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Fear and Figures

Free mixed numbers texture for layers
Creative Commons License photo credit: Pink Sherbet Photography

There are lots of great sources of information and help out there on marketing and branding and building websites and blogging. But, not too many are digging into the nitty gritty of … (ominous pause) …The Numbers.

Why? Because there’s a dark aura of fear and anxiety surrounding accounting and money matters.

The Number Whisperer

There’s a perception that being a number whisperer is the result of specialized training in remote camps in the dark and foreboding countryside and that veterans of the experience are given to talking in strange tongues (with acronyms like EBITDA, ROI and NPV) intelligible only to their cohorts.

Don’t Fear the Figures

Spot on branding, top notch marketing and a killer website are flamboyant super spies right now but don’t underestimate the stealthy undercover agents of solid business management and accounting. They’ve got your back and the hottest strategies in the web-o-sphere won’t go far if you can’t make any sense of your results.

Take charge of your numbers (unless you’re an Arithmophobe) and wring the useful information out of them. If your figures are starting to whisper among themselves and scowl in your direction, let me help. I’ll whisper them into shape and have them happily doing as you wish.

How are your numbers behaving and what do you think about it? Let me know in a note or the comments, your experience is important to me.

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What do Zombies and Cash Flow Have in Common?

construction sign
Creative Commons License photo credit: underbiteman

Nothing, really, but I wrote this post and it was dull, dull, dull; correct and all that, but excruciatingly dull. So I decided to spice it up with … Zombies! You were thinking I was going to say sex? I’m not that interesting.

Editing Note: Zombie parts are grafted onto the original lifeless post for an authentic zombie experience.

Last time, we talked about the basics of cash flow and I gave you a quick test to tell how you’re doing. I asked you to take a minute from fighting off the zombie horde outside your fortified building to get your last six months (or as many as you have) bank statements and a piece of paper. If there’s no paper, just write on the walls. It’s not going to matter anyway once you’re a zombie too. Write down the ending balance for each month, in order.

Did you do it? Is the balance getting smaller or larger? Arguably, you won’t care as they eat your brains, but still, nice to know. (Zombie trivia: They don’t exclusively eat brains and will feast on any living flesh available.)

This is a rough – very rough – indicator of the health of your business. That is, unless it’s become a zombie business – a little known side effect of general zombie infection where companies continue to shamble along well past their expiration date.

What we’re doing is an overview and doesn’t substitute for a proper analysis but it will help point you in the right direction. For some people it may be all you need.

If not, let me know and I’ll help you get going with it.  Sorry, but I can’t help you survive a zombie apocalypse. You’ll need more stuff for that like The Zombie Survival Guide: Complete Protection from the Living Dead*,supplies and luck – really huge amounts of luck.

Unusual Expenses

If your cash is stable for most months and then dips suddenly, that usually means you paid unusual or infrequent expenses that month. Maybe you got a fantastic deal on supplies and bought six months worth of paper or your business license and insurance were all due in the same month. Perhaps you stocked up on survival supplies and paid a pretty penny for a sweet top of the line zombie preparedness system.

If the balance goes up one month and down the next, it’s more likely something was paid twice in one month and not in the next which might indicate you’re turning into a zombie yourself. But, try not to think about that too much, if you can still think.

Unusual Sales

Cash balances going up suddenly are often a sign of extra sales like you’d have from a show or large order. The flip side of that is a sudden dip in one month could be a drop in regular sales like you’d see if you took a few days off or some outside event, like a hurricane, a blizzard or an invasion of shuffling moaning zombies, killed your sales.

Escalating Expenses

More seriously, a downward trending balance may be due to expenses rising without corresponding sales increases. This happens when your materials and supplies cost more, overhead costs have crept up or maybe you’re buying too many lattes on the company till.

Dwindling Sales

The most serious cause of a steady fall in cash is declining sales. It’s the hardest source of cash to influence and has the longest lead time to change. If a zombie infestation is turning all your customers into staggering flesh eating creatures that don’t have the mental power to buy anything, it’s pretty hard to reverse that trend.

