revenue. However, they do not make it a habit of looking at the numbers to be sure. Knowing that your business made $3,000 at an event, is not enough to know if your business was profitable. How much was spent to place your business in a position to bring in that $3,000? How much were your supplies? Did you have to pay to be a part of the event? Did you have to pay for a hotel room for the event? These are all examples of expenses that have to be taken into account before determining whether your business made a profit. This calculation should be a habit for the cash flow in your business. Tending to overlook expenses will give you’re a false impression of your financial state. You may think you made a lot of money, but in essence you are really broke when the numbers reviewed. Make it a continuously habit to check out all expenses, before any money is spent from the revenue made, because the money you are spending may not be profit.
- Habit of thinking of get rich quick schemes as a way to wealth. Many people think that one day they will win the lottery, their business will get that one huge contract that will come through, or if they hit a ‘lick’, then things will be ok. These people make it a habit of thinking that if one of these situations happen, then they will have enough money to live their best life. You cannot replace the results of hard work with the hopes of get rich quick schemes. I’m not saying that you cannot win the lottery and etc. I am saying what are the odds of the get rich quick schemes really paying off? How long are you willing to wait to see if they will pay off? When you make it a habit to shift that energy and turn it into smart work (budgeting, savings, investing, and taking control of your money), the wealth is sure to come. You should like those odds much better.
Now habits take time to create. It does not happen overnight. Start applying new habits now. Take the time now to see what habits that you have that can hurt your business finances later and take control of them. Do it day-by-day and before you know it, your new habits will give you a new sense of joy, fulfillment, and WEALTH. You got this!