Business Money Management Software Doesn't Work - Or Does It?

This Business Money Management Software Doesn’t Work – Or Does It?

Does this Money Management Solutions Software work or not?

As a creator and manufacturer of a product, you always want your customers to be able to get the greatest satisfaction out of using your products!

When you read the following post, see if you experience the same revelation that this business owner had about his business when he talked with Sandra Simmons, President of Money Management Solutions, and creator of the Money Management Solutions software system. (While you are reading it, think about your own business or family finances, and see if you get the same reaction.)

Here is the transcript of a telephone conversation between a business owner and Sandra Simmons.

Sandra: Hi [name withheld] how can I help you?

Business Owner: Your business money management software doesn’t work for my business.

Sandra: What do you mean exactly when you say it doesn’t work for your business?

Business Owner: Well, for one thing, what good is going to all the trouble to fill out the budget? I already know how much money I’m spending.

Sandra: The budget module isn’t meant to tell you how much you’re spending. It’s designed to tell you how much you should be making.

Business Owner: What?

Sandra: And just making break even isn’t good enough, you have to budget to do better than break even.

Business Owner: Huh?

Sandra: Have you built your budget in the Money Management Solutions software?

Business Owner: Yeah.

Sandra: Okay good. How much did you budget for your Emergency Fund?

Business Owner: My what?

Sandra: Your Emergency Fund.

Business Owner: What’s that for?

Sandra: To handle financial emergencies – you know – those things that you knew would happen at some point, but you didn’t plan to have the cash to pay for them when they did.

Business Owner: Like what?

Sandra: Like having to buy 4 new tires for your delivery van, or the 15 year old air conditioning compressor breaking down on the hottest day during the summer.

Business Owner: Oh, I guess I should put that in there huh?

Sandra: Sure. Now how much did you put in the budget for expansion?

Business Owner: Expansion? You mean expansion of my business?

Sandra: Yes, exactly.

Business Owner: Oh, I can’t afford to expand right now.

Sandra: Why not?

Business Owner: It’s just not in my budget.

Sandra: My point exactly.

Business Owner: Huh?

Sandra: Okay, here’s the thing. Do you want your business to survive and even grow?

Business Owner: Of course, that’s why I bought your money management software.

Sandra: Great. So what does a business have to do just to survive – just to be at the breakeven point?

Business Owner: Make enough income to pay the bills.

Sandra: Right, and how do you know how much is enough to pay the bills and break even?

Business Owner: By looking at the budget to see how much I’m spending on paying the bills and spending on credit payments.

Sandra: Okay, but can you see how you could take a slightly different point of view, and see the budget as how much income your company needs to make each week to break even?

Business Owner: Oh, yeah.

Sandra: Okay good. Now, do you want your business to do better than just being able to pay the bills and the credit loans?

Business Owner: Heck yeah, I can hardly pay myself enough to pay my own personal bills.

Sandra: Okay, so let’s go back to the example of the emergency fund; if the budget tells you how much income you need to “make” and you add the emergency fund for the set of 4 tires for the delivery van to the budget, what does the budget tell you?

Business Owner: How much money I need to make to pay the bills and buy the tires.

Sandra: Exactly. And would that then be more money than you are spending?

Business Owner: Yeah.

Sandra: Good, so the reason you add things to the budget is because you need to know how much income your company needs to make to do better than just paying the bills that typically land on your desk. So we actually call the budget number by another name; we call it the Income Planning Target.

Business Owner: So I would raise the budget, or the Income Planning Target, by the amount to pay for the tires later on when I need them.

Sandra: Exactly. Now what about when you are going to need more than 4 new tires for the van? You know – when the van finally wears out and you need a new van?

Business Owner: You mean I add that to the budget too?

Sandra: Well, is your van going to last forever?

Business Owner: No, but I won’t need to replace it for another 4 years.

Sandra: Okay, and how are you planning on paying for it in 4 years.

Business Owner: Well, I usually trade in the old one where I’m going to finance the new one.

Sandra: Why wouldn’t you pay cash for the new van?

