Nearly everyone that goes into business does so to make money. Managing the money made by your business is a terrific way to make the most out of what you have and make more money.
Any business coach will tell you that for your business to have great cash flow wyou need to master a few money management skills, here are 10 money management secrets that Melbourne, business coach David Guest shares with the business owners he assists.
Spending must be tracked
Track your business spending. If you don’t track your business spending, how can you know where your company cashflow went? A spreadsheet or software developed specifically for your business works great for money spending tracking methods.
Each and every one of us must stick to a budget. A business must also stay on task with their cashflow and budget expenses. Income is separated into categories for budget purposes. Costs can change and effect budgets and adjustments can and must be made to assure an adequate cashflow when needed.
Credit is a necessary part of running any business whether large or small. There are many times credit must be used for labor and supplies until business cashflow is adequate to pay these debts. Credit is a necessary part of business but it certainly is not the only part of doing business and as any business coach will tell you there is good debt and bad debt. In Melbourne most businesses under utilize credit for business expansion opportunities, using it to fund business operations instead; this can be a mistake.
Don’t waste money. If you are considering spending or investing money, do your homework and review your cashflow. Study and educate yourself on the advantages and disadvantages of whatever spending you are considering.
Simply being able to balance a checkbook doesn’t qualify you for a BA in money management. This is where Business Coach David Guest from Melbourne comes in. It won’t hurt to take an accounting/book-keeping class or two to know the fundamentals of money and the management of credits and debits, but recognize when you are in over your head and get professional assistance.
Always look ahead
Always look ahead. If this quarter was great, look forward to find out what you can do to make next quarter terrific. If you are planning on employee bonuses for Christmas, start considering how much in June so your cashflow is not negatively impacted.
Always look behind
When brainstorming for new ideas for your business, keep track of what has been previously tried and failed. Remember why it was not a success and you can possibly make changes or tweaks and try a different route permitting you to save both time and money on something new.
Diminish costs carefully
Diminish business costs with care. If you are considering using a new vendor to increase cashflow, make certain you are staying with your business niche or brand for the most part and not going against any of your business strategies. Customers that are accustomed to but fail to receive quality ingredients or products may begin to look elsewhere instead of at your company.
Duplicate strengths or weaknesses
If your business permits technology to enhance the services being provided again and again, continue in this same vein with new and better technology. If doing things without technology is a complete and utter failure, technology will win hands down each time for increasing business cashflow.
Imitation is flattery
What is the biggest and most successful business in your industry? Find them and review what policies or procedures they have in place that makes them successful. What don’t they have in place that your company still holds on to? Imitation is the sincerest form of flattery. Allow them to show you how to get the most for your money management and increase your cashflow.