Tracey Bissett works with business owners to help them understand their financials, manage their cash flow, and set pricing in a way that ensures they earn a fair salary. Though Tracey believes it is essential for business owners to know their numbers, she doesn’t think anyone should feel shame because they don’t — and she works with her clients to understand where those feelings come from and develop strategies for addressing them.
“I don’t see how you can actually hit your goals for your business without knowing your numbers.”
Tracey operates her firm, Bissett Financial Fitness Inc., from Toronto. She is also a professor at Centennial College’s School of Business.
ABOUT THE GUEST:
Tracey Bissett is on a mission to redefine the world’s economic future by increasing the financial literacy of entrepreneurs, also known as financial fitness. With over 20 years of experience in the financial services industry, Tracey can help entrepreneurs across all industries, both on and offline.
As the founder, President, and Chief Financial Fitness Trainer at Bissett Financial Fitness Inc.,Tracey helps her clients understand and improve their level of financial fitness with a goal of increased confidence using their financial skills so they can be successful in their financial lives. In addition, Tracey is a professor at Centennial College’s School of Business and regularly leads speaking engagements to increase financial fitness awareness.
Tracey enjoys giving back to the community and volunteers with Therapeutic Paws of Canada, United Way and Junior Achievement of Central Ontario.
Social media, website, book link:
- Website: www.bissettfinancialfitness.com
- Email: firstname.lastname@example.org
- Twitter: @BissettFinFit
- LinkedIn: linkedin.com/in/traceybissett
- Tracey encourages her clients to review their financial statements closely to understand when money comes in and when it goes out. If cash flow is tight, she recommends doing this weekly or even daily so business owners can prepare for potential cash shortfalls by seeking a loan, pushing clients to pay open invoices, or investing some personal cash into the business.
- Some business owners Tracey works with have not applied for support they qualify for. She encourages them to apply even if they don’t need the money immediately, because they may need it in a few months.
- Business owners don’t need to do their own bookkeeping, but they need to understand their financial statements. Tracey walks her clients through their balance sheet and shares her observations and they share how each period felt with regard to cash flow.
- Business owners can work with bookkeepers to make sure their books are set up in a way that they understand. It just requires a lot of detailed communication.
- A steady paycheck starts with pricing your products and services at a level that covers your costs, overhead, and payroll, including yourself. How much would you pay someone else to do the work you’re doing for your business? Aim to pay yourself that amount. This may change your target market.
- Tracey encourages business owners to dive into their money scripts and their personal values around money as they set their pricing and learn to manage their cash flow. Observing and understanding those feelings is the first step toward working through them.
- Business owners need a separate bank account and separate credit cards for their business, because that will make it very clear whether or not the business is making money.
WORDS OF WISDOM:
“Be a student of the industry that you operate in and be a student of your own financial results.”
“Companies that have cash reserves and have lower levels of debt perform better, and they can sustain periods of uncertainty.”
“For a lot of business owners, they’re embarrassed that they don’t know how to do it. I really want to correct that way of thinking, because people who start businesses are experts at whatever they do. There isn’t an expectation that everyone has business and financial training.”
“If your product or service is delivering more value, it should cost more. Then the messaging that goes along with that needs to come. But what often creeps in are these insecurities that people have about themselves: ‘I’m not sure if I’m really giving that much value, I’m not sure if people will see the value.’”
“When you can see the value in what you’re offering and stand behind it confidently, I think that’s where you want to be for your destination. Sometimes it’s putting out prices that maybe you’re not 100% confident saying, but you’re going to get there. As long as you can articulate the value to the client and it fits with what your client wants, stand behind it.”
“Delegating to someone else doesn’t absolve you from the responsibility. I don’t see how you can actually hit your goals for your business without knowing your numbers.”
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If you liked this episode, here’s another I think you’ll enjoy: Episode 23: How Business Owners Can Build Balanced Lives