Small business cash flow. 3 steps to stability | Willem Gous

Small business cash flow. 3 steps to stability

Fixing small business cash flow is not something you usually fix overnight. Also, telling you that you should fix it usually only leads to frustration because the people that tell you rarely give you the tools to fix it. In this short post, I will share what I did to fix my small business cash flow issues many years ago. It has worked well for me and I am sure it will work well for you too. Small business cash flow solution #1: Bank your taxes I am a VAT registered company in South Africa and have to pay my VAT every 2 months. I opened a call account where I put all my taxes on every invoice. That way I cannot spend the money and when tax time comes, I have it. I found previously I used to spend my tax money, that created a lot of crap in my life. This helps to avoid that. Small business cash flow solution #2: Save 52 times Saving money for a rainy day helps. I never had the money to save big every month. So instead I saved every week. I have automatic transfers to an external account NOT connected to any online banking. Why no online banking? So I cannot spend it.  I am not talking about thousands every week, I am talking a few hundred a week. That is all. Next thing you know you have 5,000, 10,000 or even 20,000 waiting and ready to save your behind in a tight crunch. Small business cash flow solution #3: Get to know your accountant Let your accountant, if you cannot do it yourself, draw up what lies ahead every week. What money you will need so that you can plan from Monday how and where you will make the money. This guides your to-do list and what types of conversations you have with customers. Let your accountant do average analyses on your expenses. So if you spent X1,1 on an item you usually spend X amount on then it needs to be marked in red and discussed. This last step, once I applied this, my unplanned expenses disappeared in 6 months. I was on budget consistently from then on.

Free book for you

Are you sitting there, work piling up, and not taking action, but you know you HAVE too?

I was also in that rut, but I got out and so can you. It was the quickest way I got out of a rut, and now you can use it too.

A simple and straightforward 20-minute guide filled with tactics and steps you can use To Overcome Procrastination, Achieve Your Goals and Get the Results You Really Want and Need Right Now.

Willem Gous

20 Mar, 2018

<< Return to Blog Home

Connect with me on social media

Related Posts

Free book for you

Stuck in a rut, work piling up?

I was also in that rut, but I got out and so can you.

A simple and straightforward 20-minute guide filled with tactics and steps you can use To Overcome Procrastination, Achieve Your Goals and Get the Results You Really Want and Need Right Now.

How can I help you today? See my services.

Leadership

Come and discover your true inner leader through this immersive, customised and realistic event. InsideRisk is the result of three years of research and development. An immersive program about High-Stakes Leadership in Action facing critical thinking, ethics and more.

Innovation

We empower you, your people, to be able to do the work we do when we leave. We are taking innovation out of the boardroom and into the economy. Enterprise level innovation at an SME price. Let us help you innovate your business while building capacity in your business.

Entrepreneurship

Businesses come and go, entrepreneurs remain. The Human Entrepreneur keeps entrepreneurs in the game through a human-centric, entrepreneur first, approach to sustainable entrepreneurial development. For individuals, incubators, development programs, investors and more.

International Speaker

Need a fresh message that motivates, energises and gets people to take action? I work with you to align my work with your message and goals to deliver impact and change. Topics & Events: Leadership, Innovation, Entrepreneurship, Motivation and Team Building.

Share This