Money. It’s the leading cause of stress in America. It has the power to make or break relationships, aspirations, and businesses large and small. If you’re a business owner, money is constantly on your mind. Sometimes, it’s the only thing getting you out of bed in the morning. It’s normal to feel financial stress now and then. It may never go away, but it can be kept under control.
The last thing you need is unnecessary anxiety and busy work. You certainly don’t need the nation’s biggest stressermaking you unhappy and unproductive. Here are our tips to help relieve some of that financial stress that all business owners occasionally feel.
4 Tips to Relieve Financial Stress
1. Learn the Language of Finance
Do terms such as balance sheet, P&L statement, and profit margins make you suddenly want to do anything to distract yourself, like play Sudoku or watch cat videos? Do concepts like gross vs. net and business tax cause hyperventilation? If so, it might be time to reduce your financial stress by learning the concepts and language that will help you become more profitable.
Every business, big or small, needs a financial plan and goals. You didn’t need us to tell you that. But making a solid plan, and setting proper goals will become a lot easier once you know the language of money.
We’re not asking you to get a finance degree or become a CPA. It’s important to learn what you can without ignoring the other responsibilities involved with running a business. As you build your network, for example, don’t be afraid to start a conversation with finance professionals and ask questions. If you can hold an intelligent conversation with them without getting confused or immensely bored, then that’s an indicator that you’re on the right track.
There are many resources to help entrepreneurs become more money savvy. You could find a book on the subject, or sit down with that person at the bank who helped you open your business account. In fact, our MBO clients here at Entrepreneur Simplified get an in-depth education in business finance from other entrepreneurs, personalized to fit their needs.
Yep, we love to spoil them.
2. Make Good Use of Technology
Paper is good for rapid note-taking, birthday cards, and encouraging post-it notes. But now that we’re in 2016, it may not be the best place for your financial records.
When it comes to reducing financial stress, learning the software can be almost as effective as learning the language. There are a myriad of programs out there to help business owners manage their finances, and although they have a bad reputation of being complicated and expensive, that’s not always true.
Here at Entrepreneur Simplified, we use Quickbooks Online. It doesn’t cost an arm a leg, and it actually runs simple enough to reduce the stress of our accounting team.
A basic knowledge of using spreadsheets can also be very useful. They are a powerful tool for reducing financial stress. You have to admit, there’s just something satisfying about plugging in a few numbers and watching the program calculate the rest for you.
3. Get the Help you Need
Many business owners have a do-it-yourself attitude. This kind of thinking isn’t harmful in itself, but if not kept in check it can contribute to financial stress.
Remember, you’re a business owner, not a CPA. Running a company, particularly a startup company, often means filling a lot of different roles. But you don’t need to do everything yourself, and if you try, you might go crazy.
As your company grows, both in terms of personnel and disposable income, start asking yourself if it’s time to hire someone to help you manage finances. That can take the form of a new employee or an outside contractor. Either way, having an expert around to help you navigate the often complicated world of revenue, expenses, and taxes can relieve a lot of financial stress.
4. Don’t Blow your Mistakes out of Proportion
Being a perfectionist can be stressful. Don’t increase your financial stress by blowing your small mistakes out of proportion.
No business owner has ever made it big without living and learning. Making mistakes when handling money can be particularly scary, of course. A forgotten payment, an estimate for revenue or expenses that later proves to be way off, even a typo in your spreadsheet can seem like a costly error. But fear is even more costly. It’s what holds many business owners back from reaching their goals.
Reducing financial stress and moving forward without fear is a lot easier when you have all of your ducks in a row. Go through the proper initial steps, such as applying for a business license and EIN, opening a company bank account, and getting insured. After that, keep diligent records of all your company’s transactions. Being consistent and thorough will reduce fear and relieve financial stress.
If you’ve been diligent in following the right procedures and keeping solid records, then you should start trusting yourself more. Trust that everything will work out if you’ve done your part. The truth is, most finance mistakes can be fixed, and many of them without too much hassle. Take a step back and appreciate that you’ve created something beautiful, your business. Find your financial zen, regardless of circumstances. Don’t give in to financial stress every time you, or someone who works for you, makes a mistake.
When it comes to money, getting stressed out is the easy thing to do. Staying calm takes a deliberate effort. We hope all you business owners out there will use these simple steps as a way to reduce your financial stress.








