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In the first part of our conversation with Marsha Lindquist she highlighted the less romantic realities of entrepreneurship. She also revealed why paying close attention to your finances is paramount to your success. Today the author and financial strategist, takes an even more granular approach to examining an organization’s financial health.
[0:45] A Hands-On Process
Acknowledging the trepidation on the part of many entrepreneurs to dive into the finer points of finance, Lindquist reemphasizes the power this knowledge can hold. Moving beyond basic P&L sheets to full financial literacy may require a sharpening of skills, and even additional education. Nevertheless, the consultant underlines the value this investment can yield, as a few months of training can make your business more profitable overall. The importance of an organization’s decision makers developing a reliable sense for finance cannot be overstated.
[3:01] The Complexion of Commerce
More important than the raw numbers on a company’s balance sheet are the circumstances under which the money is moving through the business. For example, entrepreneurs forgoing a salary early in a company’s growth cycle can be harmful in the long run, as it does not allow a full picture of expected expenses. Does your business have the resources to expand its capabilities as well as simply maintaining its standing? If not, the complexion of your commerce may not be what it appears, regardless of what the ledger may tell you.
[5:10] Is the Price Right?
One of the trickiest aspects of entrepreneurship–indeed, one that has been the demise of many promising organizations–is defining the cost of the product or service. Too high, and the prospective base of consumers will bypass you for a cheaper option. Too low, and your business will never recoup your investment. A thorough understanding of your company’s finances removes a lot of the guesswork from the equation. By understanding how much a project costs you to produce, you can have a more concrete idea of its final price.
[7:50] Virtual Realities
Pricing can prove even more problematic for service providers, particularly for those in the virtual space. A flawed perception persists that virtual services are somehow worth less than their onsite counterparts. However, any savings on travel and accommodations must typically be applied to setting up Internet-based infrastructure such as content management systems and subscription services. In the end, time and expertise are the most profitable products of a service provider, and these should always garner fair compensation.
[9:53] Paying a Proper Premium
While there are a wealth of free services designed for online commerce, there is almost no avoiding the wisdom of the old adage: “You get what you pay for.” Free versions of popular team coordination and communication tools usually lack the full suite of features you will rely on most. Free service hallmarks like limited functionality and watermarks can also make your brand feel less professional…and in turn, less competent. In the majority of cases, the finished product will clearly reflect the investment you make in your product or service.
About Marsha Lindquist:
Website: https://graniteleadershipstrategies.com/marsha-lindquist/
LinkedIn: https://www.linkedin.com/in/marshalindquist1
Twitter: https://twitter.com/marshagovcon?lang=en
Connect with MindTeam Solutions:
Website: https://ca.linkedin.com/company/mindteamsolutions
Email: Info@MindTeamSolutions.com
LinkedIn: https://ca.linkedin.com/company/mindteamsolutions