What the world of Finance needs from Small Business Owners now

 

We hear about it every day, we think about it every day, we deal with it every day. Unfortunately, we don't really know that much about it, and everyone feels vulnerable at some point when it comes to it. What is "it" that I am talking about? I am talking about Money.

How important is Money for us, as business owners and self-employed? How much do we need Money?

Whenever I think of the notion of "need", I can't help referring to Maslow and his hierarchy of needs.

 

 

Look at the pyramid of needs above. Where in the pyramid would you put "Money" ?  

Because of what it can do, I feel money is intimately tied to our basic needs, such as food, water, and security.

Why do I state it is so "low" in the pyramid, somewhere between the safety and physiological? For many, having money represents security, and lacking money represents a risk of seeing our basic needs not fulfilled.

Invoices coming our way and some expenses represent a form of threat. Losing the PIN of a credit card or having our bank account blocked generate stress and fear as if our physical integrity is jeopardised.

Money is also an area that can feel out of control, or deeply impacted by the actions of others (higher working capital after winning a contract, legal actions, increase in DSO due to unpaid invoices).

This is why I believe that Money somehow became imbedded in our brains as a core survival issue

That we are easily triggered by money is not surprising when we consider that most people have not been given the proper training or education about money or personal finance matters. If you studied Finance, Accounting or Business, you are probably part of the most advanced because you learnt the practical aspects of Money before launching your venture.

Nevertheless, I found it astonishing that so many people (me included by the way) end up doing something with their money in business or in a personal capacity...  even if they know they should do something else. Why is that? Is it down to intelligence? No. Is it down to knowledge, absolutely not either. It has to do with the way our brain is wired way before we even start our first business.

Our money patterns and habits develop, in the first 5 or 10 years of our lives, as we absorb the "money messages" received from the people closest to us (parents, siblings etc...). During our childhood our brain, designed to learn from whatever is going on around us, operates "like a sponge".

When adults argue, resist and fight because of Money, they send negative messages to their children about money. Because of the way the brain works in childhood, these messages and memories are stored and money becomes associated with emotional states like conflict, guilt, anger, betrayal and fear. But if the messages sent are positive, money becomes associated with confidence, trust, compassion and generosity.

If what we learnt without realizing it does not serve us anymore in the adult world, would it not then be high time to change this for the benefit of our family, health and business? What can we do if it is not too late?

If we have a plumbing problem, we call a plumber. When we have a medical condition we do not hesitate to call a doctor. If we have money issues, we deserve the help and advice of a professional too.

The first step is facing the Money taboo and gaining awareness. We enter the world of business with our unique money stories and surprisingly find very few people to talk about it. We end up this awkward situation where we have no real training or deep understanding about one of the things that our society collectively values the most. Still as employers, customers and suppliers, our relationship with Money impacts many people around us!

As we become more aware of our own money patterns and behaviours, we can begin to make new healthier choices. As the saying goes, if you can name it you can tame it!

To gain awareness, I feel we need to define and start looking at Money from a different perspective. If we look at it the way we always did and keep doing the same things, very little (if anything) will ever change.

So, for starters ... what is Money? From my personal view, and letting my economist hat on the side for a minute, Money is a powerful energy force and a medium of exchange. It is a tool and a resource that I receive as a direct result of my actions and contributions. It flows out of my life when I use it, and I strive to do so in a way that make sense to me.

As a small example of actions I take and contributions I make, I regularly host presentations called Money Conversation Cafes to get people talking about Money in a safe environment and becoming more aware of the reasons we all do what we do with Money.

What does money mean to you?

Share your views with us and/or discover what others have to say. No matter if you speak French English or Spanish, check out and register for our free Money Conversation Cafes. I will be glad to get your insights!