Lynne Franks talks about the value of money and our attitudes to it, as a foundation for starting your own business.
So many of us become uncomfortable, even creatively blocked, when talking about money. Financial independence is one of the main reasons given by many entrepreneurs for starting a business. Being in control of how you earn your living and how you manage your own finances is one of the most empowering experiences that one can have, and any human being is capable of it in today's world.
Regardless of the sexist or stereotypical conditioning you may have been brought up with, now is the moment to seize your power and bring finances under your own control.
It's important to remember that financing a business doesn't have to be a mystery. The basic rules are: whatever money is coming in has to cover whatever money is going out, and you've got to have access to enough money to initially fund your enterprise without becoming financially strapped.
Your attitudes
Let's take a look at your personal attitudes towards money.
Have you always been considered very extravagant or do you find it easy to stretch your money a long way?
Do you have a history of literally losing cash or cheques?
Do you enjoy gambling?
Do you find it difficult in your current situation to ask for more money, either from your boss or from your partner?
Do you like giving gifts but not receiving them?
Do you think it's possible that on some level you don t think you deserve abundance in your life?
I'd like to use myself as an example for a moment, and share with you how some of my attitudes about money have reverberated in my business life.
After my marriage of many years to my business partner broke up, I learned a number of financial lessons by trial and error. I'd relied on my ex-husband to arrange all our financial affairs, something too many of us women find easy to do. Once I was on my own, I had to start being responsible for my own finances again, and I made some stupid mistakes.
I trusted other people when I should have been more cautious. They convinced me to either invest against my better judgment or give them power to sign cheques on my behalf.
I let other people read the small print in documents for me or I just didn't bother. I was sloppy and lazy about financial details and, in the same way that I didn t bother to learn how to use a computer, I let other people handle financial matters for me.
I deserved what I got. But I wised up. Having started again in a new country, with two small start-up businesses, and gone through the process of putting a new, trustworthy team of advisers around me, I realised that, this time around, I intended to value myself, my work and my money. I always read the small print in my contracts, keep a close eye on the money that comes and goes in my businesses, and don't make unwise investments. Having said that, I'm still not the greatest when it comes to negotiating money.
The reason that I'm sharing my money hang-ups with you is that I'm sure that I'm not alone in my patterns. How many of you have made mistakes over money because you wanted to please others or because of laziness, fear or trusting the wrong people?
How to recognise your money patterns
Think of a time when you've had to ask for money that you deserve. Perhaps when you wanted a raise at work or when you were owed money or when a prospective employer or client asked you how much you'd like to be paid.
Did you find it easy to come up with what you considered a fair amount, or did you find it difficult even asking? Are you aware that you may have a problem receiving what you are entitled to?
Write down in your diary some particularly memorable or even painful experiences you ve had when asking for money.
Does a pattern emerge?
Is the very common problem of self-worth present in your life? Because, if it is, it s time for a major shift.
Recognising your value is an essential part of being a SEED entrepreneur.
So many of our patterns regarding self-worth and money come from our relationship with our parents and their own attitude toward money. For example, there was an attitude prevalent 40 or 50 years ago amongst the parents of the baby boomers that you get what you're given and should be satisfied with your lot. Such thinking would obviously discourage you from breaking the mould and striving to create something new.
Also, some of us may have grown up in families where parents didn't want their children to surpass them financially, or didn't teach daughters to be confident about making money. Regardless of your particular cultural or family background, it's time now to recognise who you are and value yourself for it.
If you already have a healthy perspective about your ability to earn and manage your own money, appreciate that about yourself, and recognise how it's going to help you as you plant your new business.
