CashFlow & Budgets
Why this is so critical to know…
It's easy to keep working
Many business owners struggle to forecast the future finances.
Knowing this can help you make great decisions and also help your achieve growth in your business.
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I know what you're thinking...
Who has a crystal ball on what is coming down the pipeline. How am I expected to know what next month will bring, it can be hard to predict next week, let alone 6-12 months.
But if you don’t try…
You will be in the dark, and stay in the dark!
Projecting your business finances, or considering your cash flow and budget position can be super daunting, so much so that over 50% over businesses just don’t do it.
One of the hardest things in business can be predicting the future. We really need psychic powers and be able to read the minds of our customers and clients at times.
This is especially difficult in your first and second 12 months of business.
Let’s be honest, this is just guess work at these points.
Once you have a couple of years trading, trust me it gets a hell of a lot easier.
Pull out your magic wond peoples. It’s time to get creative, yet realistic.
You need to open your eyes to your business, look at possible growth, think about the reactions you are receiving and just make a plan.
For example. Your first 3 months were amazing, you had bookings or sales and things were looking like you were going to hit that magical jackpot in your very first year.
Then something changed, the rush slowed, the investment into your social media dried up or you got busier IN your business rather than ON your business.
We have all been there, or at least seen it happen, and suddenly you are relying on word of mouth and repeating customers or clients.
If this happened, you need to be realistic.
Making a projection of investment into marketing and the expected return on that investment can be critical to projecting the next few months.
This is where things just start to get a little easier.
You have found your groove or rythym in seasonal trends.
Or you have a steady flow of funds into your marketing as you have been trading well and you can see the profit being able to reinvest back into building your brand and audience awareness.
So you can look at last years figures and start to see what happened at what point.
This can be a trap also…
As s second year business owner, we can fall into the trap of relaxing and looking at those first 3 months of our first year and start to become unrealistic in our growth expectations.
It’s a perfect time to keep your head OUT of the clouds, feet firm on the ground and really assess what happened and what is going to happen moving forward.
It’s also a trap to see your sucess and then get caught up in the high life of being a business owner and letting success go to your head.
1 in 5 business close
Within the first 2 years!
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