You don't know what you're missing. Allow me to enlighten you.
Getting a business off the ground is a huge undertaking – one that’s often undertaken on a wing and a prayer and not much forward planning at all. Now that you’ve made a start, it’s important that your business continues to thrive in the coming years.
Keeping your business finances in check will be the difference between success and failure. Your business exists to make money, but if you don’t get the foundation of your finances right, you could end up without anything left after your expenses.
It might seem a bit morbid or sad to think about it now, but one day you’ll be leaving your business. It could be because of a sad reason, but it could also be exciting – you’ll be moving on to something new or retiring to enjoy world travel or time with the family.
One of the biggest problems our clients face is getting clients to pay their invoices on time. If you don’t get the money you’re owed when you need it, you can face serious cash flow issues.
We all know that the sooner we send out our invoices, the sooner we get paid. However, actually remembering to do it is an entirely different thing.
An important factor that can sink a small business is not being able to get the money you’re owed. You send out invoices and hope for the best, but if clients take too long to pay or ignore you, then you don’t have the cash in the bank when you actually need it.
A credit control process is a way for you to ensure you get paid on time every month. If you’re sending 20+ invoices a month – or you’re regularly getting paid late – you should consider creating a simple policy.
Creating a lean business in 2018 will have myriad benefits – you’ll have more money available to help you grow, and you may be able to draw out more to enjoy in your personal life. By lowering your expenses and saving money, you help to insulate yourself against fluctuations in the market. It’s a win-win. Contact the team at Bookbird for more money saving tips.
If you asked me what the single most important factor differentiating a successful business from one that’s struggling, I’d shout, “cashflow!” Having positive cash flow enables your business to meet its obligations every month, while still having the funds available to grow and take advantage of opportunities.