Do the words cash flow management bring you out in hives? Do you struggle to understand how cash flow and pricing are linked? Do you understand how critical cash flow is to your business? Cash flow is an essential aspect of your business, and you need to understand it. But if it currently makes your head spin, you’re not alone!
So if you’re looking to better understand and manage it, keep reading, as this blog post is just what you need.
Cash flow management is basically what's coming in your business and what's going out of it. It also covers what's gone out of your business and what’s coming up and due to go out of your business. Because it’s essential to know what payments you have coming up so that you know if you've got enough cash to last you.
There's a saying: ‘Revenue is vanity, profit is sanity, but cash is king’. It’s a good one to remember because, ultimately, if you don’t have cash in your business,...
As a business owner, there are many difficult conversations you’ll need to have. But when it comes to the most difficult, pricing has to be right up there. So many people find it difficult to be more confident with pricing, especially when putting yourself out there and talking about what you sell and how much it costs.
But it’s essential to grow your confidence around pricing conversations, especially if you’re looking to grow. I recently chatted about this with Louisa Clarke, a verbal communication specialist and restorative practitioner. She helps take clients from dreading those challenging conversations to feeling like they know what to say and feel okay saying it.
So if you’re looking to get more confident with pricing and sales conversations, here are some tips that will help.
When it comes to talking about money and pricing, the biggest mistake people make is waiting for those...
When you start your own business, you want it to do well. That’s why it’s so important to build it on the right foundations. Those pillars provide stability for your business to grow on. And it’s no different for your financial system. It, too, needs to be built on the right foundations. Because without it, you’ll find yourself and your business floundering.
There are four key pillars to consider for a sound financial system to be put in place. Otherwise known as the 4Ps, these are pricing, profit, performance, and planning. So if you’re looking to get your business onto solid financial footings, keep reading to find out more about each of these pillars.
This is the main one I talk about the most because it’s so important. If you can get your pricing right, particularly in a service business, other things will follow. Getting your pricing right means you can pay yourself more, earn more, and pay other people to...
Running an online business isn’t as easy as you often think it will be. Marketing is one skill many small business owners struggle with, especially when it comes to audience growth and converting those followers to sales. But often, once you’ve mastered marketing on one platform, you can transfer those skills across all other social media platforms.
If you’ve wondered how to make money from an online audience, you’re not alone. I recently chatted to Helen Perry about this on my podcast. Helen helps other small businesses with their content marketing on Instagram and via email. She shared some excellent insights on the reality of making a business from an online audience. So if you’re looking for some tips on how you can use social media to grow your business, keep reading!
As with anything, growing an audience takes time, and there are no shortcuts. You need to take your time to really understand the...
Do you know what your business will look like in 12 months' time? A lot of people will say forecasting isn’t worth bothering with. After all, why would you forecast and look back at the last couple of years and what happened in that time? I firmly believe that you should always be looking to know where you’re going. Because if you don’t know where your business is headed, you’re just going to keep drifting around and missing potential opportunities and growth.
When you have a plan for the next 12 months, you have a good direction of travel. You know what you want to do, where you make your money and how you want to make money in the future. Now you might want to carry on the way you are, or you may wish to change what you’re doing every three months, and that’s ok. But do you want to create lots of done-for-you products? Do you want just to have five clients and spend a day each week delivering for them? And if you do,...
Have you ever wondered how to get investment in your business? For many business owners, it’s something they may never think about or want. But depending on your goals, it’s worth thinking about investment or borrowing, as they can help you quickly grow your business to the level you want.
I must confess, this isn’t an area I’m an expert in, so it was great to have a podcast chat recently with Chartered Accountant and founder of Raised Up Finance, Deborah Edwards, on this subject. So if you’d like to learn more about getting funding for your business, keep reading!
There are many different ways a business can grow. But if you’re looking at growth in terms of funding and investment, it comes down to two key things - the speed you want to grow and your attitude to risk.
The speed you want to grow will help determine the choices you make for your business. But your attitude to risk will also...
Your tax bill is probably one of the most unexciting things to talk about. But it’s something that can often keep business owners up at night. There’s a real fear and lack of understanding around taxes and if that’s something that worries you, know you’re not alone! After all, you don't want to suddenly be surprised on January 25th by a £5,000 tax bill and have no idea where you will get the money to pay for it.
So it does pay to understand your tax and educate yourself on how tax works because that’s the best way not to be surprised by your tax bill when it arrives!
There are several different types of tax, depending on the type of business you have. So if you are a sole trader, all of your income is taxable as income tax and National Insurance. Remind yourself that you should be putting aside 30% of your income less costs if you can. Put that money into another account at the end of each month.
Pricing is one of the big issues business owners and freelancers struggle with. Far too many entrepreneurs opt for hourly billing when they start out, only to get stuck in the cycle of charging per hour for their expertise. It’s a pricing model that limits earning potential and stunts any decent level of business growth. It also makes it difficult to outsource because you’re constantly thinking about your bottom line - it’s why I always recommend moving to fixed prices and packages as soon as possible!
But if you’re currently charging per hour, how can you move to fixed pricing?
I recently interviewed Geraldine Carter, owner of SheThinksBigCoaching.com, on this subject for my podcast. She helps Chartered Accountants with pricing and business strategy, so they can go from overworked and underpaid to nicely compensated with a regular, sane work week. So if you’re looking to stop hourly billing yourself, here’s how to switch to fixed pricing.
How can you pay yourself more? It’s something many small business owners ask themselves and small and micro businesses, in particular, struggle with this. When it's just you, it can be difficult to make sure you're paying yourself because you tend not to think of yourself as a salaried person or an employee in the business.
But actually, you need to start thinking about yourself as somebody else you need to pay and not just an afterthought. It’s not just about paying yourself whatever's left in the bank at the end of the month. Because when you do that, there's a temptation to think that you’re doing really well in your business when you’re not! This is especially relevant if you’re a service business and delivering a lot of the work. You can often find that you’re actually not paying yourself anything and working for free or very little. The thought is its work that isn’t costing anything because it’s ‘just’ your time -...
How can automation help with your pricing? If you think automation has nothing to do with pricing and the other financial aspects of your business, you’re wrong! Automation can help you get more for your time without working harder or longer. It enables you to automate some of your systems and processes so you can work more efficiently. And if you’re charging via fixed cost packages or retainers (as I recommend!), automation enables you to charge more for your time and not get penalised for being more efficient.
I recently had the pleasure of talking to business process automation specialist Kelly Goss. Kelly works specifically with a no-code automation platform called Zapier. It’s excellent for utilising different automations within your business and is perfect for any sized business. Here’s why you need to think about automation, how to get started and how it will positively impact your time and money.