How to Delegate Your Business's Finances

140579_8023
  1. You + Your business's bank account.
  2. "Don't let anyone manage your finances!" they tell you.
  3. So, you continue doing your own payroll/payables/yaddas.

Result:

  • You waste a chunk of time managing company finances.
  • More important (i.e., more profitable) things go unsettled.
  • Your business continues sucking like a suck-suck.

Revenues = flat.

Customer satisfaction = flat.

Product innovation = nil.

Your business = BOO.

How do you let others manage your finances?

First, unless you're open to bankrupting your bizo, never give away your master keys.

Instead, do this simple financial trick that most small business owners haven't done:

  1. Open a secondary bank account -- under your company's name.
  2. Occasionally throw in manageable-enough-but-certainly-won't-destroy-you-if-some-nut-decides-to-spend-everything-on-Cheetos funds.
  3. Give someone else the keys to manage that account.

OMGADT#@FDASDF!

What happens?

  1. You start saving time/headaches/worries.
  2. You free yourself to work on more profitable opps.
  3. You slowly and surely build an operation that doesn't require your presence -- the hallmark of excellent business-buildmaker-YOU.

Sweeter Financial Tricks?

Separate accounts.

  1. An account for payroll
  2. An account for human resources
  3. An account for marketing
  4. An account for vendor payables
  5. An account for Product XYZ
  6. An account for Service ABC
  7. ..and so #$@! on...

Result:

  • More delegation
  • Exponentially lower risk
  • Free up friggin time

The Ultimate Business Effects of Diversified Accounts?

  • Your company starts organizing its finances better, helping it make better decisions (e.g., distinguishing between a money-drainer and a cash-cow).
  • Your company starts budgeting smarter -- realizing it can't go over what you've placed into the accounts (e.g., X funds into the marketing account).
  • Time/headaches/confusion/complexities saved for all.

More importantly, it lets you focus on what matters: building and growing your business for the world.

BAM.

Diversify Finances.

Posted December 23, 2008 in Finance, Management

2 Comments

on How to Delegate Your Business's Finances

NewWorldOrder
2008-12-23 22:12:47 UTC

Separation of Concerns -- makes absolute sense.

andhapp
2008-12-26 13:02:46 UTC

Have a look at the Startup Success podcast they have some good advice on startups.

Leave your ridiklislydoptastic comment



Favorites

Why Set Constraints

Think of a 6th grader. Her full-time job involves 8 hours of school a day. Then, she practice...More »

How to Price What You Sell

Scenario: Says Johnny, "Dude, our competitor sells his Wilson basketballs for $39. We'll sell our...More »

What You Underestimate

You procrastinate on some task. You wait for an inspirational spark. Time passes, and you've ...More »

How to Complete Customer Projects

Do one client project. Finish. Do second client project. Finish. Do third client project. F...More »

Why Make Your Business Redundant

Decades ago, companies ran their stuff on one server. Then: KABAM. The server went out. "Wha...More »

How to Sell Your Products

Scenario: "Dude, to sell to people, we gotta excite them to dream. Dream! We'll sell millions. An...More »

How to Rock Your Work Day

Imagine preparing for some local marathon, where your sexy ass will be running in those tidy-whit...More »

Why You Need a Chaotic Business

[...] For a taste, Why You Need a Chaotic Business: [...]More »

How to Be An Expert

Scenario: "Dude, I'm already the expert in my industry. I've learned everything. Now, it's time ...More »

How to Be Happy

Scenario: "Dude, when I grow my revenues to a million dollars, I'll be happy. Yay! Yay!" Ahh-fo-s...More »

WTF is Trizle?

Trizle helps you rock ___ with your business.

Subscribe

Get a complimentary subscription to our freshest articles through email or through your feed reader.

The Trizle Love

"I love your style. Fun and to the point."

BlueSkyBrothers.com, Blue Sky Brothers

"I love receiving your daily tips. They're fun. It's practical advice, and uplifting. Please keep them coming!"

Stella Samuel, Yoga Gals

"Your style of writing definitely amazes me. Sometimes I know where "exactly" the article's going but I keep reading just because it's fun. It's like watching an action movie where you already know "heh the bad guy will die and the good guy will win" but you're still watching the movie till the end anyway because it's exciting. :-)"

Hendy Irawan, Hendy Irawan

"I just found your site and you've got me hooked."

Jill, Tips from Home

"This is why I love the Trizle. Sa-weet. And do-able. Putting note on my desk to see at all times regarding this post."

Janice Cartier, Painting A Day

"I just went through all the articles on this site I kid you *NOT* - it's freaking awesome. Love the style. Love the content! Keep it up!"

Evan

"Trizle, I love you. Don’t tell my husband."

Katherine Gordy Levine , Emotional Fitness Training

"Very well written post -- nice work. And great design too, I really like what you're doing here."

21st Century Citizen, 21st Century Citizen

"Thank you so much for these things. I'm now trying to persuade my business partner to subscribe also :-)"

Mark Harrison, Negotiation, Negotiation, Negotiation

"I love your journal, I love your style. I think that a collection of these entries over the past year or so would make a great book. You know, a big colorful light read with all of the photos and everything. I'd buy it! Keep up the good work!"

Rob Lambert, SpringQ

Don't Miss Out!

Subscribe to Trizle through email or through your feed reader.