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Hub You - Cash Flow Planning for Solo Entrepreneurs
1. Don't ask you boss questions you can answer yourselfYes, it is comforting to ask your boss when you lack confidence or feel you need their approval. However, you’ve been employed because your boss believes you’re capable of getting on with the job in hand. Take a step back and look at the problem from another perspective, ask a colleague for help, be resourceful and check the internet or any other resources available.2. Provide solutions, not problemsSpend at least 10 minutes thinking of possible solutions to a problem before going to your bos
Start up costs include inventory, legal expenses, advertising, licenses & permits, supplies, and many more costs that you may not have thought of. To research startup costs you should contact your local Small Business Development Center, contact a SCOR
Franchisee associations are unions. In the modern business world if a group of employees want to form a union and the employer doesn’t want it then the employer has a right to close the company. I believe franchisors ought to be allowed to put in the contract that if any franchisees get together and form a franchise association to use as collective bargaining power against the franchisor, other than an association approved by the franchisor, then the franchisor should have the right to terminate the franchise contract with all franchisees in that region immediately
So… what is cash flow planning? Cash flow planning is projecting your future cash inflows from sales, services, and loans, and comparing them to your future cash flow needs (suppliers, salaries/wages, loan payments, taxes, etc.). The difference between the two is your net cash flow.
Why is cash flow planning so important? Cash flow planning can help you identify problems down the road, and fix them before they occur. Cash flow planning can also help you make decisions such as should I attend that conference I’ve wanted to attend, should I buy the new computer I’ve been wanting, or do I need to work extra hard this month to avoid a cash flow deficiency next month?
The first step in planning your cash flow is knowing where you spend your money! Solo entrepreneurs need to have a good grip on both their personal and business spending, as most solo entrepreneurs rely on their business income to meet personal finance goals (i.e., pay the bills!). So, you should track both your personal and your business spending, although I recommend that you keep them separate (that’s a topic all by itself).
What’s the best way to track your spending? You can use pen & paper, spreadsheets or a software program. The best method for you is the method that you will actually use on a regular basis.
You should project your spending for at least the next 12 months so that you include annual and other periodic expenses. If you are experiencing a cash flow crisis, you should track & project your cash flow on a weekly basis, instead of monthly.
If you are an existing business, you can project your cash flow for the next year by reviewing your expenses for last year. If you are a new business, you will need to estimate your start up costs in addition to regular operating expenses.
Start up costs include inventory, legal expenses, advertising, licenses & permits, supplies, and many more costs that you may not have thought of. To research startup costs you should contact your local Small Business Development Center, contact a SCORE
The first postcardsThe first postcards really weren’t postcards as we know them at all. The idea came from envelopes that featured printed pictures. The first card sent post in the United States was privately printed and copyrighted in 1861. It certainly didn’t have anything to do with postcard marketing. Indeed, many postcards first evolved as sort of greeting cards. It wasn’t until 1870 when the first postcard as we would recognize it, was printed. And it was more of a historical issue for the Franco-German War. But marketing is a powerful force, and it only
Why is cash flow planning so important? Cash flow planning can help you identify problems down the road, and fix them before they occur. Cash flow planning can also help you make decisions such as should I attend that conference I’ve wanted to attend, should I buy the new computer I’ve been wanting, or do I need to work extra hard this month to avoid a cash flow deficiency next month?
The first step in planning your cash flow is knowing where you spend your money! Solo entrepreneurs need to have a good grip on both their personal and business spending, as most solo entrepreneurs rely on their business income to meet personal finance goals (i.e., pay the bills!). So, you should track both your personal and your business spending, although I recommend that you keep them separate (that’s a topic all by itself).
What’s the best way to track your spending? You can use pen & paper, spreadsheets or a software program. The best method for you is the method that you will actually use on a regular basis.
You should project your spending for at least the next 12 months so that you include annual and other periodic expenses. If you are experiencing a cash flow crisis, you should track & project your cash flow on a weekly basis, instead of monthly.
If you are an existing business, you can project your cash flow for the next year by reviewing your expenses for last year. If you are a new business, you will need to estimate your start up costs in addition to regular operating expenses.
