Running a business can be a challenging and rewarding experience, but it comes with a host of responsibilities. And if you’re anything like most of the business owners we meet at The Business Spa, that’s probably not what you were thinking about when you took the plunge and got started!
One of the most important aspects of running a successful business is understanding your fiscal responsibilities. This includes managing your finances, paying taxes, and complying with relevant laws and regulations. It’s hard to know where to put your attention sometimes and we are passionate about helping people just like you to find easier ways of building the knowledge and confidence you need to grow successful and sustainable businesses.
In this blog post, we’ll explore some key things that small business owners need to learn about their fiscal responsibilities – and we’ll do our very best to help you relax and feel supported in getting to know this part of your business better.
Mindset and Financial Success
Mindset is a critical factor when it comes to financial success. A positive mindset can help you to overcome challenges and stay focused on your goals. On the other hand, negative beliefs and limiting thoughts can hold you back and prevent you from achieving your full potential.
In fact, research shows that businesses with a positive mindset are more likely to succeed. According to a study by Warwick Business School, small businesses with positive attitudes towards risk and innovation were more likely to achieve high levels of growth than those with a negative attitude.
One great example of a business that has thrived by adopting a positive mindset is Cartridgesave, a UK-based online retailer of printer cartridges. The company’s founders, Andrew and Ian, credit their positive mindset with helping them overcome challenges and grow their business. According to Andrew, “We always had an attitude of ‘we can do this’ and we never took no for an answer.”
Common Mindset Blocks
In order to overcome mindset blocks, it’s important to identify them first. Common mindset blocks for business owners include fear of failure, limiting beliefs about money and success, and imposter syndrome.
Jenny Dawson, founder of Rubies in the Rubble, a UK-based food company that creates condiments from surplus produce, struggled with a fear of failure when she first started her business. She was also concerned about how people would perceive her as a young, female entrepreneur. However, she was able to overcome these mindset blocks and build a successful business by focusing on her mission and staying committed to her goals.
Small business owners have a range of fiscal responsibilities, including paying taxes, keeping accurate records, and complying with relevant laws and regulations.
According to a study by the Federation of Small Businesses (FSB), one in three small businesses in the UK say that tax compliance is their biggest administrative burden. However, failing to comply with tax laws can lead to serious consequences, including fines and legal action.
Graeme Donnelly, founder of Rapid Formations, a UK-based company that provides online company formation services, emphasises the importance of understanding your fiscal responsibilities as a small business owner. “Paying attention to financial management and compliance with laws and regulations is essential to the longevity of your business,” he says.
Overcoming Mindset Blocks
Once you’ve identified your mindset blocks, there are several strategies you can use to overcome them. These include setting clear goals, developing a growth mindset, and seeking support from a mentor or coach.
Sarah Willingham, a successful UK entrepreneur and investor, recommends setting clear goals as a way to overcome mindset blocks. “I always break my goals down into smaller, more manageable steps,” she says. “This helps me stay focused and motivated.”
Understanding your fiscal responsibilities is crucial for the success of your business. By adopting a positive mindset, identifying and overcoming mindset blocks, and implementing practical strategies, you can position your business for long-term success and growth.
Clearly mindset is important then but this alone won’t get you to the level of knowledge needed if you are to remain compliant with you know who. Enter your financial expert, and if you haven’t yet got one, this is a friendly suggestion – get one now! We’ve lost count of the number of business owners who have paid fines and become overwhelmed by the level of expertise required to navigate this part of their business. Do yourself and your business a big favour and find a bookkeeper and/or accountant who can speak to you in a language you understand and will work with you so that you learn and grow more confident in this area of business. And then for the love of a healthy balance sheet, do what they tell you!
A study published in the Journal of the International Council for Small Business found that “although a small business owner’s mindset is crucial in accepting business consulting advice, it will not necessarily lead to implementing the consultant’s advice and getting the desired results.”
It will be the work you do on setting ambitious goals, overcoming your blocks, becoming comfortable with the uncomfortable and sometimes, just blind faith in the support around you that will get you to celebrating your success at year end. So it’s a good idea to act on the instructions of your expert, otherwise, you can expect that lack of action to come back and bite you, probably when you can least afford it.
So to wrap all of that up, it’s time to get your head out of the sand and ask for help. Clear some time in your diary to focus on this key part of your business and find out what resources are out there to help you – come along to The Business Spa and get started – we believe that with the resources and support available at The Business Spa, there’s no reason why you can’t achieve your goals, build a successful business, and learn a new trick or two along the way!