Putting Your Finances First!
By Rebecca Allam
Throughout October, we made it our mission to remind you how important it is to stay on top of your finances.
For the most part, people decide to embark on their business ventures for more reasons than just raking in the money. For a lot of us, it's because we have a passion for that particular skill or activity, for others, it's because they see what they do as a way of helping people and is very rewarding. But ultimately when you start your own business money has a very big part to play, it's the difference between having a successful company or an expensive hobby.
It is very normal at the beginning of your business journey to set a goal of what you want your business to look like when it's set up, but quite often people forget to set themselves financial goals. Having a financial plan and setting benchmarks for your future is so important so that you can see where you are going and also look back on where you have been. Planning for your financial future is crucial if you want to stop making knee-jerk reactions to cover up short-term cash flow problems. It's important to set financial targets, including budgets, profit and loss and cash flow forecasts and review them regularly.
When you talk about finances a lot of people automatically think about turning a profit because that's what it's all about. But even the most ‘successful’ business will run aground if it runs out of cash to cover day-to-day costs of running a business. Make sure you fully understand how much your business needs to keep up and running each month, this could be things such as rent, salaries and supplier bills.
At The Business Clinic, we want to make sure your business is working right from every angle and that you are not only working for the present but to facilitate a comfortable future, we want to do our bit to support you in making that happen. If you need support with planning your finances we can help no matter what the situation, even if you feel like it's too late - there's always something you can gain from speaking to someone about it.