Start up costs include inventory, legal expenses, advertising, licenses & permits, supplies, and many more costs that you may not have thought of. To research startup costs you should contact your local Small Business Development Center, contact a SCOR
Well done – you’ve been invited to an interview. But here’s the rub. They’ve told you that they use “competency based interviewing”. How should you prepare?First, it helps to understand a little about this technique and why employers use it. In a traditional interview, the interviewer will ask you questions designed to let you show that you have the skills and knowledge needed to do the job. However, it is also important that you fit in with the team, and with the employer’s culture and style. A competency-based interview is designed to ask you additiona
The first step in planning your cash flow is knowing where you spend your money! Solo entrepreneurs need to have a good grip on both their personal and business spending, as most solo entrepreneurs rely on their business income to meet personal finance goals (i.e., pay the bills!). So, you should track both your personal and your business spending, although I recommend that you keep them separate (that’s a topic all by itself).
What’s the best way to track your spending? You can use pen & paper, spreadsheets or a software program. The best method for you is the method that you will actually use on a regular basis.
You should project your spending for at least the next 12 months so that you include annual and other periodic expenses. If you are experiencing a cash flow crisis, you should track & project your cash flow on a weekly basis, instead of monthly.
If you are an existing business, you can project your cash flow for the next year by reviewing your expenses for last year. If you are a new business, you will need to estimate your start up costs in addition to regular operating expenses.
Start up costs include inventory, legal expenses, advertising, licenses & permits, supplies, and many more costs that you may not have thought of. To research startup costs you should contact your local Small Business Development Center, contact a SCOR
Building a business is like constructing a house. You want to build your home on a solid foundation and then make it your own by personalizing it with your strengths, maybe interior design, painting or decorating, and outsource the areas that are your weaknesses, perhaps plumbing, roofing or electrical wiring. In the same way you want to build your business around your strengths and where you have weaknesses you should look into outsourcing work. So what areas are you strongest in? What are your business’s strengths? Sometime these two things start off being one
What’s the best way to track your spending? You can use pen & paper, spreadsheets or a software program. The best method for you is the method that you will actually use on a regular basis.
You should project your spending for at least the next 12 months so that you include annual and other periodic expenses. If you are experiencing a cash flow crisis, you should track & project your cash flow on a weekly basis, instead of monthly.
If you are an existing business, you can project your cash flow for the next year by reviewing your expenses for last year. If you are a new business, you will need to estimate your start up costs in addition to regular operating expenses.
Start up costs include inventory, legal expenses, advertising, licenses & permits, supplies, and many more costs that you may not have thought of. To research startup costs you should contact your local Small Business Development Center, contact a SCOR
I recently received a phone call from a very enthusiastic, if not perky, flight attendant who has been working in the commercial sector for several years. I could tell that the airliner end of flying was no longer for her; I also heard a certain excitement in her voice as she imagined herself flying within business aviation. Truthfully, it is this type of conversation that inspires me to promote our industry as I believe it is one of the best industries around.Unfortunately, the industry is also going through some difficult times. Compared to the mid to late 1
Start up costs include inventory, legal expenses, advertising, licenses & permits, supplies, and many more costs that you may not have thought of. To research startup costs you should contact your local Small Business Development Center, contact a SCORE counselor, join groups of similar business owners, and read as many books or articles you can find on the subject.
To improve your cash flow, you should:
1. Complete the first 3 steps. You have to understand cash flow planning, track your cash flow, and project your future spending needs before you can improve your cash flow.
2. Create best and worst case scenarios and create appropriate responses to both scenarios. For example, if your best case scenario is to increase sales by 50%, how will you use the profits? Will you put the profits back into the company by investing in new equipment, training, etc.? If your worst case scenario is a drop in sales by 50%, how will you continue to cover your monthly expenses? By planning for the best and worst case scenarios, you’ll be ready for any situation.
3. When estimating your future income, realize that some people will pay late, and account for that fact in your projection.
4. Charge what you’re worth. Many businesses, especially service professionals, under-charge when they are first starting out. This is a great way to go out of business. Make sure you are charging what you’re worth, and remember you’re in business to make money, not to give your expertise away for free.
5. Watch your business spending. Focus on the value the item brings to your business, and avoid lavish spending (i.e., do you really need the fastest, newest computer available?).
6. Don’t hire until necessary. Consider using virtual assistants or temporary employees before hiring permanent employees.
7. Give incentives for early payment for products and services. On the flip side, chase down invoices the minute they’re late. Charge interest or late fees to encourage timely payments.
8. Update your cash flow regularly. Your cash flow plan will change frequently as your business grows. You may want to up
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