“This week’s Ask Manny question comes from Wanda.”

Question:

I’ve always wanted to start my own business but I’m afraid to take the plunge. Any advice? 

Answer:

Starting a business can be very scary for sure. But it can also be exciting. In fact, fear and excitement are two sides of the same coin. Balancing the two are crucial in starting… and running… a business.

But what exactly are we afraid of? I will submit that we are afraid of the unknown. We like to see the road ahead and know what’s going to happen so we can prepare mentally, physically, emotionally and spiritually. Not knowing what’s going to happen leaves us anxious and constantly on-guard, eagerly anticipating the good that will come and dreading the bad that may challenge us.

So how do we reconcile this and push through? By mitigating the unknown. Sure you will never know with 100% certainly what will happen, but there are things you can do to help predict what may happen with higher probability. Armed with some potential scenarios, you can start to prepare how you will emotionally and mentally react and actions you will take.

In business, we do this by preparing a financial forecast. A forecast is essentially a business plan that outlines the most probable scenarios that will occur as the business moves forward through time. It also forces you to think through the questions you will be facing now and down the road.

For example: What prices should I charge my customers to ensure that I make enough money to pay myself? When should I hire someone and how much should I pay them? How much should I put into a marketing budget and what outcomes should I be looking for? Should I get a loan or raise capital and how much cash will I need before the business is self-sustaining?

Thinking about these questions and formulating answering in the present moment will go a long way towards setting you up for success. Your chances of being caught off-guard by a situation is reduced. And the fear of the unknown obstacles on the road ahead are diminished. This will hopefully give you the courage to push forward with your business ideas.

Creating a financial forecast doesn’t need to be difficult. I have some great resources on my website that explains the process step-by-step, along with templates. Just go to cfoservicesgroup.thinkific.com.

And if you don’t want to go at it alone, reach out and let’s chat about how you can get some professional assistance.

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