How do you manage your finances for your business?

Do you fly by the seat of your pants and hope for the best at critical times like when bills or taxes are due?

Or, do decisions like…

• when / if / how much to pay yourself,
• when or how to reinvest in your business
• how often and how much to contribute to your savings account

give you a headache, make you sweat and grab for a carton of Ben and Jerry’s ice cream?

Headache or not, the reality is you need to be doing all three, even if you are just starting out. It sounds scary but it really doesn’t have to be.

The choice is yours – you can be a Money Goon or a Money Goddess.

Here are my 3 Tips for How to Remove the “Financial Fear” From Your Business.

1. Pay yourself: No ifs, ands or buts about it

   A big part of achieving financial freedom is redirecting your income and that includes paying yourself. Overcome the fear that more money might not come your way, and instead take strides toward keeping a portion of your earnings for yourself.

   Try incorporating these steps:

   • Open a separate business bank account and really step into becoming a professional business owner
   • Pay yourself at regularly set intervals – decide when paydays are, let’s say the first and fifteenth of the month and write yourself a paycheck from your business account on those days.
   • Hold yourself accountable – You wouldn’t stick around with a boss who didn’t pay you so don’t accept that treatment from yourself as a boss either. Give yourself permission to accept a paycheck, instead of worrying about unforeseen obstacles.

   Just starting out? Make a commitment to pay yourself a small percentage, even if it’s only enough for a latte. Establishing a routine – and getting the flow of money moving are the important parts of this step. As your business grows, so will your paycheck.

   The goal is to create balance and flow in your business. Taking home a paycheck rewards your hard work and keeps you from dipping into your earnings sporadically. Paying yourself is also a great way to acknowledge your hard work, which can only lead to more abundance and success.

2. Stay ahead of the game by reinvesting

   Reinvesting in your company is an important measure for any business aiming for success and financial freedom. My dad is a business owner and lives by the famous words, “You have to spend money to make money.” It wasn’t until I became a business owner that I understood what he was talking about. Admittedly, this can be a challenging part of owning a business, but it is crucial to understand that if you want to increase your income you must reinvest a portion of what you make.

   Whether you are an owner, renter, commission-based employee or contractor, this still holds true. We don’t live in a static world – things are constantly changing. We must all reinvest in new equipment and continuing education in order to stay on top of current trends in our industry. You will find that by spending money this way you will see the largest return on investment.

   Remember, clients are always looking for the “latest and greatest” treatments and products. By investing in yourself and your business, you will show up in the treatment room as an expert and a leader. Watch and see how this will help you become a booked solid client magnet.

   Create a plan of action and commit to it. Map out a few trade shows to attend, this is an amazing way to stay up-to-date and give you direction on where to spend money to improve your business.

   There is no excuse for not reinvesting. Industry webinars can be an affordable way to continue your education. In addition, there is some great spa equipment on the market for under $100.

   It is wise to seek guidance when you are ready to make a big investment. Turn to your CPA, financial advisor or even a business savvy friend for advice and make your decision with confidence. The bottom is you must invest on staying at the top of your game or you will quickly fall to the bottom of it where your clients are concerned.

3. A penny saved is a penny earned… so save those pennies!

   A savings account can be a valuable tool for revealing where you spend and how you can save better.

   Put a little aside every month – even if it’s just a few dollars. You will be surprised at fast it grows and motivated to keep it going.

   Saving will also help you avoid surprises at tax time. It is important to remember that an independent contractor needs to save between 30 and 35% of his or her income for taxes. There’s no good way to get around it so prepare for it ahead of time.

Remember, if you keep doing what you have always done, you will keep getting what you have always gotten. When you start paying attention to your financial picture, become proactive and responsible with your business income and start investing in yourself for the sake of your business, you send the message to the universe that you are ready and able to handle more abundance and that is exactly what will show up.