For many business owners in the fitness or wellbeing industries, the idea of talking about numbers makes them squirm in their seats a bit. They went into business to help others and yes, they know they need to make money, but old stories plus certain values and beliefs may make them feel that looking at numbers is a bit grubby. When I say numbers, I’m not just talking about money. I’m talking about the nitty-gritty details of your finances, client metrics, and everything in between. Understanding your numbers isn’t just for the financial whizzes; it’s crucial for the success and growth of your business.
Firstly, let’s address the elephant in the room: why do so many of us avoid looking at our numbers? It’s not uncommon, and there are a few reasons why this happens:
– Fear of Bad News: It’s natural to be scared of what you might find. What if the numbers reveal that things aren’t as rosy as you thought? For some it’s easier to stay in the dark.
– Fear of Good News: This may seem a bit weird but some of us are attached to a loyal story about struggle so the idea of it going well can be just as scary.
– Overwhelm: Numbers can be overwhelming. Many of us didn’t get into the fitness or wellbeing industry because we loved spreadsheets and profit margins. We’re here because we love helping people.
– Lack of Knowledge: Not everyone feels confident interpreting financial data. It can feel like you need an accounting degree to get your head around what’s going on.
– Other things are more pressing: If you own a small business, you are more than likely wearing many hats and fulfilling many different roles. Sometimes the numbers are not the priority and there are simply more pressing fires to fight.
Understanding these reasons is the first step to overcoming them. It’s also important that you then work on those reasons. One way to do this is to remind yourself why knowing your numbers is not just important but essential.
Secondly, let’s look at the benefits of knowing your numbers:
- Better and Easier Decision Making:
When you know your numbers, you make informed decisions. Whether it’s about pricing your services, investing in new equipment, or hiring additional staff, having a clear picture of your financial health guides you to make choices that benefit your business. Without this knowledge, you’re essentially poking around in the dark and hoping for the best.
- Identifying Opportunities For Growth:
By regularly reviewing your numbers, you can spot trends and opportunities for growth. For example, you might notice that certain classes or services are more popular than others. This insight allows you to focus your efforts on what’s working and do less of what it isn’t so you are delivering to your clients exactly what they want.
- Managing Cash Flow:
Cash flow is the lifeblood of any business. Knowing your numbers helps you manage your cash flow effectively, ensuring you can thrive rather than simply survive while running your business. For some of us this requires a mindset shift if we have a money story that is impacting our ability to generate more funds. Be curious about how you may be sabotaging your success here.
- Reducing Stress:
The unknown can be a major source of stress. When you’re not sure where your business stands financially, you can easily place yourself into your stress response and fight or flight can take over. Regularly reviewing your numbers can reduce this stress by providing clarity and control over your business’s direction. Knowledge is power but a part of us may forget that.
So what can you do to help shift your mindset and be more comfortable and even, dare I say it, excited about knowing your numbers?
– You don’t have to tackle everything at once – start small. Start by looking at one aspect of your numbers, like your monthly revenue or expenses. Gradually expand from there.
– If numbers really aren’t your thing, consider hiring a bookkeeper or accountant. There’s no shame in getting help, and it can free you up to focus on what you do best.
– Make it a habit to review your numbers regularly. This could be weekly, bi-weekly, or monthly – whatever works for you. The key is consistency.
– Be curious about where your fear or concern around knowing your numbers comes from. Is it still relevant now or is it a loyal familiar story? Is it even your story? Notice what the different parts of you feel and what they need. Think about writing your own story around knowing your numbers – one that makes you feel great and excited.
– Celebrate your wins! When you see positive trends or hit financial goals, acknowledge and celebrate them. This positive reinforcement can help shift your mindset to see the value in knowing your numbers.
In Conclusion…
Many business owners bury their head in the sand when it comes to knowing their numbers. Loyal stories and habits can get in their way and they end up sabotaging their success. But knowing your numbers isn’t about being a financial genius; it’s about understanding the heartbeat of your business. It can seem daunting at first, but taking small, manageable steps can make it much easier until it eventually becomes a habit. And, if your mindset needs to shift and change, remember to lead with compassion and curiosity and if necessary, get a mindset coach to support you.
Until next time,
Best wishes
Philippa x