I don’t have enough money
Over 90% of Business Owners that complete our Business Analysis Questionnaire, tell us they don’t have enough money.
If you don’t have enough money in your business, chances are it will be because of one of these issues:
• Not enough sales
• Not charging enough
• Spending too much/expenses too high
• Not invoicing customers regularly
• Customers not paying on time
• Poor Cash flow
• Not analysing/reviewing the numbers regularly
Whatever the reason is, not having enough money can become a serious issue for a Business and for the Business Owner/s. There’s the immediate problem of not being able to pay your bills, and most likely if you can’t pay the bills then you won’t be paying yourself a wage either. As your stress levels escalate it starts to impact on your personal life causing a lot of sleepless nights, and your health and relationships starts to suffer.
The good news is there is light at the end of the tunnel. It is possible to turn things around and it may not be as hard as you think. Getting all the small things right can often pay off with big results.
Here are our 7 tips towards achieving Financial Freedom in your business:
1) Set Sales Goals/Targets and review your Sales at the end of each week.
2) Review your pricing to make sure you are charging enough to cover your fixed and variable costs, plus remember to add some profit for you.
3) Ensure you increase your prices annually to keep up with inflation (CPI). If you don’t do this you are effectively going backwards every year. I quite often see businesses who haven’t increased prices for 3, 4, 5 years or more. This could equate to a 15% reduction in income over 5 years.
4) Ensure you review all of your expenses regularly. Sometimes people get so focused on their sales or other tasks they forget to look at what they are spending. $1 saved = $3 earnt.
5) Review your Invoicing process and limit your credit terms to a maximum of 7 days. Make it easier for customers to pay and ensure they are paying on time. CASH FLOW IS KING.
6) Get educated on Numbers. Spend a couple of hours with an Accountant, Financial Planner or Business Coach and get them to teach you how to read Financial Statements including Profit and Loss Statements and Balance Sheets. It could be the best few hundred dollars you ever spend.
7) Review your numbers on a monthly basis. A lot of people I see only look at their numbers once or twice a year. It’s too late to make any adjustments to your sales or expenses if the data you are looking at is 6 to 12 months old. Great Business people know their numbers.
We hope these tips lead you towards having more money in your Business.
For an obligation free conversation about any of our coaching options please drop us a line today, or give us a buzz on 6583 FUEL. We’d be happy to tailor a solution to suit your business or personal development needs.