If you ask your employees or suppliers how you’re doing as the captain of your company’s financial resources, you’re not likely to get an unbiased reply. But do you know who will likely give you a much more honest answer? Your spouse.
Your spouse wants you to succeed. He or she may crave your success even more than you do. And because of that genuine craving, your spouse may be able to help you get an honest assessment of your financial management skills that you won’t receive from anywhere else.
If you’re like most entrepreneurs, it’s a wake-up call that you really need.
Here are three specific gut-wrenching questions that — odds are — reveal that you suck as the financial decision maker for your company. Ask your spouse about each one of these, and see what he or she has to say about them. Then make your company better.
1: Am I vigilant about bookkeeping?
If your spouse’s answer is anything other than “yes,” you’re wasting your time as an entrepreneur. It’s common for visionaries — including entrepreneurs — to say they’re concerned about the bottom line, but to have no actual idea what the bottom line looks like. Many don’t even know whether they are legitimately profitable or bleeding red ink.
The harsh reality is this: If you’re not being extremely vigilant about bookkeeping, you’re not building a business; you’re building a job. What’s more, you’re building a job that when the IRS decides to take aim at you — whether through your errant tax filings or random audit selection — you’re going to be unable to defend yourself, no matter how pure your actions really are.
Another big consideration is this: Without strong books, your business can never be sold. What this really means is that your business has no value independent from the effort that you put into it. Without well-kept books, your business’ assets — real estate, vehicles, intellectual property, etc. — have no value because assets have value only when they’re accounted for.
Always remember — there’s no success without measurement, and your company’s books are the official scorecard of your success.
2: Am I disregarding our financial future in favor of living large right now?
If your spouse thinks you’re spending too much of your profit now at the expense of your future needs, you may have a real problem.
The first taste of financial success for many entrepreneurs results in predictable actions. They’ll buy a new house, a new car, a new boat or maybe take the vacation of their dreams. It feels easy to justify because you’ve worked so hard, and you feel you deserve it.
But delay the gratification just a little longer. As Dave Ramsey says, “Live like no one else today, so you can live like no one else tomorrow!”
A great way to accomplish this is to…
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