Business Owner: It’s just not in my budget.

Sandra: Again, my point exactly.

Business Owner: Okay, okay, I get it now. I add the van to the budget which is really the Income Planning Target so I know how much money I have to make to have cash to pay for the van in 4 years, plus the tires next year, plus all the bills, right?

Sandra: Exactly.

Business Owner: That’s brilliant.

Sandra: Well, the software system makes you brilliant at managing your cash flow and planning how to achieve all you financial goals.

Business Owner: Wow, that’s cool. What else goes in the budget, I mean Income Planning Target.

Sandra: Well, what else are you going to need to expand your business in the next 5 years?

Business Owner: Well I can tell already I’m going to need to hire another salesman to make the Income Planning Target. So that has to go in the budget too, right?

Sandra: You got it. What else?

Business Owner: Well, I might need a second van.

Sandra: Okay good. What else?

Business Owner: I can’t think of anything else right now.

Sandra: Oh? I thought you said you needed a bigger paycheck.

Business Owner: I do!

Sandra: Well?

Business Owner: So I up my salary in the budget?

Sandra: That’s right.

Business Owner: Wow.

Sandra: What else?

Business Owner: [silence…thinking]

Sandra: How about the increase in costs of doing business?

Business Owner: Huh?

Sandra: You know, the cost increases from your suppliers every year, and having to give your employees raises, or pay them bonuses…that sort of thing.

Business Owner: Wow, I might need 2 more sales people to make that amount.

Sandra: Okay, you have to plan it out and run the numbers on it.

Business Owner: Okay.

Sandra: There’s one more thing you have to add.

Business Owner: [groaning] There’s more?

Sandra: Yep, and it is more important than any of the things we’ve talked about already.

Business Owner: What is it?

Sandra: It’s your long-term wealth building plan.

Business Owner: My what?

Sandra: Wealth building plan. You’re planning on retiring someday, right?

Business Owner: Yeah but I’m going to be working for a long time.

Sandra: Well, who is going to cover your household bills when you retire? You sure can’t expect Social Security to even be around when you retire, let alone cover all your bills. So if you don’t pay you, into a retirement wealth building plan, who will?

Business Owner: Nobody.

Sandra: Exactly. So how about raising the Income Planning Target enough to cover that too?

Business Owner: Wow, that would bring the income target up to….well, that isn’t going to happen any time soon.

Sandra: Did I just hear you decide you are going to never be able to afford to retire?

Business Owner: Huh?

Sandra: Well…you said “that isn’t going to happen any time soon,” and that sounded like you made that decision, and if that’s what you decide, then that’s exactly what will happen. So can you change your viewpoint and say it will happen? And then get busy using the rest of the money management software features to start planning how to make that happen starting today?

Business Owner: The software does that?

Sandra: Well, it has for countless other business owners around the world…including me.

Business Owner: Wow, I didn’t realize that.

Sandra: That’s okay, lots of business owners don’t realize the power of the money management software system until they actually learn to use it…it does take some figuring out, sort of like driving a car for the first time. Then once you’ve driven it a few times you can do the actions of driving without thinking about it and you actually start enjoying the trip. The fastest way to learn to use it is to take the Money Management Planning Course

Business Owner: Sounds like I better get busy figuring out what the Income Planning Target really needs to be, and include the training in my budget

Sandra: Good. Keep me posted on how it’s going and when you’re signed up to do the training course, okay?

Business Owner: You mean e-mail you?

Sandra: Sure, you can e-mail me or call if you need technical support on the software.

Business Owner: Okay I will. Hey, thanks a lot. I can see I really need to dive in and get this money management figured out.

Sandra: And the good thing is, when you do, you’ll be in control of your financial future, instead of you being controlled by how much money you have in the bank.

Business Owner: [laughing] Okay, I’m going to get to work on it right now and sign up for the course.

Sandra: That’s great.

Business Owner: Thanks again.

Sandra: You’re very welcome.

In the resource at the bottom of this article, you can find out what else Sandra has to say about business and person finance issues of all types, and what to do about them - or call us at 1 + 727-448-1011.