How Healthy Is Your Business? (Appearance on Next Level Life Podcast)
Sep 12, 2024Have you ever wondered just how healthy your business really is? In this episode of "Next Level Life" podcast, hosted by the insightful Christine Corcoran, Shannon shares her extensive knowledge on financial health, scaling businesses, and creating long-term wealth.
Shannon emphasizes the crucial difference between profit and cash flow. While focusing solely on profit margins is tempting, cash flow is the lifeblood of a business. Effective cash flow management involves understanding the timing of money inflows and outflows, allowing for smarter financial decisions, like negotiating payment terms with vendors and prioritizing cash flow over early payment discounts. Christine supports this by highlighting the importance of setting measurable goals linked to financial data.
Many business owners view money with fear and negative connotations. Shannon and Christine discuss shifting this perspective to see money as a tool for growth and opportunity. Shannon shares a story of advising a client who was hesitant to hire a high-level leader due to financial fears. This narrative underscores the importance of setting clear expectations when hiring and investing in top talent.
Shannon also delves into creating cash flow forecasts, mapping out anticipated cash inflows and outflows over a six-week period. This isn't just a technical exercise; it's a strategic roadmap. Building sustainable habits to maintain financial health is akin to maintaining a healthy lifestyle—requiring discipline, commitment, and consistent effort.
Another critical aspect discussed is the legal separation of business and personal finances. Shannon explains that commingling finances can lead to legal troubles and make it difficult to measure performance accurately. Christine adds that maintaining this separation is essential to avoid IRS audits and legal issues, emphasizing the need to treat the business as its own entity.
Shannon offers listeners a bundle of her five best resources for new business owners or those looking to clean things up. This includes a five-day mindset refresh, a business financial quick starter course, a tax deduction guide, a money pro matchmaker guide, and a cash flow forecasting mini-course. These tools are designed to simplify the journey toward financial empowerment.
Both Shannon and Christine emphasize the importance of self-awareness and empowerment in business. Successful business owners are not afraid to seek help and expertise in areas where they lack knowledge. Shannon encourages listeners to shed their egos, embrace learning, and take proactive steps toward understanding and managing their finances.
The episode ends on a note of encouragement, inviting listeners to check out Shannon’s work and the valuable insights she offers. Whether you're looking to scale your business, save on taxes, or create long-term wealth, the key is to stay informed, proactive, and open-minded.
What you'll hear in this episode:
07:26 Embracing the power of data for health.
12:22 Separate personal and business finances to avoid audits.
14:34 Combining accounts impacts business health and awareness.
19:35 Financial planning: cash flow, expenses, investments, forecasting.
21:23 Women aim to replace old corporate jobs.
24:07 Hiring employees changes perspective, motivates proactive action.
27:56 Contact companies to adjust expenses for cash flow.
29:54 Anxious for second paycheck but remained empowered.
35:29 Open relationship with accountant is key for growth.
37:31 Business success requires focus beyond technical skills.
42:09 Invest in top talent for key roles.
46:21 Good SOPs, strong financials, reduce risk, recurring revenue.
48:20 Train and delegate for business and client success.
If you like this episode, check out:
Why You Should Tell Your Kids to Study Accounting
Want to learn more so you can earn more?
Transform your small business journey – download the Small Business $tarter Kit here.
Visit keepwhatyouearn.com to dive deeper on our episodes
Visit keepwhatyouearncfo.com to work with Shannon and her team
Watch this episode and more here: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
Connect with Shannon on IG: https://www.instagram.com/shannonkweinstein/
The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
