The Entourage, emotions impacting finances, startups

Writing as part of our contribution to The Entourage Blog, we look at how emotions can impact your business finances.

We work with hundreds of startups and small businesses around Australia and often see emotions dictating the look, feel and performance of how people describe their business’ finances. Business owners can overplay their success and work more from a vibe then a genuine understanding of what is actually happening in their business.

While the emotional attachment and passion you have towards your business is probably the reason you have a level of success in the first place, it’s even better sometimes to take a step back (and away from the emotion) and look back into your business. Why? Because starting to think like an investor or advisor to your own business may tell you some interesting things.

So what are some things you should be careful of with your business finances?

  1. When making decisions, don’t look at the time and money you have invested into your business or product line. It just starts to become all too emotional if you do. If what you have worked on to date won’t help you achieve your goals, maybe it’s time to take a different approach. It’s like the saying, ‘don’t throw good money after bad’, the same applies to our time. Are you really willing to continue to invest your time and effort into something that won’t help you achieve your goals?
  2. Numbers don‘t lie. When looking at the financial and customer metrics, use them to form a complete picture of how your business or product lines are going. Why? Because the numbers will help you to work out what doesn’t work quickly!

So as a takeaway, and to ensure that the emotion within your business is used positively to achieve your goals, use your numbers to measure your business performance.

And you can read more about emotions and finances in the full article here.