Smart financial planning is what sets a small business ahead of its competitors. Whether you are planning a startup, are already established or are looking to improve your existing operation, keeping your business in its best financial shape allows for forward planning and maximising profitability.
Top tips:
1. Going paperless is not only an eco-friendly decision but also frees up time, banishes the need for costly printing equipment, and is easier for data storage and auditing purposes.
2. Set out a budget and map your actual and predicted spending. Cash flow forecasting keeps your business expenditure on track.
Having a cashflow forecast can mean the difference between sinking and surviving in difficult times, giving a business the edge over its competitors. You can plan for any eventuality within your forecast, resulting in being on top of your finances at any given time.
3. Automating payments ensures businesses are not incurring late payment fees or missing deadlines. It also increases productivity, as staff are not tied up dealing with banking.
4. Ensure you are saving for retirement, and look after your workforce by making retirement contributions for your employees.
5. Cash flow statements are crucial for a business to succeed. All incomings and outgoings should be strictly monitored, with the data updated at least on a monthly basis. Positive cashflow indicates a business that is doing well, although negative cash flow may be more common in new startups due to initial outlay.
Business coaching
Business coaching services can help a business to forecast, measure and monitor finances. They can help a business to become ready for growth and guide it through the growth period, with both short- and long-term financial planning strategies. For further information, contact a Gloucester business coach such as randall-payne.co.uk/services/business-advisory/business-coaching/ or one in your local area.
Good financial planning is key to profitability, governance, decision-making, and growth. Whether you are a sole trader, have your own financial team or enlist the help of an external agency such as a business coach, ensure financial planning remains a top priority.