Throughout my career, I've worked with businesses of all sizes through my roles in consulting, strategic planning and currently as a small business owner myself, and one recurring theme, unfortunately, are the number of small businesses not managing their money and not being profitable as a result.
If you're anything like me, you started your business to be profitable! Your business was to be the vehicle through which you achieved goals for yourself and your family. Now, however, you find yourself buried under a mountain of work, only to wonder why your bank account balances are not what you anticipated.
Where do you even begin? Well, here are a few places:
Cash Flow
Understand that your profitability and the amount of cash in the bank are two very different things. Cash must be actively managed, whereas profits are a number determined by monthly financial statements.
Business funds, just like your personal funds, must be managed via a budget or spending plan. If you don't establish a plan for your money before the revenue hits your account, you are already starting off on the wrong foot. Developing a spending plan will change all of this for good!
What percent of your revenue do you spend on loan or credit card payments? If you have business debt of any kind, creating a plan for eliminating this debt is something that will put more money in your pocket faster than most things, and will put your business in a much healthier financial position should you decide to sell one day.
Most small businesses are formed due to the owner's desire to achieve a higher level of financial freedom for themselves and their families. Are you achieving these goals? Are you paying yourself what you would like to from your business? Do you know what you can afford to pay yourself from the business?
I promise you, no question is a dumb question as it relates to business finance. Don't see your question answered? Just send us your question to [email protected] and we'll respond right back with your answer!
I promise you, no question is a dumb question as it relates to business finance. Don't see your question answered? Just send us your question to [email protected] and we'll respond right back with your answer!
We offer 1:1 services anywhere from monthly coaching sessions to becoming your outsourced accounting team! This really depends on what services you need the most. However, no matter what, we make sure that all of our clients have a Money Plan, and we ensure that each month you are making progress towards making your Money Plan a reality! Click here to schedule a free discovery call to discuss working with us: https://simplified-partners.as.me/discovery-call
As of Quarter 3 of 2024, we are currently working on our first digital course, called Money Plan. This course is available for early sign up via this link: https://forms.clickup.com/9005026954/f/8cbvkma-19853/0P15WBZFG5XQ9KGVL2
Our mission is to help small businesses get financially healthy through better cash flow, budgeting, proper accounting and more money paid to owners. Join us to create a simpler, more joyful money plan for your business.
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