How do you become a CFO for your new business? What are some mindsets that might be stopping you from charging what you should be? How does raising your rate reflect positively on your true clients?
In this podcast episode, Joe Sanok speaks with Mark Butler about all things money and planning the financial year of your dreams.
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Meet Mark Butler
Mark Butler is the founder of the accounting startup Let’s Do the Books, as well as the bookkeeper, CFO, and confidante to top online entrepreneurs like Brooke Castillo. Before working in finance, Mark co-founded three online businesses that brought in close to $2 million in total revenue.
Today, Mark combines his business savvy with his certification in life coaching to help business owners take control of their finances and work through the shame and anxiety that almost always comes up when dealing with money.
In This Podcast
- Leveling up the finances in your business
- Transactional mindsets to curb
- Commonalties between financially positive business owners
Leveling up the finances in your business
To level up the finances in your business and minimize financial anxiety, the first step is to create a clear separation between business finances and personal finances.
That involves first acknowledging that their new online venture or their coaching venture is its own entity. It’s not a hobby, it’s not something that they carve out some of their personal dollars to put into … it is its own entity, and since it is its entity it needs its own … accounts in which all of its transactions take place. (Mark Butler)
This sounds simple but it is in separating the personal accounts from the business ones that someone can fully keep track of and see how the transactions are moving, both in their personal lives and to see how successful or busy their new business is.
At this initial level, you do not need to have some fancy corporation calling your financial shots for you. A basic system that you can follow is to:
- Go to the bank and open a new checking account,
- Get a new credit card,
- And then, as the CFO of your new small business, your only job is to be aware of how much and how often money is moving in and out of your company.
If they will just keep an eye on those things, in a non-judgmental way [and] in a non-self-critical way, then the information they have about how much is going out and how much is coming in will help them make decisions that they end up being happier with. (Mark Butler)
Transactional mindsets to curb
When people evaluate their transactions, most people get unnecessarily hung up on mixing in self-judgment and self-criticism while working with the numbers: try to avoid doing this.
Instead of dispassionately seeing the numbers, recognize the positive benefits that came from all these transactions.
How has spending this money positively impacted your business? In which ways will these investments bring about growth and change? These numbers do not reflect on you as the business owner. Think about money as a tool as well as an asset but try to not get hung up on the idea that the goal is only always “more money”.
Commonalties between financially positive business owners
1 – Awareness of what is being sold and what it is being charged for it. A good business owner will know the difference, and benefits, of selling few and charging more, and between selling many and charging less.
2 – Confidence in knowing that the service a business owner is providing is going to lead to positive change in a client’s life, and bringing the cost of that service in alignment with delivering it well to the client.
3 – Knowing the value that they have put into their work. Financially strong business owners know the worth of their work because they are the ones that have put in the hours and practice to get to where they are now.
Your audience is the same, where they’re in a position where their clients know that when they give a thought when they give an opinion, it’s coming from a place of such deep experience and expertise that it means a lot more than something that the person would’ve read in a $20 book. (Mark Butler)
In the pricing that financially positive business owners set, there lies the person with authority and confidence in the experience and knowledge of their skillset.
Books mentioned in this episode:
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Meet Joe Sanok
Joe Sanok helps counselors to create thriving practices that are the envy of other counselors. He has helped counselors to grow their businesses by 50-500% and is proud of all the private practice owners that are growing their income, influence, and impact on the world. Click here to explore consulting with Joe.
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