Work is a lot more fun with a healthy cash flow
Yay! It’s Fun at Work and because we work for ourselves, we’re always having fun at work because we love our jobs, right?
But how well are you looking after your cash flow?
You probably started your business because you knew you’d be doing something you love and are really good at but while you’re enjoying yourself at work, how well are you looking after your cash flow?
Have fun but don’t ignore the important stuff
Sometimes in our eagerness to get work or a project started, the very important things like putting together a proper contract, quote or proposal don’t get the attention they should have
When we’re busy, we often push our finance and admin jobs to the bottom of the list and more than likely, end up doing our invoices and bank stuff at the weekend.
Setting aside time to focus on the operations side of your business may not seem like much fun but believe me, work is a lot more fun if you have no cash flow worries.
A healthy cash flow doesn’t happen by itself
Cashflow needs careful management and whilst it may not sound like much fun, why not spend time some today looking at five areas of your business to see what you can improve.
How can I improve my business cash flow?
How do you price up your time? Are your invoices correct? Do your terms truly reflect what you need from customers? do you know how much your business is owed, by who and when? Do you know when your own business bills are due for payment – what are your suppliers’ terms?
Giving your attention to some of some of these areas of your business operations will pay off massively with a much healthier cash flow.
How much should I charge for my time?
When you complete an order, provide a service or supply goods, you have to allocate your time to that job. When you are in business for yourself time is your most valuable asset, so protect it. Why aren’t you asking for payment up front? How to get up front payment
Are your invoices stopping you getting paid?
This week, I’ve seen some terrible examples of invoices: One had no date, no invoice number and would you believe, one even had no payment details which means their customer had no clue how to pay. If you want a healthy cashflow, this is how you get your invoices paid on time.
When was the last time you reviewed your terms and conditions?
How many years have you been in business? Did you write your terms when you started up and when was the last time you looked at them? Did you know you can (and you should) tailor your contract and terms of business for every customer, product or service? But, a word of warning, never be tempted to copy other people’s terms and conditions.
Do you let your customer dictate your terms?
If you work with corporate customers, do you just accept their terms of business without question? It’s quite acceptable to negotiate terms that work for you but too often we just accept what’s there. An example would be when that customer states they pay on 60 days, but your terms say 30 days. Don’t believe there’s nothing you can do, because you can. Read your customer terms carefully
Let me help with a health check
If you’d like more help with some of the things I’ve mentioned here or would like a full cash flow and credit control January health check, then please get in touch.
If you ask me to help you with your processes, I’ll make sure your cash flow accelerates. Let’s speed it up together. I’ll help you become confident enough to get paid up front and save time chasing invoices.
Did you know Friday 26th January 2018 is called “Fun at Work Day”
No one really knows who created this day, but in most instances, it’s a day that’s not only embraced by the workers but management as well. That’s because most people know that allowing workers to have a little fun at work every once in awhile increases productivity, leads to higher employee retention and makes a more positive work environment. This leads to more productive, creative and loyal workers. Fun At Work Day is a day that is celebrated on January 28th each and every year. It’s also a day that shouldn’t be mixed up with International Fun At Work Day – a day that falls on April 1st. This is a day in which workers blow off a little bit of steam at work. An activity that is usually frowned upon by management.