Our CEO, Karyn Le Blanc, founded KGL Communications in 2019 with a passion for storytelling and a commitment to ensuring every voice is heard through strategic, impactful communication and marketing. She is like most business owners who go into business because they have a service or product that they want to offer to a demanding market. With few exceptions, the “business of running the business” is not something that typical entrepreneurs get excited about. Numbers can appear like the drudgery side to an endless to-do list, and financial data can tend to come out like the monotone drone of Charlie Brown’s school teacher.
But it doesn’t have to be that way
Numbers can also tell a story, and like all things, that story can be tailored to the narrative that you want to build your business to speak to. The mission and vision of the business are the foundation, clearly defined goals are the structure frame, and the financial strategy finishes necessary to construct the building. Your goals should define your profits, not the other way around. So, how do you make this happen?
- Accurate Analysis – You don’t know what you don’t know, and you can’t define what isn’t clear. Your first step to getting your finances to work for you is to understand where they are at. This means not just looking at your bottom-line number but getting into the detail. Is there an expense that is draining your profit? Is there a software that isn’t producing a return on your investment? How about your payroll? Understanding your expenses in light of percentage of revenue versus percentage of overall expense provides a much better measure of what you’re really spending and the burden that it is taking on your business.
- Pick a Goal – You can only do so many things at once, and your finances are the same way. Money can’t multi-task as well as we might want to force it to. While you can define several goals for your upcoming fiscal year, be clear on the priority of importance. Once you decide, stick to it. You will have to make decisions based on that goal, and it may involve sacrifice, but it will be well worth it to achieve a target rather than keep trudging through the slow progress of ambiguous direction. For example, you may want to concentrate on employee retention, so you will want to invest in a higher amount of benefit offerings or performance-based raises. You may want to expand your location to keep up with your growth, so you would need to invest in office repair and construction, which could require a short-term loan. You may want to concentrate on pricing more competitively to bring in new customers, so you would need to analyze your direct and indirect costs for your products. The point is that your goal should be the answer to every spending question that you have.
- Budget, budget, budget – Most are familiar with the saying “fail to plan, then plan to fail” and I have found that to be incredibly accurate when it comes to businesses. “Budget” does not have to be an ugly word. Look at your financial performance from the year before and map out the boundaries that you will need to have that are in line with the goal you defined. In this way, you are allowing the numbers to work for you, but it does involve accountability. Ensure you have a CFO you can trust—someone who upholds financial boundaries and takes accountability when progress stalls. It’s not just part of the job; it is the job. Not only does a budget define the parameters for spending, but it also provides the “on-the-fly” adjustments that may be necessary. If the year takes an unexpected turn, the budget acts as a safety net, reassuring you: “Don’t panic—I’ve got this under control.”
- Define your non–negotiables – Inevitably, things may not go the way you want them to. The volatile nature of the economy, the cost-of-living standards, and the price of materials all present challenges. Maintain control by having a plan around the challenge. Pick your top five expense categories and put protections in place to safeguard them from the strain of what you couldn’t plan for. This may mean that you have to let go of things you might not want to or delve into territory you didn’t want to have to walk through. Don’t give up, as every challenge eventually passes and if you’ve done your homework, your finances will weather the storm.
- Ask for help – You cannot run a business on your own. If you are a solopreneur, tap into resources that can cover where you can’t. Hire a dependable staff or outsource and create accountability. Everyone is on the same team and that team should all be on the same page as to what the expectations around the goals you set are as well as how to define success. Even if your team isn’t privy to the financials, they are all responsible for the income that you are bringing in, so make sure that you have trusted advisors in each area of your client/customer offerings as well as executive leadership. Executive leaders are all about the strategy of the business, so make use of that powerful resource.
Numbers aren’t your enemy—they’re the fuel that can launch you to success or send you spiraling toward failure. Don’t believe it? Just look at the financials of companies that have gone under, and you’ll likely see a lack of strategic direction in key areas. The “American Dream” is still within reach, and accounting doesn’t have to be a burden—it can be the silent cheerleader that’s been rooting for you all along.