Now what?

Now that you’ve looked at your cash balance and given some thought to why it is what it is, the next step is to do something about it other than stumble around the place looking for snacks. We’ll talk more about that soon, when I’m feeling better. I think domrhinh is etonh … Errrrrhhhhh aaghhaaa …

What have you found out about your business so far and how do you feel about it? Let me know in a note or the comments, your thoughts are valuable to me. If you liked the zombies – let me know! If you thought the zombies were stupid – let me know!

If you’re looking at your numbers and getting a headache, let me help. I can bring focus and clarity to the jumble of figures and give you real next steps to take. I specialize in reassurance. In a calm non-zombie like way.

*Amazon affiliate link
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Do You Feel Rich?

Piggy Bank
Creative Commons License photo credit: alancleaver_2000

It’s pretty exciting stuff being in business. You’ve put your work out there and – Yay! –other people like it. They like it enough to buy it. You feel validated, you feel wonderful, talented, even. But, do you feel rich?

Too often, the work is exciting and you’re busy with sales and making your fantastic one of a kind product. Then, things start to take off – more sales and a real sense of success. Only, the underlying business records and supporting systems weren’t developed. Then, somewhere between placing your supply order and paying the Etsy fees, you think “Where’s my money?”

Scary, huh?

Don’t panic, if you’re there, you can get out. If you’re on your way there, you can change course. It’s not impossible to change but it’s not a fast and easy fix either. If it was, I would’ve made that the headline.

Cash Flow, Cash Flow, Cash Flow

If it wasn’t annoying to you and exhausting to me, I would have written it a hundred times because it’s that important. The first thing to learn to keep track of is your business cash flow. There are a zillion different definitions and some insanely complicated accounting statements but it comes down to money in/money out and is that positive or negative.

Simple, huh?

You can get a good idea of that by checking your bank balance from month to month. If it’s growing – positive cash flow – good! If it’s shrinking – negative cash flow – bad! Once you’ve got an idea of where you are, we’ll start analyzing that to see where to improve.

Right Now

Get your last six months (or as many as you can find) bank statements and a piece of paper. Write down the ending balance for each month, in order. Is it getting bigger or smaller?

What did you find and how do you feel about it? Let me know in a note or the comments, I’m looking forward to hearing from you.

Hear the audio version of this post:

[wpaudio url=”″ text=”Do You Feel Rich?” dl=”0″]

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The Two Essential Skills You Need to Start Your Business

Creative Commons License photo credit: Legozilla

I’ve worked with many people over the years who started out unsure of themselves in their new business. “But, I don’t know anything about accounting,” they would practically wail in my office. My answer was usually something that boiled down to “So what?”

That’s right, knowing about accounting (or how to fix a copy machine or the airspeed of an unladen swallow) has nothing to do with your ultimate success as a business owner.

I believe there are two things that do matter – a lot.


You have to know the thing you’re in business for. If you make one-of-a-kind art jewelry, you must know how to design and craft your wares; if you paint decorative murals, you should know how to layout and paint the scene; if you create heirloom stitchery, you have to know how to thread and use a needle. In other words, you have to know your business, be an expert even. Makes sense, right?


Don’t panic – you don’t have to be uber organized to the point where your shoes are labeled and the pantry has an alphabetized directory. You do need to be organized enough that you can find important papers like last year’s tax return with a reasonable search. Reasonable includes having looked in two file folders and a box under the bed before it turns up. The point is that you keep what you need and can find it even if there’s room for improvement in your system.

Two things – just two, that’s all it takes to be qualified to start your new business. Everything else you can learn or pay someone else to do (sort of like paying a plumber instead of fixing your own pipes). So, I now pronounce you fully qualified to be a business owner.

Realize your strength is in your unique expertise and don’t feel that you have to know all about everything else. You don’t know a SEP from a SIMPLE or what that button with the fireworks icon on the copy machine does?  So what? You know what you need, now get going!

How does this make you feel? Tell me, in the comments or a note, what great stuff you know.