Money matters and our mindset around money and our own self worth and value is key when running a business. So we asked Sally Munday, Business Coach to explore the subject of Money Mindset and its impact on small business owners. Here is what she had to say.

We all usually start our own business following a personal passion or to have a better quality of life, but we don’t generally do it just for that, we want to make money right?

But how do you feel about money?  What’s your relationship like with your finances?

Perhaps you’re frustrated your investments aren’t paying off?  Or you get nervous when telling people how much you charge?  Are you often giving discounts to attract business rather than offering your products or services at the value they are truly worth?

These feelings can make an impact on the way we feel, how we run our business and how we live our lives and this can have a huge impact on things such as the health of your finances – and that is what I want to talk to you about today. Money mindset.

What exactly is ‘money mindset’?

Simply put, this is the way that you think, perceive and the attitude you have, about your relationship with money, your finances and your wealth.

With such financial turbulence over the last few years, it’s never been more important to really understand your thoughts and feelings around money, and how this can improve the way you budget, spend and earn. And don’t we all want to be better at those?

There are, of course, tangible actions you can take to help these issues, but unless you really understand and believe that you have the power to change your relationship with money and that you can take control of your finances, then often you will get stuck in the never-ending battle that is your bank account.

A study has shown that our relationship with money and financial habits are formed by the age of seven. While these can develop and change, generally there are some beliefs and behaviours within us that influence how we think and feel about and treat money as business owners. Getting to understand these beliefs and where they have come from can give you the opportunity to accept or adapt where needed, in order to build a more positive and abundant bank balance.

But how can money mindset really help?

 Clarity on why things are as they are

Running your own business can be stressful. We all know how important your determination, resilience and self-belief are to get your business up and running and to keep going, so we can apply the principle of building our strength of mind around how you approach budgeting, investing and pricing.

For instance, when you’re setting your prices are you nervous about increasing them or are you always giving discounts and freebies, therefore potentially devaluing your services or products, and maybe even yourself.

Reviewing your financial decisions could help you to identify patterns in your behaviours and reflect on where these have come from. This may be what is holding you back from making decisions that could positively impact your business, or are you following your gut and spending where you think you should, rather than really understanding the impact this will have on your accounts?

Having clarity about the way you feel about your finances and accounts can build your resilience and give you focus on other areas to work on, allowing you to grow your business, celebrate your successes or have more quality time at home.

Confidence with your numbers

Secondly, you don’t necessarily need to be checking the bank account each day, but you certainly should have regular reviews of your finances, and these reviews shouldn’t feel daunting or scary.

By understanding how you think and feel about looking at your numbers, you can take back control of your own outgoings and income. You can address what’s been driving the fear and doubt you have around managing your accounts, and if relevant, get the right level of support to grow your confidence with being clear on your numbers.

Building confidence to review regularly means you’ll not only be able to spot if anything isn’t quite right with a payment going out, or if a customer is clearing their debt like they said, but also you will know that you are protecting yourself and your business, and you’ll be confident that you can pick up any issues quickly.

Also, sometimes, going through your accounts isn’t as bad as you think and that stress and worry was for nothing.  So think of all that energy you wasted on worrying about which bill to pay next or by feeling frustrated that your income isn’t reflecting the amount of work you’re putting in?

All that mental and physical effort taken up by these negative feelings could have been put to use to more positive things.

Empowered future planning

Finally, having a confident and positive money mindset can really improve the quality of your future planning.

If you’ve got the clarity around what you should or shouldn’t be paying for and earning and the confidence in your numbers, building a plan for the future will then start to feel exciting and empowering.

You will be able to set targets that are challenging but not unrealistic, and you will be able to have the belief and confidence in yourself and your business that you can reach these.

Having the right mindset and understanding of your beliefs and behaviours doesn’t take away from the hard-work and determination that is needed to run a business and grow your income, but it allows you to make more informed, confident decisions. It allows you to understand what support you need and can take away that fear or uncertainty about your finances, allowing you to lead the business and life that you started out on your entrepreneurial journey to achieve.

To learn more about Sally’s Money Mindset coaching programmes and how these can help you get the clarity, confidence and empowerment you need around your financial goals then email coaching@sallyetmundy.com or contact her through social media.