Business owners must ensure that both their employees and the organization overall are well taken care of. Whether the company is facing hard times or is just in the normal ebb and flow of business, entrepreneurs may worry about whether they'll have enough left over at the end of the month to cover payroll and operating expenses.
While some financial stress is inevitable, it doesn't have to be an all-encompassing, ever-present concern. Below, the members of Forbes Business Council share 15 effective ways entrepreneurs can better cope with financial stress and actually enjoy their business.
Forbes Business Council members offer recommendations on how entrepreneurs can better manage financial stress.
1. Be Present In The Moment
Stress comes in too many forms these days. Incorporating the power of now and being in the moment is the only way to bypass any stress, especially financial stress. Take stock and find gratitude; in this very moment, all is well. These are high-quality problems, so my suggestion is to look around—you are a business leader or an entrepreneur and in this present moment, anything is possible. Breathe. -Beth Jannery, Titan Strategic Communication
2. Empower Your Teams
Entrepreneurs don't have to bear the responsibility of ensuring their businesses are profitable alone. Their teams can be empowered to help. One way this can be done is by showing them how their jobs directly affect the bottom line. This will make them more efficient, effective and creative, which will increase revenue and ensure the employees and the business are well taken care of. -Nneka Unachukwu, EntreMD
3. Collaborate With Outside Advisors
There is much safety in the counsel of the wise. Having a few trusted outside accountability financial advisors may add valuable insights to the potential stresses ahead, along with providing roadmaps to avoid certain ones. The collaboration of wise advisors can be the pillars of excellence in the financial aspects of your business when they are free to speak hard truths and their advice is taken. -Paul L. Gunn, KUOG Corporation
4. Accept And Alleviate Stress
Since emotions are contagious, learn to manage your stress so it does not negatively impact your team. Do not suppress your emotions, but rather welcome them by saying when you are feeling stressed and simply accepting that you are human. Then, alleviate your stress through meditation, exercise, mindful breathing or a good night's sleep. With less stress, your cognitive ability to find solutions increases. -Andreea Vanacker, SPARKX5
5. Know Your Numbers
Reduce financial stress by knowing your numbers. You'll know if you need to cut back or hire. Some key numbers include profit and loss (monthly and annually), balance sheet, annual forecast, monthly cost to operate, accounts payable, accounts receivable, number of clients, number of proposals, win rate on proposals and customer acquisition costs. -Robert Brill, Brill Media
6. Focus On ROI And Be Transparent
Keep the focus on expenditure but also on ROI. Maintain the list of things that require the maximum amount of money, then analyze it and plan accordingly. Take inventory of your finances and talk to your team about it. Be transparent with them so they can help in the tough times. Make them understand and you will surely get emotional support from them. -Sanket Shah, InVideo Innovation Pte Ltd.
7. Master The Balance Sheet
Business leaders must master reading and interpreting the basics of their balance sheet. A simple process of reviewing numbers on a monthly basis helps leaders gain awareness of the health of their company. The best way to handle financial stress includes identifying key metrics based on business model, maturity and growth. Secondly, aligning strategy with key metrics helps leaders gain confidence. -Libby Rothschild, Dietitian Boss
8. Know The Numbers, Prioritize The Team And Manage Stress
I think there are three core solutions to managing financial stress. Firstly, leaders must know their numbers (and not avoid them) so they are not flying blind. Secondly, they must pay themselves and their teams first, thus solidifying they are the asset in the business and shifting their focus into one of positivity. Thirdly, they should bring meditation and soothing techniques to manage their stress. -Lisa Laing, The Uncomplicate
9. Have An Adequate Safety Net
Always ensuring you have an adequate safety net in terms of savings can go a long way in handling financial stress. We all understand the drive to put your money to work, but the ease of mind a safety net can bring often outweighs the value investing that money could bring. By lowering your financial stress levels, you’ll start working more effectively and making long-term plans. -Sabeer Nelliparamban, Tyler Petroleum Inc
10. Remember Your Employees
The rule is simple: No business, no employees. Make sure all your employees add value to the business. When proposing any changes for an employee's compensation program, make sure you can apply the change to all of your employees and that it makes sense to your business. -Sergej Derzap, Amasty
11. Anticipate And Manage Cash Flow
As an investor and an entrepreneur, I always believe that it will take more time and money than whatever you write in the business plan to launch a successful business. Therefore, anticipating and managing your cash flow from the onset is critical to prevent future financial stress. If you are under financial stress, don't beat yourself up. Consult with a seasoned investor or business leader. -David Qu, Joint Commission International
12. Remind Customers Of Payment Schedules
The most common financial challenge is poor management of accounts receivables. We are cognizant of our expenses, but we become complacent when it comes to customers paying on time as we worry about offending them. Just realize that to remind customers about payment schedules is a sign of pride in our work and it builds more equity in the relationship that is crucial to a long-term partnership. -Pankaj Srivastava, Practicalspeak
13. Have A Healthy Relationship With Time
Many entrepreneurs are running a short race to nowhere. If your aim is to reduce financial stress, do two things: solve bigger problems and master patience. The second might sound cliché, but in a world where competition is abundant, you need to understand how to have a healthy relationship with time. You'll find the less you're in a financial rush, the better your money-yielding ideas will be. -Lacey Abbacchi, Lacey Abbacchi
14. Utilize Automation
Utilize automation to provide visibility and control over the company's spending. The pandemic exacerbated accounts payable fraud—digital auditing ensures that errors and risks (and the subsequent stress) go down significantly. Additionally, the saved time enables employees to focus on gaining data and insights rather than manual tasks, turning the AP function into an intelligence hub. -Laurent Charpentier, Yooz
15. See Problems From The Outside
As entrepreneurs, it's easy to fall into the trap of treating everyday financial issues like existential ones. That’s why I use mindfulness exercises and meditation to help me see problems from the outside and regular exercise to regulate my body’s response to stress. In my experience, once you can view the issues at hand alongside your emotions, the path forward becomes easier to see. -David Wagoner, P3 Media
This article was originally published to Forbes.com as a part of their Forbes Business Council on October 27, 2021.
