Money Management

Diagnostics

What stage do you think you’re at in the development of your business model? Diagnose and see the next steps to strengthen your business.

Priorities

Let’s take a closer look at your business in relation to priorities.

    • Start tracking money coming in and going out of the business. Organize receipts, invoices, and any sales records. 

    • Separate your business and personal finances–open a bank account just for the business

    • List all of the costs associated with your pfoudct or service (materials, equipment, your time, etc) 

    • Test your pricing with customers 

    • Make a few sales

    • Think about a way you can track where your money comes from. Which products, services, customers, or sales channels generate the most sales?

    • Ensure you’re tracking business and income consistently – daily, weekly, every two weeks, etc. 

    • Connect your business bank account to all of your payment platform to ensure your business income isn’t getting mixed in with your personal accounts

    • Set aside time each month to review your sales (income), expenses, profit (income minus expenses), and your cash on hand to help you make decisions. 

    • Review whether your pricing truly covers your costs and leaves you enough money to pay yourself and your business goals (i.e. purchase a key piece of equipment in 6 months)

    • Try estimating what sales and expenses might look like next month or next quarter. 

    • Set aside a position of profit (income minus expenses) when you can to build cash reserves.

    • Create a budget for your business –annually or quarterly– that estimates revenue, expenses, and any big purchase you need.

    • Analyze your sales data to see when the slow and busy times are. 

    • Build your business assets by looking for opportunities to create a rainy day cash fund, purchase equipment, build inventory, or invest in business systems. 

    • Consider working with a bookkeeper, accountant, or tax professional 

    • Set financial goals for your business and your salary 

    • Digitize your income and expenses with basic software

    • Start building and maintaining cash reserves. 

    • Identify where to improve margins or efficiency

    • Draft a plan for growth (if you envision growth)

    • Establish strong financial controls, such as approval procedures, inventory control, and regular financial reviews

    • Maintain consistent profitability and financial performance

    • Develop multi-year financial projections

    • Keep financial statements current and accurate

    • Prepare for loans lines of credit, or investment opportunities

Questions to ask yourself

  • Do I know how much money my business earned and spent last month? 

    Can I easily find receipts, invoices, or financial records when I need them? 

    Are my business and personal accounts, expenses, and income separate? 

    Do I know which products or services make me the most money? 

    Do I know how much it costs to make each product or delivery each service? 

    Am I pricing my products or services high enough to cover the costs? 

    Do I know how much cash my business has available today? 

    Do I have a financial goal for next year? 

    Do I know what investments would help my business grow?

    If someone asked me how much money I need, could I provide a clear answer? 

    Could my business continue operating if sales slowed for a few months? 

    Do I have advisors or professionals I trust who help me understand my finances?

    Do I regularly review my business’s financial performance? 

  • Assuming you need software or a formal bookkeeping system before you can start tracking finances. Instead, start with a simple system and build from there. They key is building a habit. 


    Mixing business and personal money. If you use the same account for personal and business expenses, it will be difficult to assess the health of your business. Think of your business as an entity separate from you. 


    Focusing on sales instead of profit. Making a sale is exciting, but sales don’t necessarily mean a healthy business. Pay attention to your costs (expenses) as well as your sales (income) to assess whether the business is doing well. 


    Forgetting to save receipts, invoices, contracts, or bank statements. Create a simply system for organizing your records. You’ll be happy with yourself come tax season! 


    Setting your prices based on what other people charge or what feels affordable to your customer. If your price does not cover your costs, it does not matter how many sales you make. 


    Avoiding financial information. Some entrepreneurs feel uncomfortable with profitability, but as you get to know your business numbers, the less anxious you might feel about them.

“Marie Shawn Teasyatwho – she tracks income & expenses in a written ledger and works with an accountant to digitize those records. It’s a simple system that works well for her.”

– Change Labs Business Mentor

Helpful Tools

Document Downloads

  • Profit & Loss example

  • Cash Flow statement example

  • Monthly income & expense tracker worksheet with instructions

  • Balance Sheet example 

  • Cash Flow Projections example

Here you will find helpful resources including recorded videos, worksheets, templates or other relevant documents to accompany your business journey

Business Experts

Avalon Accounting

Accounting PAEs LLC

Bluecorn Financial, LLC

Four Corners Three Rivers Accounting

Hozhonigo Consulting

Business Experts

Crowdfunding: 

Kickstarter:

The best tool for launching creative projects and physical consumer goods.

Indiegogo:

Offers flexible funding models and is popular for tech startups.

Small Business Loans:

Kiva 

Rooted Relative Fund 

Navajo Small Business Credit Initiative

New Mexico Climate Investment Center

New Mexico Community Capital 

Grant Funding:

Tribal Funding Registry 

USDA

Local First AZ - has a listserv where they publish grants relevant to AZ-based organizations

Mastering your Business Finances

Video Library

Loan Readiness

Getting Ready for the Loans