This week’s edition of FinanciElle “Statements” will be my final one for 2018.
For this week’s edition of FinanciElle “Statements”, I had the opportunity to interview Lindsay Johnson, Founder of The Radical Connector.
The Radical Connector combines strategic business development and deep personal growth together to accelerate your business.
Lindsay works with entrepreneurs who are brilliant, creative, and driven but are struggling to grow their businesses effectively. She does this work through an online academy, Radical Biz Retreat, and private coaching, all while providing a community environment.
Paolina: What has been your hardest experience dealing with your business and finance/money and what did you learn?
One of the biggest challenges I faced when starting my business with regards to finances was managing cash flow! It’s tempting to immediately deposit and spend any incoming revenue, especially when the money is needed to pay for essential business and, let’s face it, living expenses. I’ve been caught more than once having spent revenue before services were rendered, leaving me scrambling to put the money back together when the client changed their mind. It was a good, albeit stressful, learning experience! Now, when clients pay in advance, I put their money in an account I don’t touch until I’ve actually delivered the service or product.
Paolina: What advice do you wish you had gotten about finance/money when you were first starting your business?
I wish someone had told me that I will need more money for operating expenses than I expect and that creating a sustainable, livable income will take longer than I think. Setting realistic expectations then planning, and asking, accordingly is crucial. There have been a few times over the years when I’ve needed a cash infusion to help me get to the next level. The first two times I definitely didn’t ask for enough and I had to go back and ask for more. This can wear down an entrepreneur if we’ve not built up our resiliency and we start internalizing money fears. Money is such a hot-button issue. If we start equating our value and worth with money it can go downhill fast which will really shake your confidence as a new entrepreneur. It will always take longer than you think and you’ll always need more money than you think. Patience, persistence, resilience, and adaptability is what’s going to get you through the lack of cash flow!
Paolina: On your website, you have a quiz – “Are you Leaving Money on the Table – Find out if you’re overlooking crucial steps in your business that are blocking the flow of money into your pockets!”
In your experience working with female entrepreneurs – what is the biggest issue they face that leads them to leave money on the table, and what can they do to start earning more?
The number one issue for women entrepreneurs is that we get so caught up in all the things we “can” do to make money, we don’t own what we really want to do and then focus in on only that one thing. When women start saying No more often and begin to focus all their time and energy on a few streamlined, strategic activities they experience rapid growth in their business. A very close second is not charging enough. I can tell a lot about a woman’s confidence in what she’s doing by how much she’s charging. Having clients realize their value and raise their rates happens very quickly once we get to work together.