Hi again fellow business owners,
Do you find yourself stressed about business cash flow problems??
Well, the first step in eliminating your cash flow problems is to identify how much income you really need.
This first step is crucial and you’d be surprised how few business owners actually take the time to do it.
Don’t be one of them – short cuts in the beginning lead to problems in the long term!
Step one – calculate your break-even point. This is the point where your businesses income is enough to cover all of your expenses. Be thorough, dig out all the hidden expenses.
Step two – work out how much money you need for the lifestyle that you want. Dream big!
These two steps are the basis for your business forecast, the financial goals for your business. They will highlight exactly what you need to differently over the next 12 months (minimum!)….
Things like:
- How many extra sales do you need to make?
- Who is going to make them?
- What extra marketing is required?
- How much extra stock will you need to carry? And;
- What expenses do you need to reduce?
- Do you need more staff? Do you need less staff?
- Will your current premises cope?
- Do you need more equipment?
Put simply, what needs to be done to get to where you dream of being and who is going to do it?
Don’t forget to make your forecast accurate and realistic though! Be sure to consider things such as;
- Your previous trading figures
- Economic conditions
- Seasonal fluctuations
- Industry competition
- And importantly your capacity to grow!
Now you have clear forecasts and goals in place you will know exactly what to do if you veer of course.
Sounds complicated? Or you just want to make sure you’re on the right track? Professional advice is an investment, not an expense.
I’d love to help you achieve your business dreams, so please don’t hesitate to contact me.
Mick
07 5646 4050
mick@ignitionaccountants.com
P.S. I cover this & 7 other key tips in my free Small Business Guide “How to Eliminate Your Small Business Cash Flow Gaps for Good”. You can download it here: https://www.ignitionaccountants.com.au/
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