Decisions you make in your business
Are your investment decisions working for you? The key to enlightenment is to look at your results. But first let’s get back to basics.
When you are a business owner you can make investment decisions whether you’re aware of making that decision or not.
Lifestyle The amount of time you use in your day to attend to tasks in your business, as well as the amount of “bleed” you accept all impact your lifestyle, your contentment and your well being. By “bleed” we mean the little things that you do in your own time that somehow need to be done but not intended to do which impact your me time (such as returning that phone call just as the first guests arrive to your BBQ).
Capital In very simple terms this is the investment you’ve made in the business where you’ve contributed to the business in some way. This might be money you’ve put in over time, the purchase price you paid for the business, the earnings you’ve forfeited to invest further into your business.
Financing This is the method you’re using to put that Capital into the business. If you’ve not gone on holiday to use the funds for a gizmo for the business, then you’ve funded that transaction and contributed equity to your business (you sacrificed personal cash flows for the business). If your bank gave you the money for that gizmo, then you’ve increased debt in the business and not equity, probably to ease your cash flow. In this case you’re potentially building equity over time, and betting that your investment will yield greater returns than it costs.
Have you considered the investment decisions you’re making and the impact they are having?
What dice are you rolling each day? Better choices are made when you know and are OK with how they roll. Take time out to examine how things stand for you.
Lifestyle Is your lifestyle satisfactory? Do you get time out from your business? Are you confident choices made while you’re not there are in line with your plans?
Capital Are you satisfied that you are getting the returns from your capital investments?
Financing Are in control of your cash flow and satisfied with what’s happening?
If you don’t answer these questions with a 100% positive YES! then you should take some time out to consider your options to improve things.
An interesting challenge is to determine how much money your business generates for you for each hour you invest. If you include all that “bleed” time you will get a clearer view of the real cost to you.
If you have decided you want to improve your situation you don’t have to go it alone. We can help you analyse what’s happening, help you identify options to help you find the best solution for you.