There is a risk in creating a business. Most business owners have asked themselves;
1. Is it going to fail?
2. Am I going to run out of cash?
3. Will people be interested in my product/service?
Having great bookkeeping helps enable business owners to not have to worry. There are numerous methods to monitor and analyse how your business is doing via marketing, accounts, and branding.
Don’t:
– Bury your head in the sand and hope
– Bottle up your worries
– Focus on sales or profit
– Repeat the same mistake twice
– Worry about the things you cannot control (e.g., interest rates, the weather and government policy)
Do:
– Face the facts and deal with them
– Talk to someone with experience of distressed businesses
– Listen to suggests and be open
– Focus on cashflow. Most businesses fail because they run out of cash.
– Make a plan A and be ready with a plan B if it doesn’t work.
– Focus on the things you can control in your business (e.g., levels of spending and borrowing, who you employ, product ranges and sales prices.
At JRMA, we are advocates of the 13-week cashflow forecast. It is a simple tool that helps emphasize the peaks and troughs in a business’s cashflow, to enable corrective action to be taken before things get too difficult.
If you want to hear more and to talk to a friendly accountant, schedule a consultation on our website:
Contact | JR Management Accountancy