Running a business is like constantly launching a rocket ship – there is so much energy needed to get it off the ground. And if you’re a solopreneur, you wear every hat in the business – sales, marketing, tech support, customer support, content creator. The list goes on and on.
Where does your financial hat sit in that order of priorities?
If you’re anything like I was, you’re probably managing your incomings and outgoings okay, or you have outsourced it to someone else. Whilst this is great to manage the day-to-day, when do you step back and look at the bigger picture?
Setting a budget and looking at my cashflow forecast was always something that I was going to get around to ‘someday’. Then my business was impacted, like so many others, by bushfires and covid restrictions. And I realised that ‘someday’ had arrived!
I found the secret to successful cash flow management was to make sure it’s time-efficient.
Time-efficient cash flow management frees you up to focus on all the other areas of your business that are in your zone of genius. And it allows you to meet your financial goals more quickly because what gets measured gets results!
How to achieve time-efficient cash flow
1. Set yourself up to succeed
Invest quality time upfront to get things set up (with support if needed) to create a structure that you can easily follow. This way you create an easy to interpret document which allows you to quickly take action to fill any gaps, rather than waiting and realising it’s too late.
2. Little and Often
Choose two dates every month (e.g. the 1st and 15th) and schedule them into your calendar. These appointments with yourself are for you to update your budget, check your cash flow forecast and pay bills or move money around to the appropriate accounts. This streamlined system will mean you spend a couple of hours a month on your finances and know at any given point exactly where you stand financially.
What process do you follow in your business to manage your money? If you want support to get started, simply complete the form below and we will be in touch.