“Anxiety is caused by a lack of control, organization, preparation & action.” — David Kekich
The above quote was posted to Mackey Advisors Facebook page recently. As I read this, I was surprised as to how much it hit home with me. When anxiety takes over I tend to be counterproductive. I have been working with businesses for almost 19 years and have encountered quite a few anxious business owners. While their reactions might not be the same as mine, the underlying source of anxiety is the same. Lack of control, organization, preparation and action are the root cause. Below are a few remedies to help owners with their anxiety surrounding their business.
- Prepare an Annual Budget – Take time prior to your fiscal year and plan your income and expenses monthly. This helps to prioritize expenses and achieve your financial goals. Preparing ahead of time will allow you to be proactive when any unforeseen expenses arise. A carefully thought-out budget is a critical tool to navigating your business to prosperity.
- Implement a Forecasting Tool – As much as we would like to be able to predict future business and future sales, things can happen that affect your budget, such as taking on a larger client or losing a client. Implementing a forecasting tool that looks 3 months ahead will help you make the necessary adjustments in spending and keeps you focused during the year as the business changes.
- Cash Flow Projection – When cash is low or you invest in additional assets within your business, anxiety will rear its ugly head. Using the budget and forecast from above you will be able to put together a cash flow projection. As we know, cash is king. Having a fantastic year doesn’t always result in great cash flow. A projection will help to quickly spot problems with customer payments and will also know that the business can pay its suppliers and employees.
Once you have implemented these remedies, business owners will now be able to take control, get organized, be prepared and take action.