What’s Holding Back Your Business?
What is holding back your business?
Some simple rules for success!
Set a Budget
When you map out your business financially, you can significantly reduce risk and budget for unexpected items. A review of last year’s income will set realistic expectations for the new financial year – then look at how you will ensure this income is generated.
Factoring in resources such as overheads, marketing and any other outgoings should be taken into account. Finally, developing a couple of alternative estimates for revenue is helpful. This should be reviewed and mapped as the year goes on.
Understand Your Cash
Mapping out cash flow is a critical factor in achieving business success. It’s about understanding elements such as how long it takes for your clients to pay you, what the payment terms required by your suppliers are, loan repayments, dividends and any large purchases you might have planned.
Take Tax Advantages
Educate yourself on any business concessions or funding you might have access to . So many businesses don’t realise the opportunities available for them.
Expect the Unexpected
It’s never fun to have to expect the unexpected, but once you make this a business reality and plan for something sudden that may arise, you eliminate ongoing financial stress.
In fact, unexpected growth such as taking on a new client or contract is the death of many more businesses than you would realise, as critical financial questions need attention at this point in time.
While a new, large account might mean an influx in income and profit, it also increases the businesses liability, free cash and liquidity.
For more information, contact your AMD Representative. Alternatively, speak to one of our specialists – Stephen Down or Stuart Fricker.