Business Basics For Your Business
As an entrepreneur you have to wear many hats – the team leader running the teams, running jobs to time and on budget, you manage customers, market the business, payroll, accounting, admin, quotes, invoicing, salesman, debt collector – the list goes on…
So how about a sneak peek of our Business Basics bundle that will help you get on top of some of the basic business tasks and get some tips and tricks to use straightaway.
There are three very important things that you need in business to make your life easier:
- Cashflow Forecast – this should be your best friend, kept up to date regularly!
- Outsourcing – what and who to?
- Know your Numbers – how do you know if the money you spend on your marketing is worth it? You need to know your numbers
When I started out in business the thought of creating and using a cashflow forecast filled me with dread and I didn’t use it for years. However, it became a lifesaver and my best tool for making decisions in the business when we hit some difficult times.
It sounds difficult but in reality, it’s easy. Essentially you set up a spreadsheet of income (including VAT) and outgoings. It looks something like this:
The beauty of this seemingly simple tool is you can see at a glance, what month you can make a big purchase (new truck/tools) or when you can spend extra money on marketing (to get more enquiries) and also where your income gaps are i.e. where you need to book in customers. Don’t forget to add in corporation tax and VAT if applicable to you.
This will also help with your marketing plan as you will know when you need to market for more customers and when you can afford to.
You then run this alongside your bank account and amend numbers daily (yes daily if possible, at the very least weekly). To get a true reading of where the business is at and if the forecasted figures are correct or need amending.
For a FREE template and full tutorial on how to run a cashflow forecast sheet sign up as a member and visit the business basics bundle.
As a business owner, you can get bogged down in the day to day activities of being on the tools so other parts of the business can slide. To make life easier my top tips on how to save time, money (in the long run) and stress is to outsource the following areas (if you can):
- Bookkeeping – you don’t have time to enter all your receipts on a spreadsheet – my advice is to put all receipts and invoices etc into a bag and hand it to your bookkeeper monthly. Best money spent ever!
- Accounting/ Tax Advisor – similarly having a good accountant can take the pressure off and they can do all your VAT returns, tax returns and give you an honest overview of the business and how to save money etc.
- Telephone Answering – this has been important to my business so that we never miss a call. When someone calls the office regardless if we are available or not someone from my company answers the phone. There are lots of providers out there (we use answer.co.uk) and the cost per call is minimal on average 80p a call.
When considering outsourcing always use your cashflow forecast to map out the additional costs associated with it and if you need more income to pay for it!
Know your numbers
If you know some basic numbers in your business you can use this to help with cashflow forecasting and growing or maintaining your business – see the next blog on this!