Money is what makes your business go round. It’s something that motivates the entire world, and it’s something that everyone needs in times of peace and relative crisis, and because of that, you have to keep a close eye on your finances. But that’s a hard thing to manage when you’ve got an entire company to run, and you might just notice your cash flow slipping away from you.
And as an entrepreneur trying to get your business off of the ground, that’s the last thing you want to have to cope with. So this post is here to jog your memory a little, and remind you of a couple of the best ways to handle money well within your business.
New tech means you can access your finances from anywhere in the world, but these developments don’t change your ability to handle them well. (Image)
Change Your Cash Flow Forecast Regularly
The first thing you’re going to read in a section on how to find a financial planner is that you’re probably there looking for one because you don’t know how your cash flow is changing. And that’s a huge problem – you need to be able to keep up with the fund your company is bringing in and sending out on a daily basis, as it’s ever changing and reflects the success of your venture.
So the first thing you’re going to want to do is set some targets. That doesn’t have to be hard when you’re clued up on what a cash flow forecast is, and how you can create one. You need to know how many sales you’re likely to make that week, when the money from them is going to track into your system, and then what costs are going to suck those finances up. Voila! You’ve got a template you can regularly update that shows you what goals you need to set to grow as a business.
Make Sure You Receive Payment Quickly
Whenever you make a sale, you’re going to want to receive the money earned from it as soon as possible, and that means you’re going to need to invoice your customers or private clients whenever a transaction is completed. Reminding a late payer that their invoice is still outstanding might seem like a bothersome task, but it’s one that’s going to guarantee longevity for your business.
After all, you’ve sold them a product, or you’ve completed the work you promised, and now it’s time to get what you were promised in return – it’s a simple matter, but it’s one that might be delaying your cash flow without you even knowing about it!
Handling money well is always going to be a subjective matter, and what works for you might not work for the business next door. So whenever you come across a post like this, take it with a pinch of salt – use the tips listed to inspire you, but make sure you’re never trying to implement a method you know won’t work.