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Fiscal responsibility in Business: Do you have it?

This is a blog for the doctorok business section.

Do you live with your head in the clouds? Are you a dreamer? Is reality around fiscal responsibility in the too-hard box for you?

Or are you some who watches your accounts and takes action when need be?

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Most new businesses go broke when the dreamer who set them up finds out that they did not get the illusion they sought of a business that would make them financially comfortable. They find a hundred and one things to blame for the failure of their business but the truth is that they did not think through their business and marketing plan and stay to budget.

Behind every successful business is a mind that is constantly fiscally virulent and plans and stays on budget. Creativity and innovation are not able to flourish unless a business is soluble and profitable. People will not work for you for fresh air and bills must be paid.

The other day I was at a seminar and the presenter talked about it taking three years to make a business profitable. What I heard inside my head was someone who for the first three years of their business did no know how to run it efficiently and effectively.

They are what I call ‘flat earthers’. In other words their model of the world was only what they immediately saw and they were unable to perceive that the earth may be greater than their model so they only see is the earth as flat.

You should set up a business to be profitable from the outset. If it is not profitable, either there is no money in that market and you are chasing pipe dreams or you are fiscally irresponsible. It is, after all, supposed to be a business not an expensive hobby.

When I teach people how to run a business, I teach that you do not set up or run a business that makes no money. What exactly would be the point? Why would you set up a business to lose money, use up your savings or squander your inheritance?

However, so many people do and you can bet when they realise they did not think things through, they blame the failure of their business and that hundred and one mysterious bad omens.

So are you being fiscally responsible?

Do you check your accounts constantly?

Are you obsessed with figures?

If not, you will not be a successful business person and your company will not make money or a profit.

When I was at college aged 15, I reluctantly studied book keeping and accounting as part of my business curriculum. I hated it but it has stayed in my mind the whole of my life and helped me become a successful business person.
I learnt my numbers and investing strategies.

To be successful in business you must learn your numbers and be prepared to invest in your financial education; or you can spend years, like the presenter at the seminar I went to, running your business at a loss, pretending you are building the business, but in reality you’re going broke.

Which do you think is wisest?

Are you looking to grow your wealth? Join me in Sydney (Australia) for my 3 Day Money Money Money Mindset Bootcamp on 11, 12, 13 November to learn how to build your wealth from a ‘freak’ who beat all the odds.

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