Your small business exists to make you money. But whether you sell goods or services, you need to make a profit. And you can’t do that unless you manage your finances and cashflow carefully. So what are the best ways to do this?
The first few years for any new business are crucial to its long-term success, with many challenges to overcome and lessons to be learned.
Cash flow problems and mismanaged finances are major causes of business failure in the early years. Some businesses fail to plan properly, some set their sights too high or low, some don’t keep track of costs and some may fail to chase payment.
You can maximize your chances of business success by being aware of the pitfalls. Then you can manage your business’ finances carefully and keep a close eye on its cash flow.
Taking sensible, practical steps will help you control spending and grow your business without taking excessive financial risks. Here are some useful tips to consider.
It’s useful to develop a financial plan or framework to keep track of business finances, and when circumstances change, your financial plan should be flexible enough to change as well.
Ambition and enthusiasm are important characteristics of business owners and managers. But so is the ability to make rational financial decisions based on the facts. Successful entrepreneurs have two things in common – they learn from their mistakes, and they make small enough mistakes that they are able to recover from them financially.
Managing your finances and cash flow shouldn’t be an afterthought. It should be a fundamental part of your business strategy. And this is where we come in. For many years we have been working with clients in many different businesses.
We can assist you with business plans and forecasts, debt management and cash flow analysis. In short, we are not happy with the status quo but help our clients create their future.