We all love the come back hero.
It is reassuring to know that major set backs and obstacles may only be blips along the path to arriving where we want to financially. The rise and fall and rise again of people like Donald Trump and Anthony Robbins are greatly inspirational to the rest of us mere mortals.
But what about those that seem to rise and fall repeatedly even in the absence of major set backs? And even more fascinating are those that do it with the full acceptance of those around them, despite the dire consequences.
It is impossible to ignore the impact of the economic situation on small businesses; and I am desperate for owners to make understanding what their money is doing on a monthly basis a priority,
However even when armed with all the information required, the person with the information still may continue in exactly the same way as before; even though it is obvious to them what the consequences could be. Even threatened bankruptcy may still not be a big enough incentive for change.
I have witnessed over the years many a falling out between directors or really damaging; a director or owner who is killing company finances and the staff are powerless to do anything about it?
“there was £1000 in that tin at the beginning of the week and now it’s gone and and there are no receipts”
I have seen hundreds of pounds spent on children’s toys and clothes from a business account, with the intention of replacing the money, but it never happens.
I have seen businesses close because they owed money to the VAT man that they couldn’t pay because they spent the money. They open up again as a new business. Go through the process of setting up separate bank accounts so they can transfer money each month for VAT and PAYE. Then 6 months into the new business these additional accounts are still at zero, 2 VAT quarters have passed and there is no sign that any VAT or PAYE has been paid to date.
But there are countless invoices for SatNavs, MacBooks and large amounts of stock from suppliers that want payment up front for clients that pay late.
How do you tell a business owner that the business is fine just as long as they are kept away from the money. To show my age. In the days when writing a cheque was the main way to make payments. It and requiring 2 signatures before an expense could be authorised was commonplace. It was a good way to keep some semblance of control. Though not infallible.
The advent of online banking kiboshed this to some extent; as I found to my cost. There were a number of businesses I worked with in my days of naivety and blind trust where I would log on to the bank account in trepidation at what I would find. It was a regular occurrence to see large sums of money transferred out for non business items, while I knew the VAT and rent was due. Or there would be large advance payments for bulk stock items, before they knew if they had orders for them, because “it was a good deal”.
And in true enabler fashion, I would question the expenditure, make disapproving sounds, may even point out the knock on effect, but with no real conviction or hope of being listened to. The avoidance of conflict was always paramount. I was too inexperienced then to have the guts for tough love.
The ego has a lot to answer for. Many a business owner has ignored the fact that the big client they crave could actually be the worst thing that could have happened to them; because their monthly accounts show they do not have the money or capacity to supply or service them without putting themselves in difficulty. The kudos of having that client appears – on the surface – more important than the very survival of their company.
As the saying goes “If you keep doing what you’ve always done, you’ll keep getting what you’ve always got”
Yet how many of us after nodding in excited agreement, promptly go off and do just that. Clearly having knowledge is not enough in many cases.
To tackle the deepest depths of our psyche in order make great changes can be a long as it is arduous, and in the meantime money and financial security is being lost.
In the early days I was very sceptical about coaches who focused on the emotions in terms of business. My attitude was always make enough money and you will feel better anyway. But then it is clear the possibility of losing it all again never really goes away for many, so the need to address the emotion or subconcious began to make more sense to me.
And lets face it, not all millionaires are happy.
Though I still believe that we can put in place and follow through on plans of action that keep us on the straight and narrow despite our own shortfalls.
Accountability is a very sexy word in business circles, but it’s impact is indisputable in helping to keep otherwise poor decisions to a minimum.
Just the fact that a business has hired Precision or Financial Gym to do their figures is in itself a big step for an owner who only ever had to divulge their private affairs to their accountant. In the case of annual accounts the accountant is often is only seeing the overall picture. Where I would be seeing the deepest darkest detail of how that picture came about.
The lovely thing is that initial reticence is replaced by relief that they are no longer alone and they can discuss their issues with no fear of anyone else knowing.
I have had my own setbacks and used techniques and unrelenting energy to turn things around, but no man is an Island. Do not fight alone, even if you are a sole trader. Hire and get the support of experts. Be part of networking groups with a view to give and get business support and encouragement, rather than just to get business.
Try to stop gravitating towards people who blindly allow you to get away with murder, but court those who will be honest with you. It may be a great network as above or the no-nonsense mentor or business coach.
And as fellow business people, if a colleague of business owner is finding it tough;
Even with lots of money in the bank problems still arise.
Get in there and be a support system.
You never know when it could be you who needs it.
