Sometimes, you have to learn lessons in business the hard way. Experiencing the ups and downs of entrepreneurship shapes you and builds you into a better leader for your company. On the other side of those lessons are opportunities. Opportunity to apply what you learned to your business to better it for the future. This is exactly what Mollie did at Between the Pine in early 2021. She took an experience that could have discouraged her, and turned it into a positive. That positively changed the game for the company’s finances. Let me share it with you!!!

You have to Start Somewhere

It was December 2020. Mollie had just had a huge year in business and had some major investments that she wanted to make. Most of which were needed! A new lens for her camera, a new backpack, and (the big one) a van for traveling. In 2020, Mollie spent a lot (and I mean, a lot!) on Airbnb’s during her busy season for photography. After doing the math, the purchase price of a sprinter van to travel and camp in, would pay for itself in 2 summers of photographing elopements. The idea seemed sound, Mollie had enough cash to pay for the van in full, and she went for it! 

Lessons Learned

Fast forward to February 1st, 2021. Mollie went to cut a check to pay her monthly salary from Between The Pine. She was shocked to discover that the pile of cash she had been operating out of didn’t have enough to cover the check! Mollie was upset, embarrassed, and frustrated that this could happen. At this point in time, I had a job at Nestle and we were living below our means, so the lack of Mollie’s salary for a month was (thankfully) not the end of the world. BUT, it could have been. What if Mollie’s salary was our sole source of income? What if we needed that check to pay rent that month? This is when Mollie looked at me (we shared an office in our apartment), and asked me to help. For the longest time, I had been running our personal finances, but Mollie had been in charge of her businesses finances (rightly so, it was and still is her business). But it was time to install a system. It was time to start controlling the business’ finances instead of letting them control us. 

Can you relate?

Maybe this sounds like you! Are finances controlling you and your business, or are you controlling them? If it’s the former, read on to find out what took Between The Pine from out of control, to freedom from the bank. 

When Mollie and I started collaborating on the financial plan for Between The Pine, Mollie had been missing a few pieces of the puzzle that, once we implemented them, changed how she not only ran her business, but changed her level of stress and her view of success. 

Budget / Process

The first piece that Mollie was missing was a solid budget. She was having a hard time seeing where the money was going, because she didn’t write down her intentions every month, or look at the record of where it went. Once we implemented a solid budget and forward looking expense forecast, she knew exactly how much she had to spend this month, and every other month for the rest of the year. This helped her prepare and have cash ready for all the incredible initiatives that she had planned for her business. We use the same budget that we are offering you for FREE here at Let’s Venture. Head over to (MONEY MANAGEMENT FREEBIE LINK) to grab it!

Cash Flow

The second piece of the puzzle that Mollie was missing, that is the number one thing that changed the game for Between The Pine finances was cash flow. Just because you make $10K of revenue in a month doesn’t mean that you have to spend $10K that next month! A proper revenue forecast, with a proper expense forecast (that is ideally month over month, less than your revenue forecast) means that you will have a positive cash flow. For example, Mollie and I set a forecast each year for revenue and expenses. As we sit here in Mid-March 2023, the business does not have to make another dime until Mid-June. This is due to cash flow! We have time to pivot, make informed decisions, and ensure that we do things with excellence. We are able to be free from stress about the next sale having to be tomorrow or else… I say this not to brag, but to tell you that it is possible to make this your reality! Listen to the podcast above, and check out our other podcasts and resources to learn how.