Business Finance Tips
Getting your Finances right is about 2 things: Profits and Cashflow. Otherwise, you will be working really hard and the rewards just won’t be there. Start by understanding the profit margins on each of the products and services you offer. From there you want to make sure you have the right combination of products and services to optimise your profitability.
Then there is the expense side – making sure you run your business lean so you maximise the profit you make. Now profit is the first part – you also want to make sure you have the cashflow and gearing of your business right so that you can accelerate towards where you want to get to.
Check out the tips below on how you can improve finance in your business
Are you working hard but not making the profits you want? You see, most business owners want to make more profits and grow their business but are not sure how. Here’s the thing… To grow your business, there are 6 key drivers of profit to focus on. It’s called your Profit Engine… And you can use this engine to build
One of the first things we help business owners understand when we start working together is the number of sales they need to make the profit they want. This is important because it gives you something to aim for rather than taking whatever comes your way or ‘as much I can’. So what is that magic number for you? When you know the
Do you ever feel like you are working hard and not getting the returns for all the effort you’re putting in? Well, perhaps there could be something wrong with your underlying business model. Many small business owners have never even considered their business model, and so they don’t know if it’s helping or hurting them. They don’t even know what’s
Cash flow is the lifeblood of any small business. And that’s why it’s important to understand how to manage it effectively. In simple terms, you always need to make sure that more cash is coming in than going out. Otherwise you won’t be in business for long! And while generating more sales will typically lead to more cashflow, there are
Many people starting a business run into trouble when they fail to understand the difference between markup and margin. Most people will price their jobs based on markup rather than margin. Yet it is the margin that represents the profit in the job, hence it is the margin that is of most interest to us. To make sure you make
Many small business owners have never even considered their business model, and so they don’t know if it’s helping or hurting them. They don’t even know what’s really going on underneath their business, and sometimes business is a whole lot harder than it needs to be, because they never took the time to establish a good business model. So, how
Would you like to make better financial decisions in your business? Many small business owners make their financial decisions based on what’s in their bank account (or what’s not in their bank account). Or it is based on how they are feeling and this can be a recipe for disaster. Business is a numbers game so to be a successful
Do you ever struggle to have enough money to pay your tax bill when it’s due? Would you like to have extra money to reinvest back into your business to help it to grow? For this to happen, you need to manage your money wisely. One simple and effective technique is to set up three different bank accounts. Each has
Does your business need a quick cash injection? Many small businesses are sitting on a gold mine of cash that is tied up in their business in different forms. Releasing this can often provide a much needed cash injection for a business. What excess assets does your business have In our experience, most businesses have excess assets of some kind.
Are you putting lots of time, energy and effort into your business but not moving ahead financially? Then you could be working hard and going broke. The sad thing is that this story is all too familiar for small businesses especially in the first five years. Many just try and work harder and harder trying to make it all work
Would you like to make more profit in your business? Too often when business owners want to make more profit they think ‘I need to grow my sales’. While that’s true to a point, one of the easiest places you can increase your profitability is to take a look at your expenses. The best thing about reducing expenses is that
Do you have people that owe you money that should be in your bank account rather than theirs? Many business owners are scared to chase outstanding money in case their customers say no, or that they might get angry or they are afraid if they put too much pressure on them, they may ever want to do business with you