[S1:E25] PRACTICALITIES of Small BUSINESS MONEY Management
PRACTICALITIES of Small BUSINESS MONEY Management Timestamp
- [00:47] Difference between cashflow & cash management
- [03:15] Checklist of things to keep an eye on
- [04:29] Check for money leaks in your business – strategy: how to check
- [07:49] Nice to have’s, less money in your account to work with.
- [08:30] What should I be making?
- [09:10] Future Projections & Profit Plans
- [10:52] What happens if you are more then a one-person business?
- [13:33] 10% Savings for the taxman – at least!
- [16:40] Calculating what you need your wages to be – double it!
- [18:18] Business Targets
- [19:14] Correlating the revenue needed by the time you have to service your clients mismatches
- [21:06] If no one complains about your prices, you are too low & objections
- [22:50] Productising your Knowledge for Automated Income.
- [23:15] Don’t judge what you charge, by what you personally can afford – Mindsets!
- [24:20] Don’t use your competitor’s pricing as a benchmark for your own.
- [25:00] USP’s – What makes people buy from you, show value to justify your pricing.
- [26:38] #AskMcCallMedia your questions
Understanding Cashflow and Cash Management
Money in/out at times that is needed is generally referred to as cashflow. But cash management is actually the problem most people have and don’t directly think about. It’s the over spending on the niceities of life and not actually the die-hard essentals only.
knowing how to create financial targets and forecast cashflow
Many of us go into business to take control of our own income.
But not knowing what our own survival income is and what mathmatical calculations you need to correlate that to. What it is your business must produce in revenue to afford you, is another matter. We all know what needs to happen but not neccesarily the skills to work out the plan of attack.
Knowing how to price your services to align with your business needs
Often we price our services on what we ourselves can afford and do not account for the time to deliver such services, verse the volume we need to serve in a given week, to earn what we need to.
What happens is we end up working longer hours, trying to serve more clients and burning out.
Know your self-worth in terms of minimal survival budget, average wage and what you’d ideally like to be earning right now.
Multiple all these figures for a minimal, average and ideal target for your business.
Ensure 50% of revenue is saved for owners of the business and 50% set aside for all other aspects of the business (of which 10% for the taxman).
Knowing your numbers in terms of the number of sales, profits, targets, cashflow needed and everything else means you’ll be able to create your business financial road map plan for the next 12 months.
My added top tip. Check your road map at the end of each month and realign yourself if you’ve strayed off-target to ensure your business becomes a well-oiled profitable venture and not a burn out.
USED IN THE MAKING OF THIS VIDEO
- Answer The Public: Keyword Research
- Tube Buddy: for YouTube analytical research
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