7 Signs You Are A Financially Confident Leader

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Brian Dodd on November 18, 2015 in Generosity

Are you a financially confident leader?
Leaders face multitudes of challenges, but financial decisions can be among the most stressful. Nearly every leader has experienced a moment where they lacked financial confidence. For some, the moment occurred when they started a new business and wondered whether or not their passion would translate into profitability and a viable business. For others, their confidence wavered when faced with a major business decision – the proverbial “fork in the road”, ​​a decision that carried a huge price tag. But what happens when a moment turns into a leadership characteristic? When the pressure of a major financial decision causes a leader to break? It can lead to a lack of financial confidence, and it can affect everything you do as a leader.
There are some practical ways to maintain financial confidence, but first let’s compare some characteristics of financially confident leaders and those who are not.
​Financially Confident Leader vs. Lacking Financial Confidence

1. FOCUS: Laser-focused vs. Wavering
2. VISION: Clear vision vs. Double-minded
3. DREAMING: “How can we afford that?” vs. “We can’t afford that!”
4. PLANNING: Thinks several years ahead vs. Attempts to make it through this week
5. LEADING: Strategic vs. Tactical
6. EMOTIONAL: Feels financial pressure vs. Feels financial stress
7. CHARACTER: Their “yes” is “yes” and their “no” is “no” vs. “I’ll say whatever I need to get the sale/money.”

Review the above list and circle the characteristics which best describe you. Better yet, ask your trusted confidants to evaluate you in these seven areas.
If you lack financial confidence, here are some steps you could take to help you.
Prepare a strategic plan along with a cash flow plan to support it. The very nature of a strategic plan forces a leader to think of “working ON the business” versus “working IN the business.” As key projects and initiatives are identified, include their costs in the cash flow plan. Vision costs money. Without money, the vision is only a dream. For instance, if you have identified the need to launch a new manufacturing line, what do you need to be doing financially to prepare for it? Putting an accrual line item in the cash flow plan helps move that dream toward becoming a reality. Is it your dream to purchase another business that possesses technology your current business needs? Intentionally saving money in preparation of making an offer will build financial confidence. Are you a church leader who dreams of expanding your existing facilities? The banker will be excited to hear the dream, but they will be delighted to see the cash flow plan that shows how you will fund it.
Build cash margin. Spend less than you collect. Save. Save. Save! There is nothing like saved money to help a leader gain and maintain financial confidence. It is amazing to see the difference between leaders who continually spend all of their organization’s money and those who prioritize saving. Leaders who spend all of the money can be quite charismatic. They have to be ​ able​ to generate more sales because they are against the wall financially. One meeting with their financial team, however, will reveal the true story. They will tell you that the leader is wavering and double-minded ​; ​ constantly changing their focus and vision toward whatever can generate revenue RIGHT NOW! They are stressed and are almost exclusively focused on tactical moves. And the leader puts the financial team under great pressure and stress by instructing them to “just find a way to make it work!”
On the other hand, a financially confident leader prioritizes saving money and accruing cash for upcoming projects. They work strategically to position their organizations for success and clearly understand that every leadership decision has a corresponding financial decision. Their financial team is glad to see them coming and will work tirelessly to help the leader achieve the next strategic step and challenge.
So, let’s ask the question again: “Are you a financially confident leader?”
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About Joseph Sangl: Joseph Sangl is the founder of I Was Broke. Now I’m Not., a financial organization dedicated to equipping people to accomplish far more than they ever thought possible with their money. He is the author of several books including I Was Broke. Now I’m Not., Oxen: The Key to an Abundant Harvest, and What Everyone Should Know About Money Before They Enter The Real World.