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5 Things Successful Business Owners Have In Common

Over the past decade of working closely with clients, there are some standout attributes that I have noticed in those that I would consider successful. I know the term successful can have many different meanings for people, so for me, I would consider the following successful- having a work life balance here and now, paying themselves well, having a sustainable business and lifestyle, enjoying time away from the business, working towards their retirement goals, and giving back to the community or causes that are important to them. 

The first thing I have noticed is-

They don’t do it all, or know it all; they keep to the basics and hone their skills to be the masters of their trade or business. Don’t keep trying to reinvent the wheel at every opportunity. They work smarter not harder and this includes 

Outsourcing, whether that be employing someone, engaging  a short term or long term contractor, And this may be in personal life as well as business life.

Engaging with a mentor or coach that has specific skills to assist you in what you need strengthening in

You will constantly learn and grow in business

You either grow by learning yourself over a longer period of time, or you commit to investing money in yourself with mentors or coaches to get the results quicker.

Secondly, is around-

Planning and Goals– they appreciate the time now and are always working towards their goals, whether that be a 6 month, 1 year, 5 year or longer goal. It helps them to get through the challenging times.

They make decisions for themselves based on what they love to do, what they’re strengths are, and what their business model is.

They also celebrate success along the way to achieving the goals they set, and they aren’t tied to the outcome of achieving the goal. For eg. currently earning $100k per year, the goal might be to earn $200k for the year, and if they reach $180k, they will still celebrate that and not give up because they didn’t reach $200k.

Goals are the pathway for the future, simply to keep you moving in the right direction. It’s ok to meander a little, but it’s important to know where you are heading in the first place, and not just have it in your head. Have it written down, have it printed near your desk, or have it as a reminder on your phone. Come back and review them often.

Thirdly is-

Consistency– They keep showing up. 

There are times when we don’t feel energized, it becomes boring, or we simply don’t feel like it.

On those days, we have a choice to take a day out, and do something to re energise ourselves so we can come back the next day to show up fully, or we can acknowledge that we are feeling that way and get to work and do it anyway.

Sometimes taking a step back and giving ourselves some space to unwind and do something fun, relaxing, or physical is exactly the endorphins needed to reset the body and allow us to get back into creative, or getting stuff done mode.

It’s important not to get stuck in being unmotivated for long periods of time; this will be the slow death of your business and highlight that something is really out of alignment for you personally, and you may need some help to get back on track.

Consistency is key! Keep showing up!

Fourthly- 

Money– They understand and know what the purpose of their money is.

They spend less than they earn, put aside GST, ATO obligations, have more than one bank account that they are operating from, and they have savings. They don’t live week to week or paycheck to paycheck in either their business or personal lives. More often than not, this is one of the first areas business owners get assistance with.

Even if you aren’t a numbers person, there are simple things you can do yourself to manage and understand your finances. There is a great book that I recommend to my clients, and that is Profit First by Mike Michalowicz, which is designed for business. However,  you can easily implement Profit First in your personal life as well.

Lastly- 

Community/Cheer squad– They surround themselves with successful people.

Looking outside their immediate friends and family, who sometimes seem like they are supporting and cheering you on, can actually be putting their own fears and opinions onto you. 

Look wider- such as other business owners in the same industry, or other industries that you may work alongside. Align yourself with others who understand business and are doing well. They are walking the talk. 

There is a quote by Jim Rohn that says, “ You are the average of the five people you spend the most time with”, so think about who that is for you. Is it working in your favor? 

So just to recap, the five things in common are-

They don’t do it all or know it all

They plan, have goals and review them often

Consistency- they keep showing up

Money- they understand the finances in their business and personal lives.

Community- surround themselves with successful people

The important thing to remember in business, is that we are choosing to be self employed and it gets to be enjoyable and fun. 

Sure, there will be challenging days; be kind to yourself on those days and come back to WHY you are in business.

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The Power of Financial Literacy: Removing uncertainty around your finances in one simple step

Picture this: the anxiety that stems from not knowing where your hard-earned money goes, living paycheck to paycheck, constantly questioning your financial situation. It’s a stress many of us are familiar with, and it’s far from a pleasant feeling. For countless individuals, it’s almost debilitating, causing sleepless nights and an overall sense of unease. The struggle to grasp personal finances is a common thread, one that often begins after leaving the structured world of education and stepping into the vast unknown of adulthood.

 

As someone who’s been entrenched in the world of business and finance for over 15 years, I’ve had my fair share of conversations with clients grappling with this very issue. The sentiment echoes: where do we even begin in comprehending our financial landscape?

 

Here’s the game-changer: Separate your money! Yes, I’m referring to the power of multiple bank accounts, a modern take on the envelope system.

 

Why, you ask? Excellent question!

 

It’s human nature to consume all available resources, a phenomenon known as Parkinson’s Law. Think about time: if you’re given two weeks for a project, it takes two weeks. Give the same project three days, and you’ll find a way to get it done in that time frame, often with more creativity and focus.

 

Apply Parkinson’s Law to finances, and keeping all your money in one account can lead to its rapid depletion.

 

The confusion and uncertainty arise here. You might wonder, “I make a good income,” or “My business is thriving,” yet the money seems to vanish as quickly as it comes in.

 

This is a common story among my clients. Even with budgets and regular financial reviews, they struggle to identify where their money goes, often finding it hard to pay themselves, ensure profit, or manage bills effectively.

 

So, how can we unravel this complexity? The solution is simpler than you might think: separate your money.

 

By distributing your money across various accounts, you give it purpose. You choose where it’s allocated and set goals—be it hiring new team members, paying yourself a steady wage, managing bills, or even funding a vacation.

 

The beauty is in the clarity and immediate access to information. No need for extensive reports or data gathering; your bank account balances show you exactly where you stand. A simple habit of logging into your online banking gives you an instant overview—aligning with how we naturally behave.

 

How can you implement this strategy? It starts with opening new bank accounts. Consider your current spending patterns and create categories. Begin with an Income account and a separate Expenses account. For businesses, this could be Operating Expenses; personally, it might include daily expenses. Having a dedicated card for this account encourages awareness and oversight, prompting you to evaluate recurring expenses and potential savings.

 

Following this, additional bank accounts can be created, tailored to different financial goals. In business, you might have accounts for GST, Income Tax, Owner’s Pay, and Profit. Personal accounts can include Savings, Spending Money, Medical, Rent/Mortgage, among others.

 

Choose fee-free and easily accessible accounts, avoiding unnecessary fees associated with multiple cards.

 

The magic lies in the process of transferring money. Immediately allocate a portion of your income to each account. This eliminates the guesswork when expenses arise; you’re already prepared.

 

Consistency is paramount. Weekly or fortnightly transfers maintain the flow. It might seem intricate, but the outcome is profound—unveiling financial clarity, controlled spending, and an awareness of any leaks or overspending.

 

Results? Astonishing. Clients with the same income started saving, paying bills promptly, and enjoying guilt-free spending. The process became a habit that diminished financial worries, replacing them with excitement over savings growth—a previously unimaginable reality.

 

This approach offers simplicity, empowerment, and purpose to your finances. You dictate the direction of your money.

 

For those seeking more, resources like the “Profit First” book delve into this approach. Remember, you can always access the first two chapters on my website: www.savvyofficesolutions.com.au.

 

In a world where financial ambiguity can be overwhelming, this simple strategy shifts the power back to you. It’s time to regain control and shape the purpose of your finances.

 

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