#396 Why most people never build financial security (and how to increase your chances

You might not want to hear this, but it’s true.

Most small business owners will never build financial security.

Not because they don’t work their socks off, but because they’re following the rules of success that only work for a few.

Chasing the 10X scale and exit dream

There’s a dominant culture that says if you grow big enough then the security will come, and that exit’s the only way to wealth.

And if you don’t want that?  Wel, you’re just not ambitious, not serious about your business.

So most people throw everything at growth, often without a solid financial foundation, wondering why it only gets harder.

They’re reinvesting everything back into the business to fund the growth; banking on it all being worth it “one day”. 

“If I just hit that £1m or £2m, or £5m. Then finally I’ll be safe”

But that “one day” doesn’t always come/

Oh, and I’m not saying scaling to exit is a bad thing.

But if it’s your only plan then it’s high stress, high risk and doesn’t leave much time for life, for health, and for joy.

And unfortunately, YOU don't get to control the outcome.

• You might not sell when you want, or for what you think it's worth.

• Throw in AI, an uncertain world, and fast-changing business models,  you’re taking a big gamble on everything going to plan.

• Then if it doesn’t pan out, you could find you don’t have enough in your pension. Or enough cash in your business.

Definitely not feeling safe.

Look, there’s plenty of advice out there if scaling fast is your thing.

But I’m here for the businesses that want a calmer, healthier and more predictable way to financial security.

The second reason people never reach financial security?

They never quite got their business to work well enough financially.

Not enough consistent revenue, hand to mouth cashflow, constant worry about paying the bills, and patchy pension contributions.

So how do you increase your odds?

You’re working hard, that’s a given. 

But if you want financial security, here’s what works:

1) Know what you want

Most people don’t know what financial security means to them.

How much do you need for the life you want?

It’s so basic, but if you don’t know where you want to go, what are the chances you’ll get there🤦‍♀️

2) Pay Future You

Use retained profits to put money into your pension or other investments every single month.

Make your business afford it.

That’s how you build wealth whilst you’re running your business.

ime and compound interest are your most powerful levers.

3)Revenue security

I am OBSESSED with this.

Your business can’t invest in your future unless it’s reliably and consistently profitable.

This means you HAVE to be in control of your revenue.

So nail your core offering

Refine your messaging

Do whatever it takes to find your route to market. 

Then work your marketing relentlessly, never letting it drop ( no not even when you get busy!)

4) Build cash buffers

Another big obsession.

#1, always have your VAT and corporation tax set aside (it’s not your money)

#2 Build a cash buffer of at least 3 months overheads

5) Control your personal finances

Spend less than you earn.

Work to a personal budget.

Resist the pressure to spend to “look” successful 

And know the wealth that you’re building is real.

It’s not revolutionary. But it works

And if you do these things, you’ll have a more valuable, more saleable, financially stronger business by default!

Whether you sell it or not, you’ll be building wealth along the way, and not reliant on that pay day.

It’s a total win win.