When we become business owners, money takes on a different light. Of course we need to make money in order to keep our businesses afloat. Getting (and keeping) clients is the order of the day. That’s the practicality of life. But how we think and feel about money plays a lot into being an entrepreneur.
Money can make both our professional and personal lives easy or the lack of it can make us feel like we’re locked in an endless struggle. For most, money is a very intense and emotionally-charged subject.
Two of the top reasons many people are considering or have already made the leap to becoming an entrepreneur are: 1) they love what they do, and 2) they want control over their financial future.
Sounds simple enough, right?
I think we’ve all come to realize that staying in corporate doesn’t necessarily mean financial security. Today’s work world is changing dramatically. No longer are corporations keeping their employees for decades like they did for the Baby Boomer generation. The safety of a predictable regular paycheque and benefits aren’t as long-term and robust as they used to be. This is due to corporations looking to cut costs in many areas (think the incoming paradigm of flexible work schedules with less or no benefits).
So how does that affect consultants, coaches, and other service-based entrepreneurs?
It’s not really the corporate workplace, the economy or the markets that influence your ability to make money. It’s your own personal relationship with it that drives your experiences.
The truth is the root of your money challenges are most likely tied up in your early experiences with money.
Think about this…
- How did you interpret the discussions your parents had around money?
- Did you come away from your familial life with a negative view of money?
- Do you always think there’s never enough?
Now that you’re a business owner (or thinking about becoming one), you need to get real about money and make sure you work at keeping a positive open mind about its role in your life.
To help you along, I’ve got a very interesting exercise that will get you to start freeing up how you think about money.
The million dollar money exercise
Step 1. Imagine you’ve just been given a cheque for a million dollars – hooray! Pop the champagne cork and do the happy dance! Now find a quiet space, take out a pad and pen and write down exactly how you would allocate those funds. Think thoughtfully about what you would do.
Step 2. Please don’t do this part until you’ve completed Step 1! Now that you’re finished writing out all the wonderful ways you’d spend your million bucks, next I want you to record how you felt while doing this exercise. Was it easy to decide what to do? Did you save some money? Spend a bunch? Invest? Give away to family/charities, etc.? Did you feel like that the amount of money was beyond your wildest dreams or was it just a drop in the bucket? What emotions were being tugged at here?
If you’re seeking to be financially independent as a business owner, it’s critical you get a deeper understanding of how you view money. Otherwise, you can’t make really informed decisions on what to do, e.g. don’t let negative emotions drive your money decisions. Managing, saving and interacting with money should be free and joyous (I know that sounds easier than done).
Where did you come out on the scale? Do you have a more negative or positive reaction to money?
If positive, well, you’re already on your way! If negative, spend some serious time challenging your negative money thoughts. By changing your attitude toward money from negative to positive, you can’t help but see a positive change in your financial circumstances. That’s because your money situation is a mirror of your money thoughts.
I know because I’ve managed to overcome my own negative challenges with money. And I know the work is definitely worth it!
So what does your financial future look like now? I’d love to hear how the exercise went for you and what insights you have that you can build on for making money your best friend!
© Kim Chernecki 2017
Kim Chernecki is the President and Founder of The Dream Business Creator (and parent company Freedom Street Inc). Kim works with executives transitioning out of corporate North America and entrepreneurs who want to define, design, launch, and grow their dream consulting or executive coaching business so they can be on their way to a 6-figure + income and financial freedom. Her proven and practical methodology helps new entrepreneurs save thousands of dollars and months of time idling in start-up mode; and small business owners jump over the “not-seeing-the-results-I wanted” hurdles that keep them stuck. Visit Kim’s website at www.dreambusinesscreator.com.