Why ignoring your numbers is killing your business

Welcome to another episode of From Creative Passion to

Profit. This week's podcast why ignoring your numbers is

killing your creative business. Now that sounds a bit dramatic

perhaps, but it's still real and it's still very practical and based

on over three decades of experience of working with creatives. It's something

definitely I feel very strongly about. If you've ever thought to yourself, I'm going to

sort this money stuff out later, then this episode is for you. Because

the longer we ignore our numbers, the louder that financial clock

ticks. But let's keep light hearted started. Let's dive in.

Firstly, why ignoring your numbers may actually sound

very appealing. I know you've got the idea of numbers, spreadsheets,

figures, budgets, not exactly inspiring stuff. If you've gone into

business here with those creative ideas that you want to showcase the

world, whether it's acting, dancing, music, sound, scripts,

whatever that may be. But there are five perfectly good reasons

to ignore your numbers if you want to stay broke, stressed out

and running a hobby and not a business. Now reason number

one if you are the sort of person who enjoys having no clarity

whatsoever in your business, no focus, just winging it on a day to

day basis, being reactive with no idea where you stand, then

please carry on ignoring your numbers. Reason number two if the

idea of making snap decisions with no real insight works for you,

ticks those boxes like buying expensive materials without

actually knowing what's in the bank, then please don't change anything at

all. Reason number three if anxiety is the creative fuel

for your business, you like the idea of sleepless nights, chasing

invoices, wondering how you're going to pay your rent, how you're going to pay yourself,

then please continue on being blissfully unaware of your

finances. Reason number four if the idea of

feeling in control sounds a little bit tedious, sounds a little bit

on the boring side, not what you're about, and you'd prefer to be

overwhelmed by tax returns, cash flow, money

chasing up people, then please keep your numbers in the dark,

keep them well away from view. And finally, reason number five. If

you want your creative business to stay as a very time consuming,

expensive hobby, something that doesn't actually generate money for you,

but costs you money and time, then please note, ignoring your

finances is a solid strategy. Now that might sound a bit harsh, a

little bit on the flippant side, but let's be honest, you did not start your

creative career to stay stuck and to generate no

money. If you don't generate profit, you're not going to be here to

Carry on delivering your why you're not going to be here to do the things

that you love doing. Now let's flip it on its head and talk about

why money and numbers matter, even if you've got a

dislike of them. Now, Ignoring all numbers might feel easier to you

in the short term. You might like the idea of impersonating that ostrich with the

head in the sand, but in the long run, take it from me, it's going

to cost you time, money, energy and even

it will creep into your creativity as well. And I don't want that for

you. Now when you do start to understand your numbers, I guarantee

something incredible, something empowering, something amazing

happens. You stop guessing and you start making smart choices

for yourself. Your frame reference, your thought process will go

from I hope this works to more assertive, active

phrases like I know this well. It's like switching on that light in

a dark room. Suddenly you've got an idea where your money's going, what's

working, where it's coming from, and how you can actually achieve that

growth and keep moving forward. Now the next thing to consider is

that control. Where you are the driver of your creative business

bus is creative freedom. I'm not talking about you becoming

a full on finance person overnight, you becoming an accountant.

Nothing wrong with that. Professionalise, hasten to add. I'm talking about giving yourself

creative freedom. When you know what's happening with your money, you

can actually do things like price your work properly and correctly. You

can plan ahead for projects, time off, buy new equipment,

rewarding yourself even better. You can stop living day to day, be

more proactive in your business. You can stop living invoice to invoice,

a hand to mouth existence. You can grow, you can hire, help

and support and say yes to more of the things that you love to

do. And let's not lose sight of the fact that profit is not a dirty

word. Profit means that you cover your

costs, have something on top to reward yourself and put that in the

tank to build yourself up a financial buffer. It means you're sustainable.

It means you carry on doing what you love without burning out and without burning

through your savings. If you do not generate profits, you will eventually

get to a point where you will not be able to continue. How you make

your profit is up to you. We're not saying make profit without ethics,

but profit should not be and is not a dirty word.

Now let's consider what you can do. Now let's get practical. Here

are three simple things you can do right now and you don't actually need a

master degree or qualification for this. Track what's coming in

and what's going out doesn't have to be fancy. A notebook, a

spreadsheet, a digital app through Xero, whatever's going to work

for you and the nature and size of your business. Do check out the reel

and we can share some resources with you. Number two set a time

each week, perhaps 15 minutes, half an hour to look at those numbers. Treat

it as a routine, treat it like brushing your and you'll actually look forward

to it and reframe your mindset. Not to look at it

as a chore, but look at it as something that's going to be revealing. Do

the heavy lifting and it's going to be very insightful for you. It's part

of your business. Take control. And thirdly, give each

pound a purpose. Whether it's paying yourself, putting that money assigned for a

laptop, covering a rent, putting money aside for taxes, plan for it.

Money without a plan disappears. And finally folks, remember this.

You are not alone. You didn't go into the creative world to become

a number cruncher. But if you want your passion to pay the bills and

more, then your numbers do matter. And the good news is you do

not have to do it alone. That's one of the reasons the podcast is here

to help you. That's one of the reasons Numbers Know how and its sister company

I Hate Numbers here is there to help you to break it down, keep it

human and help you feel confident around the money side of your

creativity. So what's the main takeaway from today? Well, ignoring your

numbers may give you some degree of comfort, but it's also going to be holding

you back. And when you face your numbers, even an incy wincy bit,

you will take that power back. You will put yourself back in control.

Some final thoughts folks. If you do want help starting if you want

to be part of a good solid community, a creative

community that cares about being creative but also wants to get in

connection and in touch with their numbers and understand the landscape of business well,

join my friend free artist community. Hey, you can even buy my book I

Hate Numbers. Based on decades of experience of working with creatives

small businesses. It's a book that's easy to read. It's not a

technical book. Dare I say it's humorous. It looks under the bonnet of

running a business and it's a very sore, modest investment to make.

Now if you want more support, subscribe to the podcast, share with

those who you feel will benefit from it as well. If today's episode makes you

think twice about ignoring your numbers, if it's giving you some value,

well, hit that subscribe button and share this with a fellow creative

who will need to hear it. Remember, understanding your money doesn't make you any

less creative. In fact, it makes you unstoppable. Plan it, do

it, and profit.