Do you tell yourself that you aren’t good at your business or that you weren’t meant to become successful? Poor money mindset has been the cause of more business failures than any other single issue and it’s no wonder. We weren’t born knowing how important money was to the world.

We grew up believing money either grew on trees or didn’t, but either it was probably not the reality.  Then we end up as adults trying to figure it out along the way, through much trial and error. Those same money mindset issues and bad habits that wreak havoc in our personal finances can plague our businesses as well if we’re not careful. The below video was done live on Facebook in my private community where I not only offer business, marketing, and social media tips and resources, but also support and collaboration with other women building a business from home. Feel free to join here:  Moms Mastering Business Community  

3 Money Mindset Mistakes that Keep Your Business Broke

Say No to Shiny Object Syndrome

Some things are just hard to resist—especially when your friends and colleagues are all jumping on board! New tools, training, programs and even business models can all have a strong pull, and if you aren’t careful, these shiny objects can quickly distract you from your current goals.

If you find yourself catching shiny object syndrome frequently, try this two-step plan instead:

• For “too good to refuse” offers, make a plan for achieving a positive return on your investment before you purchase. If you can’t find a (realistic) way to make the purchase pay for itself, don’t buy it. If you don’t see yourself actually using it in your business this month skip it.
• For exciting new business ideas, create a “someday” list. Jot down your idea and a basic outline, then get back to the task you were already working on. Now that great idea won’t be lost, but you also won’t have a stack of of half-finished business plans either. I personally have a stack of folders in Evernote just for Ideas. I have a Blog ideas folder, program ideas folder, and even a list of great training or tools folder. Evernote is a great tool to use to keep all your notes and ideas.You can use it for both business and personal use too.  There is a free and paid version and you can get it here: Evernote.

Cut Your Losses

If you’ve ever said to yourself, “I’m not using this subscription, but I can’t give it up! I’m still paying the launch price and now it’s much more expensive!” Then you’ve fallen for the sunk costs fallacy and need to cut your losses.

This is a common mistake and we all fall victim to it from time to time. Simply put, the sunk costs fallacy is what makes us justify investing more money or time in something—even though we’re not seeing results—because we’ve already spent so much. It’s what encourages us to repair the car one more time (after all, you just put new tires on it), eat a meal we don’t enjoy (simply because you’ve paid for it), and yes, continue to pay for tools and resources you’re not using. I did this a few months ago and got rid of a number of different things I was just holding onto, because I knew if I  let them go and the price would be higher if I decided to get them again. Yet, I was paying about $100 each month for a handful of different things I wasn’t even using in a month. (PicMonkey was one of them since I use Canva and Wordswag for my graphics).

Take a few minutes and examine your current business expenses. What are you paying for month after month that you’re not using? Either make a plan to put them to work for you, or cancel them. Stop falling for the sunk costs fallacy and cut your losses now.

Too Frugal

You thought this was all going to be about overspending, didn’t you? Here’s the kicker: Spending too little is just as bad for business.

When you’re constantly on the lookout for free and low-cost tools or working 16-hour days because you “can’t afford to outsource,” you’re not doing your business any favors. Sure, it looks like you’re bootstrapping and working really hard to make something from nothing, but what you’re really doing is digging yourself a rut it will be nearly impossible to climb out of. Not only that, but you’re reinforcing a scarcity mindset that will continue to plague you for years if you let it.

Rather than pinching pennies, learn to spend money strategically. Buy what you need, when you need it. Invest in top-quality products and programs rather than settling for the low-ticket, half-baked plans. Just like quality clothes, cars and furniture, quality services and software last longer and work better.  And unlike that car, good quality business tools will pay for themselves.

So now you have 3 mistakes that may holding you back from the success you are dreaming about. Changing your money mindset is a not an overnight process, but the rewards are worth every bit of effort you put into it. Which one of these will you start avoiding today?