How Unconfidence Costs Your Business: Steps to Build Financial Confidence

“Unconfidence” isn’t a word we hear often, but it’s something we all know. Recently, three business leaders shared this with me:

• “My Income Statement says I should need to borrow money, but I don’t.”

• “If I can’t turn this business around, I may have to sell my house.”

• “I paid a lot of money, got nothing for it, and feel betrayed.”

Each of these leaders faced uncertainty, doubt, and unconfidence. It’s a silent cost that intrudes on us every day, but we call it insecurity, fear, anxiety, or Imposter Syndrome. For business owners, especially, unconfidence comes with a price—and, unlike most business expenses, it doesn’t show up directly on the income statement.

Why Confidence Matters: Declining Confidence Raises Costs

We live in a time of declining confidence across institutions, from government to corporate culture. For business owners, confidence plays an essential role in success. The cost of bad decisions made from a place of unconfidence is as accurate as the cost of bad information.

Entrepreneurs are naturally confident—they thrive on bringing ideas to life and beating the odds. But with so many hats to wear—marketing, HR, IT, and especially finance—each new area increases the potential for costly missteps. When decisions are made outside our expertise, the risks and costs rise. Over time, the impacts erode your financial performance.

Know Your Numbers, Grow Your Confidence

At Data2Profit, we focus on building “Confident Financial Outcomes.” It’s the name of our monthly newsletter and the essence of what we provide. Here’s what each word represents:

• Confident – Being certain of your financial abilities, and having trust in your people, plans, and future, using solid information to support decisions.

• Financial – It’s all about the money; whether business or personal, current or future.

• Outcomes – Achieving the goals you set; the results or consequences of the decisions you make.

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Our forward-looking approach is different from most accountants and CPAs. We go beyond the reported “what” of your financials to help you understand the “so what?” and explore “what’s next?” for your business.

Confidence in finance starts with expertise and education. We help you engage with your numbers, understand the story they tell, and use them to reach your goals. Numbers matter because they reflect your business decisions and behaviors. For example:

• Sales down by 19%? Have you prioritized a strategy review? Are your reps making enough calls? Are your prices competitive?

• Gross margins below 5%? Who analyzes if the cause is with sales or costs? Are you getting quotes from other suppliers?

• Cash crunch on payroll day? Are customers on track with payments? Have you created a cash flow forecast?

Your numbers tell you where the problems are and where opportunities lie. By understanding them, you’ll be able to make decisions from a place of confidence, not fear.

What Causes Your Unconfidence?

Unconfidence can start anywhere. Strategy vs. tactics, any function, people or process. Let’s revisit the stories from the start:

1. “My Income Statement says I should need to borrow money, but I don’t.” A company president knows her business but lacks confidence in her income statement’s accuracy—even with a part-time CPA involved. The system is doing calculations, but no one understands how or why.

2. “I may have to sell my house.” This once-successful business owner trusted an employee who mismanaged operations. Without key performance indicators (KPIs), performance plunged, debts piled up, and former clients moved on.

3. “I paid a lot of money and got nothing for it.” In marketing—an area outside my expertise—I hired an SEO firm without proper vetting, bought services I didn’t understand, and had no next steps in place. I became my own typical client.

Gain Financial Confidence at a Special Low Offer

“Don’t Grow It Alone” is the rallying cry of Milwaukee’s Small Business Owners Community. It applies to your business too. Unconfidence can happen with any of the hats you wear, so consider bringing in functional experts. Start by learning the basics in each area, getting referrals, and interviewing potential partners.

If you’re unconfident about your financial and operational numbers, reach out to us. Mention this blog for a special one-hour consultation at just $200—a small investment to start growing your financial confidence and eliminate the costly impact of unconfidence. We’ll start with a ‘big picture’ conversation about your business, narrow it down to a couple of priorities, and go from there.

Your Bottom Line: Financial Confidence Paves the Path to Sustainable Growth

Unconfidence is a hidden cost, but you don’t have to pay it. A little education can go a long way. Reach out today to start turning your numbers into a roadmap for growth. Let’s build the confidence that drives profitable outcomes—together.