Why You're Afraid of Your Business Numbers (And How to Fix It), S2E18

Know Your Numbers

There is a number in your business you probably already know you need to look at.

Maybe it's your monthly revenue.

Maybe it's your expenses.

Maybe it's your debt.

Maybe it's the amount you actually need to earn every month for your business to support your life.

And sometimes, instead of looking at that number, we avoid it.

Because what if we don't like what we see?

But here's the problem:

Avoiding your numbers doesn't change them. It only keeps you from doing something about them.

Financial clarity begins when you are willing to discover the truth about where you are.

And that truth gives you something powerful:

A place to start.

Financial Discovery Changed the Way I Look at Money

For years, I had a budget.

I knew what bills needed to be paid. I tracked my money. And once I learned spreadsheets, baby, it was on and cracking. 😂

But looking back, I realized something.

I wasn't really managing my money.

I was tracking where it went.

There is a difference.

My real journey with money management began when I learned about bucket budgeting at a conference.

The concept was simple: instead of treating all of my money like one big pile, I could divide it according to its purpose.

Of course, I went home and built a spreadsheet.

Because numbers don't lie.

That simple idea eventually became much more important than I could have imagined.

When my divorce resulted in me having to rebuild my life, I spent a period of time living in a shelter by choice. I wanted every dollar I earned available to help me rebuild rather than placing that responsibility on family or friends.

And suddenly, those spreadsheets weren't just spreadsheets.

They were helping me create structure during a time when much of my life had changed.

Later, I attended the Millionaire Mind Intensive and heard similar principles about allocating money.

Then I discovered Profit First by Mike Michalowicz and began applying allocation principles specifically to business.

Later still, I learned another version of the concept through the 7 Steps to Freedom.

Different teachers.

Different systems.

Different terminology.

But I kept seeing the same principle:

Give your money a purpose before you spend it.

Turn the Number Into a Target

One of the biggest lessons I learned was simple:

Know your numbers.

You cannot create a realistic business strategy around numbers you refuse to look at.

Let's say you determine that your business needs to generate $5,000 per month.

That number may feel intimidating when you look at it as one big goal.

But let's break it down.

If you work 22 days per month:

$5,000 ÷ 22 = about $228 per working day.

Now we have something we can work with.

Instead of waking up thinking:

"I need to make more money."

You have a measurable target.

Making Money Is Only Part of the Job

Here is another lesson entrepreneurship taught me:

You need to become good at generating money.

The financial system cannot work if there is nothing flowing into it.

That income might come from:

• Product sales
• Consulting
• Coaching
• Affiliate commissions
• Services
• Digital products
• Gig work
• Multiple income streams

But once the money comes in, you have another responsibility.

You have to tell it where to go.

For example, business revenue may need to fund:

• Operating Expenses — what it costs to keep the business running.
• Payroll — what you pay yourself and eventually others.
• Taxes — money that isn't yours to spend.
• Profit — money intentionally reserved as profit.
• Contribution — money designated for giving.
• Wealth or Investments — money positioned to grow.

Your percentages will depend on your business, expenses, goals, and circumstances.

The important principle isn't copying somebody else's percentages.

It's knowing yours.

Don't Borrow From Yourself

This one came from experience.

I had created a system.

The accounts had purposes.

The money had jobs.

Then I started moving money around.

"I'll put it back."

Have you ever told yourself that?

I had enough money sitting there, so I figured I could borrow from one category and cover something else.

But every time I did that, I weakened the very system I had built to protect myself.

Eventually I learned:

Don't borrow from yourself.

• If the money is for taxes, it is tax money.
• If it is for operating expenses, it belongs to the business.
• If it is your profit, protect your profit.
• If it is your contribution money, let it serve that purpose.

The boundaries are part of the system.

Small Numbers Still Count

When I first started allocating money, some transfers were tiny.

I'm talking about $2.85 tiny.

But the amount wasn't the most important thing.

I was building the habit.

I was learning to give every dollar a job.

Small numbers allowed me to practice the same discipline I would need when the numbers became bigger.

Do not despise small beginnings.

— Zechariah 4:10

You don't need to wait until you're making $10,000, $50,000 or $100,000 per month to learn how to manage money.

Learn with the money you have.

Because more money without better habits can simply magnify the habits you already have.

Your Business Finances and Personal Life Are Connected

This is where financial management becomes part of lifestyle design.

Your business does not exist in some little box separate from your life.

Your personal finances affect your business.

Your business finances affect your quality of life.

And nearly every vision you have will eventually have some financial component attached to it.

• Want better health? There may be gym memberships, healthier food, medical care or training involved.
• Want to travel? That requires funding.
• Want additional education or certifications? Funding.
• Want to buy a home? Funding.
• Want more time with your family? Your business may need enough revenue and structure to allow you to step away.
• Want to contribute more? You need something available to contribute.

This is why I talk about becoming Aligned, Free and Funded.

Money isn't the entire picture.

But money touches a lot of the picture.

Stop Chasing Money. Start Funding the Vision.

There is a major mindset shift that happens when your money has structure.

You stop seeing revenue as:

"Look how much money I made!"

And start asking:

"What is this money supposed to do?"

That's different.

Your income begins funding the vision.

• Some funds keep the business operating.
• Some pay you.
• Some protect you from taxes.
• Some create profit.
• Some build wealth.
• Some allow you to give.
• And some should allow you to enjoy your life.

Yes, enjoy it.

I have an allocation for that too.

Call it play money. Reward money. Fun money. Whatever you want.

That money can pay for the manicure, the movie, dinner with a friend, an escape room, or my personal favorite — the VR arcade.

And I can spend it without wondering whether I just spent the electric bill.

That's freedom.

Not because you can buy everything you want.

Because you know what you can afford to spend.

Financial Clarity Creates Options

Avoiding your numbers creates uncertainty.

Knowing your numbers gives you something to work with.

• You can adjust.
• You can increase revenue.
• You can cut an unnecessary expense.
• You can change an allocation.
• You can set a daily income target.
• You can decide that your current business model simply cannot generate the income required to support the lifestyle you're designing.

But you can only make those decisions when you know the truth.

So here's the question I want you to sit with:

• Pull out the bills.
• Look at the accounts.
• Write down the debt.
• Calculate your expenses.
• Look at what your business actually earns.
• Then calculate what your life actually requires.

No guessing. No hiding. No judgment.

Just numbers.

Because numbers give you information.

And information gives you the ability to make a decision.

Give Every Dollar a Job

One of the tools I use in my business is Relay, which allows me to separate business money into individual accounts and automate allocations.

I still use my spreadsheets because they help me plan and adjust my percentages as my circumstances change.

The technology doesn't replace the strategy.

It helps me execute the strategy.

And that's the point.

Your financial system should help you consistently direct the money you earn toward the life and business you are intentionally building.

• Your Personal Growth.
• Your Relationships.
• Your Finances.
• Your Business.
• Your Quality of Life.
• Your Contribution.

Different categories.

One life.

Your money should help support that life — not quietly control it because you're afraid to look at it.

So get good at earning money.

Know your numbers.

Give your money direction.

And put it in position to progress you, protect you, and fund your purpose.

That's how you begin changing your relationship with money.

That's how you start creating financial clarity.

And that's how you Mind Your Business — the right way.