Happy Monday, fabulous!
Bookkeeping tip: Are you overspending? For every dollar that your business earns, put aside 10% in your business savings. This is to be used for fun projects or for those "oh no, I'm running out of cash" moments. For a more thorough breakdown on how much you should spend on marketing and other expenses, check out my book, The Simple Guide to Accounting and Financial Strategy for New Entrepreneurs.
This past week Blake Lively announced that she was shutting down her lifestyle website, Preserve, after only one year.
I have nothing but love and respect for Blake for publicly sharing her struggles as an entrepreneur. As someone who also had to shut down a business, I can completely relate to the sense of embarrassement, frustration and sadness she must feel.
Blake's business woes is a reminder that even if you have a lot of money and connections (Martha Stewart endorsed her website), it is not a guarantee for success. Building a business is hard. It takes blood, sweat, tears and the ability to be financially savvy.
With the media rampant with stories about Unicorns, billion-dollar valuations and overnight millionaires, it can be disheartening as an entrepreneur if your business seems to growing at a snail's pace.
But, if you want to be successful over the long-term, slow and steady wins the race. Your business will continue to morph and change as new opportunities arise and as you continue to develop as a person.
You may love working with 1:1 clients now, but in a few years you may want to scale that back and offer group sessions. Or maybe you love your brick and mortar shop, but at some point want to start travelling. So, perhaps you launch an e-commerce site to increase your earnings and reduce your in-person workload.
Layering is the best way to build a successful business. As Oprah says, "You can have it all, but you can't have it all at once."
Even if you are great at multi-tasking, you need to accomplish one thing at a time in your business. Do it well and then move on.
And you have to be mindful of your expenses. It is really easy to spend. But, the successful entrepreneurs know that the name of the game is not how much money you make, it's how much you keep.
Take action now! Open your bookeeping program and run your Income Statement report. Check to see how much money you're keeping in the business at the end of each month. Is there a way for you to keep more of it? Even it's only $5- it adds up.
Danetha Doe (@danethadoe) is a business strategist and author of the Simple Guide to Accounting and Financial Strategy for New Entrepeneurs. Selected as one of the Top 40 under 40 accounting professionals by CPA Practice Advisor, she helps entrepreneurs take their business to the next level. Click here to find out more about working with her and here to join her free weekly newsletter.