5 mistakes women don’t want to make when starting a business
1 November 2019
1. Ladies, don’t fail to plan!
Create a budget and a cashflow forecast – don’t use your *intuition* or that crystal ball – make informed decisions – your amazing accountant can help you with this, it needs to be specific and should include your sales, costs that vary from month to month and costs which stay the same; Next is your cash flow – as the name says, it focuses on the physical cash that goes in and out of your business – i.e. how long it takes your customers to pay you, how quickly your stock goes in and out of the business, your pay cycle to suppliers, those pesky loan repayments and anything that you know you may want to purchase for the business in the future; (tip: if you want to raise more money for your business, the more detailed this is, the more your investors will be convinced of your awesomeness, and they’ll feel confident handing over the big bucks 😉)
2. Finance those big ticket items (machinery/shop fittings etc)
Don’t use your day to day cash – simple as that (tip: keep a great relationship with your bank manager & when times are good, ask for that loan or overdraft – not when you are struggling & your business has been flagged as not lucrative!)
3. Money is KING
Yes you want to have minimal costs but growing your money is limitless – just make sure getting there doesn’t take over your cashflow – then we’re back to square one; just make sure you understand exactly what helps you grow your business (tip: it’s generally these three things – no. of customers/the number of times they buy from you/average sales per customer);
4. DO NOT and I repeat DO NOT mix your personal and business finances
Please don’t learn this one the hard way, (like the first time you mixed spirits with wine – ouch!), keep these completely separate – how will you ever know if your business is making money if you mix the two;
5. And lastly but not least – don’t try and do it all & undertake the finance side just to save money
There are so many cloud-based accounting solutions (fancy term for accounting data held over the internet not on your computer) – that it’s crazy and stressful to try and do it all yourself, savvy business owners know they need to spend their time on their business and leave the numbers to awesome geeky people like accountants (#me) to come in and save the day!
If you’re making some of these mistakes, don’t fear, Monopoly Accounting is here to help you understand your business, personal finances & more, to lead you to
FINANCIAL FREEDOM…a place where you don’t worry and are confident about your money & your business….ahhhh serenity now.. They are based on the Gold Coast.