Down But Not Out

Diane Darling is a great example of a professional woman who learned the hard way about unspoken money messages and how they can negatively impact your business. Recently, she was profiled in the Boston Globe and her story inspired me to give her a call. Diane and I chatted about what she learned over the past decade about women and money and how to avoid sliding into debt like she did.

Diane offers her fellow business women these 4 tips:

Keep business money and personal money separate.
Maintain a separate checking account for your business. This is very important if you want to create a fiscally responsible business, but is so often overlooked by those new to the entrepreneurial world. Many business owners learn this lesson the hard way and despite being told by their accountants to do things differently, don't take action. If you run your business like a hobby, it is destined to fail. So be financially intelligent and visit your bank today to establish a business account, if you don't have one already.

Being overly optimistic about money can lead to bankruptcy.
Diane described how she never worried about money and always felt that it would just come to her. This attitude contributed to her business failing financially and her falling into severe debt resulting in her living at the local YMCA because she could no longer afford rent. Take time to learn about your thoughts and beliefs about money and how these conscious and unconscious messages directly impact your bottom line. Attend my upcoming teleseminar, Making Peace with Your Purse, and learn skills for understanding your financial mindset and how you can move towards positive behavioral change. Diane learned the hard way, but you don't have to.

Make time to deal with your finances.
Many business women tell me they just don't have time to balance their checkbook, look at their profit and loss statement or learn more about the money side of their business. Diane was just the same way. She now believes if you can't make time for your finances, you have no business running one. Money is part of life and the sooner you learn to make your accounting as important as getting groceries for the week, the better off you will be. Make an appointment to have a financial meeting even if you are the only one that attends. Make it as high a priority as a meeting with a potential client. The cost is too high if you don't.

Know that it takes time to build a business.
Diane, like many new business owners, did not understand the time and energy it takes to build a profitable, sustainable business. There is no get rich quick scheme. Building a business takes time, energy and a desire to work hard on all aspects of the company including the financial side. It is okay and advisable to get help from others in building your company. Check out the Business Forum co-facilitated by Susan Hammond of scHammond Advisors and yours truly. It is a great way to learn from experts and others who want to create sustainable businesses along with you.

Diane has many more gems to share with you on this topic. My hope is she will write a book about her experience and I will be first in line to buy it. Remember don't take my word on it, take Diane's. She was down but by no means is she out!