Business cannot succeed if not profit-driven. Making a profit should be a focus for short and long term. In addition you should consider cashflow and the ability to keep your business afloat by covering overheads paying employees, and general day to day operations.
How to keep healthy cashflow and drive business profits
Not everyone is financially savvy, and keeping on top of this part of your business can be difficult. However, you should understand a few systems and processes that will make your life easier and your business more successful.
5 key factors for success
- Business profits comes from business success and customer conversions. Define and develop your income streams in your offering of goods and services.
- Cashflow keeps your business alive. Careful cash flow forecasting and monitoring is vital. Define your sales channels for each income steam.ie where will you sell your items, online, store front, party plan, market stall, trade fair etc
- Know your cost base and overheads. Ensure that your gross margin can cover your overheads and know your breakeven point.
- Be proactive and limit spending and analysing your cash flow position. Taking early action to reduce spending can really help in the long run. This could be choosing a cheaper supplier or negotiating better deals.
- Marketing and sales will help drive more revenue and increase cash flow. Be proactive about running targeted sales and marketing campaigns, improving the cashflow within your business. Define your marketing channels for each sales channel. Eg website, SEO, AdWords, Facebook, print, radio etc.
If you want to improve your cash flow management, then reach out to us today. We can give guidance and develop a plan specific to your needs.
Certified Bookkeepers in Capalaba & Brisbane
As Certified Bookkeepers, we have helped clients in Redlands, Brisbane and all over Australia build and protect their businesses for more than 20 years.
The information in this article is general in nature and might not be right for your circumstances. Please arrange a meeting with one of our Accountants to discuss your particular needs. Accountants 2 Business Ph (07) 3823 2344