Youth entrepreneurs face many problems when starting their own business, but a big challenge that floats under the radar is a fear of money. From not having enough money, being terrified of losing it to being scared of spending it – youth entrepreneurs face problems many of us can’t even begin to fathom.
How fear of money may manifest itself in business
- Undercharging for services regularly.
- Inability to collect debt.
- Inability to create and stick to a budget.
- Not checking financial records regularly.
- Overspending or underspending.
- Inability to negotiate fair deals for your business.
- Failure to pay taxes and other creditors.
- Avoiding sales.
- Hiring incompetent staff because you do not want to pay for skilled, experienced personnel.
- Disengaged staff because they are underpaid.
Your business may suffer in these ways
- Experience a crippling cashflow problem.
- Stagnate as money is not re-invested into growing the business.
- Develop a bad reputation and/or bad credit record as money is hoarded instead of paying creditors and staff.
So how do you overcome this? It’s about how you value yourself. Self-worth dictates what you earn. You cannot charge more than you believe you are worth and you cannot build more wealth than you believe you deserve.
8 steps to overcome your fear of money
1. Understand your beliefs and fears about money
Identify the triggers of fear of money and your responses to your fear. What new beliefs about money do you want to adopt? Establish and imprint these new beliefs.
2. Money is there to satisfy your needs
Do you need money to give your children a good education? Connect with that need instead of the money.
3. Build your self-confidence
4. Fair exchange
Learn the principles of value and fair exchange and apply them consistently. Fair exchange is the healthy balance between give and take. It’s about ensuring that all parties to a transaction or other interaction involving give and take feel satisfied that they have received good value for what they have given.
5. Be financially responsible
Create financial policies and procedures for credit management, payment terms and debt collection. Be disciplined and stick to them.
6. Manage your spending
Draw up a budget and make checking cashflow a regular habit.
7. Save money
Create a cash cushion that will keep your company afloat for when there is a sudden economic downturn.
8. Ask for help
Support yourself by engaging your business coach.
About the author:
After running her own branding company for 25 years, Nomvuyo opted to follow her calling and founded BizOil Institute. She is passionate about Personal Development, Business Coaching, Training and Entrepreneurship. She also gives her services as a Mentor to companies in the Enterprise Development space. Companies she works with include Fetola on the SAB Foundation Tholoana Enterprise Programme; GIBS Enterprise Development Academy on the NHBRC, Diageo, JP Morgan and the 1000k Women Entrepreneurs programs; TechnoServe South Africa for The Box Shop program; and the International Coaching Federation of SA ICFSA team for the SAB Kickstart Programme.