Cash is the thing that will keep your business afloat. Cash is what is needed to start it up. Cash is what is needed to keep it going. Some of you might be wondering how to better manage your financials> Below I have some advice, advice which might help many of you out.
This might sound simple to some of you. A budget, however, will save your life. This includes keeping a cash flow. A cash flow will illustrate what cash you have on hand. It will tell you what cash you can spend on the business. It’s also going to show you how much cash you need to allocate for bills and such. It’s important to keep this up-to-date. Look at your cash flow at least once a day or every other day.
It depends on how large your business is. If it’s just a small shop, then checking it every few days is good. If it’s a larger business, you will need to take note of things almost every single day. I’m sorry, but you will. The larger the inventory, the more you will need to take notice.
SPENDING HABITS: WHAT ARE YOURS
You need to take note of how much your expenses will be. You also need to take note of your competition. Will you need to increase your prices to leverage your overhead somehow? Will you need to cut out some of your supplies to make your business more successful. These are all things you need to consider.
How much are you putting out in overhead? Is it enough to sustain everything successfully? Is your overhead taking away from making other things a success? You need to have mind for these things. If you don’t, then hire someone to do it for you.
Hiring someone will also fall under this category. Will it be more cost-efficient to hire someone? Will it make more sense for you to do it yourself. If it makes more sense for you to handle it yourself, you are going to have to teach yourself the basics.
YOUR CREDIT HISTORY
How are you handling your credit? How are you handling your accounts receivable? There might be customers that pay late all the time. Are you paying attention to this? Is this something you are letting go by the wayside?
You might want to consider an incentive. Is there a special discount you can offer to your customers, to encourage them to pay sooner? This might help out your business. Every business has at least one customer which they have to babysit. It’s just the nature of the beast.
I hope this helps some of you out. You can find out more information online at some pretty cool sites. Every business and owner needs their own set of goals. How are you going to step up to the plate?