How are you and your business entering 2021? Are you trading at a profit? Are you able to reserve funds to pay liabilities? Are you taking enough wages for yourself? Or are you growing your business?
If you are struggling with any of the above (or do not know the answer) then maybe you need better:
bookkeeping
analysis of your business results
strategies for your cashflow
business planning
financing preparations
Here's our step-by-step guide to conducting a DIY business health check to identify what's functioning poorly, what needs realignment, and some things you need to consider for sustainability.
Get your bookkeeping accurate
A healthy business needs to prepare accurate records for you to manage it.
That is a time-consuming process if you are not doing it correctly and often this is what causes many business owners to dislike bookkeeping. Often business owners will grow rapidly at first without a proper administration system and they become overwhelmed with the books.
Get the bookkeeping corrected right now to effortlessly* build up a wealth of information about your business. The advantages of this are below.
Decision making my easy
If you have accurate data already, congratulations! You have great business management habits and it is no doubt already saving you money on business compliance.
Did you know that your data is more useful than just preparing BAS and tax returns? By understanding your business through its figures you can improve your profits.
If you want to make serious profits then you will need to control where your money is being spent.
At the same time, you will want to build a reliable and consistent revenue stream.
When you know where your money is going and where it is coming from, you are ready to make educated decisions about what to do to increase your profits.
Rest and play knowing you have dollars in the bank
You cannot work all the time and we all need to rest and play. When you are not in your business, will you be thinking about your business?
Cash planning is a decision-making process that means you have answered the questions around your business' financial security well before you switch off from work. That is true peace of mind.
The world has its ups and downs and it is not always going to be the best of times (or worst of times). No matter what state your business is in, at least you will have a cash plan and financial security for your business.
Profit and Growth Planning
We normally think about what we want in life in open-ended questions that are too difficult to answer. Here is an example: "Can I afford to buy something (an investment, a boat, a vacation)?"
When you plan your growth, those questions become statements of intent such as: "I will buy that something (an investment, a boat, a vacation) in 3/6/12 months and I know I can spend $X dollars!"
Now you have a motivating goal and it's a win-win scenario You want to build your business and, in turn, your business grows in health and wealth from your motivation.
Every business wants a loan
Once you decide to commit to your business, you will want it to grow in its market reach and to help more clients; thereby creating more profits for you.
The fastest way to grow your business is through planned financial leverage. There are plenty of lenders who can help, but they need to know that you have the aptitude to grow your business.
If you are now able to answer all of the questions in the introduction of this blog, then you are ready to approach lenders and accelerate the growth of your profits!
Here are those questions again:
Are you,
Trading at a profit?
Able to reserve funds to pay liabilities?
Taking enough wages for yourself?
Growing your business?
If you need any assistance with the above, you can contact us for an obligation-free cloud chat. This is what we love to do and we are ready to help you grow too.
Because it is almost effortless when you have a digital office in the cloud.