Listen on: Apple Music & Spotify

In this episode of the WorkPlay podcast, we dive deep into the world of finance for entrepreneurs with Belinda Rosenblum, founder of Own Your Money. With over 16 years of experience, Belinda shares invaluable insights on how to take control of your finances, grow your profits, and design a business that aligns with your life goals.

Separate Business and Personal Finances
One of the first steps to understanding your profitability is to ensure that your business and personal finances are completely separate. Belinda emphasizes, “I think kind of an initial mistake that I see is the separation.” This separation is crucial because it allows you to accurately track your business expenses and revenue without the confusion of personal transactions. By keeping these finances distinct, you can clearly see how much money your business is actually making and spending. As Belinda states, “To the extent that you’re not is just making life so much harder for you to actually understand the profitability of the business.”

Stay Up-to-Date with Bookkeeping
Regularly updating your bookkeeping is essential for making informed business decisions. Belinda points out, “If you’re tracking yourself and you’re behind, you are literally blindfolding yourself and running your business.” This lack of awareness can lead to poor financial decisions and unnecessary stress. By keeping your books current, you can easily assess your revenue and expenses, allowing you to make data-driven decisions. Belinda warns, “Imagine like trying to drive your business car blindfolded; you’re going to crash into things.”

Analyze Revenue Streams
Understanding where your revenue is coming from can provide valuable insights into your business’s performance. Belinda advises, “You need to see it by revenue stream,” as this helps you identify which products or services are most profitable. By breaking down your revenue, you can determine where to focus your efforts and resources for maximum impact. This analysis can reveal surprising trends, such as, “Oh my gosh, like I only sold X dollars of this one revenue stream,” which can inform your future strategies. Knowing your revenue streams allows you to make informed decisions about where to invest your time and energy.

Create a Financial Plan
Having a clear financial plan is vital for managing your business effectively. Belinda states, “We need it to write as a small business owner so that we can sleep better at night.” A financial plan helps you manage inconsistent income and ensures that you can pay yourself regularly. By outlining your revenue goals and expenses, you can create a roadmap for your business’s financial health. Belinda emphasizes, “When you can actually see the numbers, it could be so much of a more joyful process to grow your business.”

Evaluate Pricing Regularly
Regularly assessing your pricing strategy is crucial for maintaining profitability. Belinda notes, “If you’re getting all yeses on your sales calls, it usually means it’s such a no-brainer because it’s just too low.” If you find that clients are readily accepting your prices, it may be time to consider raising them. Additionally, if you notice that you are resenting your clients, it could indicate that your pricing is not aligned with the value you provide. As Belinda puts it, “We need to be able to articulate the value,” which can help justify higher prices and improve your overall profitability.

Belinda’s Advice to Current and Future WorkPlay Members:

“I think one of the most important aspects of having better visuals is that it creates more alignment between what you’re looking to charge and the value of the services.”