I believe every entrepreneur should have a basic understanding of accounts, when you first start your business you simply may not have the budget to justify employing an accountant. That does not mean you should leave the finances of your business to chance. I have worked with clients, sole traders, who could not tell me how their business was doing until they had completed their year end tax return. So whilst they may have had a vague plan, there was no forecasting. In order to make informed business decisions you need to become confident in your cash flow - putting easy to follow tools in place will make it easier to see where your business is and how you can perform better.
Throughout the next six weeks we will be going through the following areas, some as part of pour One-to-One skype sessions and some by video tutorial on this platform.
Week 1 : Mirror, Mirror....
Following our initial call and questionnaire we will take a look at your current systems - don't panic I do not judge I have clients who have complex spread sheets and others with a bag of receipts. I should warn this is not an easy week - I will be asking you to analyse your expenses, even if you haven't started trading I can tailor this course just to help you manage personal expenses better.
Week 2: What are your goals?
Ok, we will have briefly discussed this prior to the start of the course but this is the nitty gritty this is where you are committing to what you want to achieve. It could be that you want to stop relying on the credit card come month end, or you want your business to provide you with a full time income, it could be that you want a family holiday, or to achieve the same take home pay on fewer hours. Whatever it is you want to achieve we commit it to paper. Now the bad news, there is no magic wand, there is however hard work and knowing what you want to achieve is better than just waiting until year end to see how you have done.
Week 3: Cash Flow essentials
This week you will access my "Cash Flow Confidence" online course which comes with an easy to use template now we can start to build your business or personal cash flow based on the information we identified in the previous two sessions. Firstly what is your income and outgoings and what do you want it to be. It can be scary when you see the end the result of these numbers, often if you have no system other than checking your bank balance occasionally you may not realise how much you are spending on the morning coffee and pastry every day.
Week 4: Trimming the fat
Thousands of profitable businesses go into liquidation every year because they did not have money in the bank. Your cash flow forecast will become the most valuable business tool you can use. On our one-to-one session this week we will look at what if anything you can trim - you'd be surprised what your money can disappear on.
Week 5: Identifying opportunities
This is where you can look at improving your income, not necessarily the overall amount but when it feeds into your business. Do you give your clients credit terms, do you offer discount for early repayments are you insisting new clients pay in advance. There will be ways in which you can tighten up your cash flow by implementing simple business systems. If you are worrying that clients will leave because you want paid on time - ask yourself - do you want clients that you constantly have to chase, if their heating broke down you can guarantee they'd pay the engineer that day. You can guarantee that they also do not work for free do not let fear stop you from strengthening your business.
Please take time to download the excel template, personal survival budget and wish list questionnaire.