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Habits and Hustle

Episode 282: Melissa Houston: How to Become Cash Confident as an Entrepreneur

Habits and Hustle

Jen Cohen

Entrepreneurship, Education, Self-improvement, Health & Fitness, Business

4.5818 Ratings

🗓️ 6 October 2023

⏱️ 31 minutes

🧾️ Download transcript

Summary

82% of businesses fail due to cash flow mismanagement, often mistaking profit for cash flow. In this episode of the Habits and Hustle podcast, I interview Melissa Houston, author of Cash Confident, who shares her unique five-step framework for mastering business finances. The framework starts with developing a positive money mindset, understanding the difference between profit and cash flow, creating a business financial plan, and the importance of being proactive with cash and forecasting financial outcomes for at least six to eight weeks in advance to prepare for any financial shortages. We also discuss specific financial hurdles that women often face, including mindset issues around money, the intense competition in the online coaching world, and the importance of understanding and managing cash flow effectively. What we discuss: 01:10 - What does it mean to be cash confident? 02:34 - Number 1 reason businesses fail 03:55 - Tips for being more aware of cash flow 05:36 - 5 step framework for mastering business finances 09:00 - How to shift your money mindset 11:53 - Financial confidence for women 16:12 - How to determine the strengths and weakness of a business? 17:46 - What businesses are more profitable and cash flow positive than other ones? 22:50 - The truth behind online coaching 25:13 - When does a company need to hire a CFO?   Find more from Jen: Website: https://www.jennifercohen.com/ Instagram: @therealjencohen Books: https://www.jennifercohen.com/books Speaking: https://www.jennifercohen.com/speaking-engagements Find more from Melissa: Website: https://melissahoustoncpa.com/ Instagram: www.instagram.com/melissahoustoncpa

Transcript

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0:00.0

Hi guys, it's Tony Robbins. You're listening to Habits and Hustle. Crush it. So we have a special guest

0:10.0

today because not only are you an author, Melissa Houston, but you're also my friend. And Melissa is a

0:17.0

contributor at Forbes and also wrote a fantastic book called Cash Confident, which is, I think,

0:24.4

what I love about it, it is very simple to understand and grasp and it basically gives

0:30.9

people a blueprint for how to manage your money within your business, basically, be more confident about cash, right?

0:39.3

Yes, thank you for saying that because that's exactly what I aimed for.

0:43.3

There's so many accountants who write books, but they can only be understood by other accountants.

0:49.3

Right.

0:50.3

And I really, yeah, and it's like, that's not very helpful for the average entrepreneur because you're not an accountant.

0:56.0

Right.

0:57.0

Nor do you want to be, right?

0:58.0

Well, yeah.

0:59.0

And also it's like this is what I love about it also is that like it can save people who are entrepreneurs so much money by learning very basic things that they could be doing and looking out for.

1:10.0

Yes.

1:11.6

And so why did you name it cash confident?

1:14.6

What is it to be cash confident?

1:16.6

Yeah, that's such a good question because my whole premise of She Mean Profit is I really want

1:23.6

to empower entrepreneurs and business owners with business financial literacy. And once you

1:28.6

have those skills, you feel like so confident and so unstoppable. So, you know, to the point of cash

1:35.8

confident, it's getting you confident with the numbers in your business because like you said,

1:40.6

there's so much money, there's so much profit to be made when you look at your numbers and you tighten things up in your business, right? People think, I don't want to look at my numbers. They scare me, whatever. But there's so much value in knowing what's going on in your business and knowing your numbers. It's so true. In fact, actually, what's so interesting, so many big brands, people look from the outside.

2:01.3

Perception is not always reality, right?

...

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