For a lot of people who run their - finances is NOT their strong point.
And that's ok - as long as you remember a few vital things!
Take a world class football player (or any sport you prefer).
Someone who is at the top of his or her game.
Now take them aside, blindfold them - and send them back on the field.
What happens?
Well, very little really!
How long do you think they will stay "world class" whilst they are blindfolded?
Not long at all!
Why?
Because it is totally impossible trying to play when you can't see the ball.
Exactly the same principle works for your business.
If you don't know exactly where you are standing in relationship to your finances, your cash flows.
Well - then you are in effect blindfolded.
And when you're blindfolded, you can't play!
So how do you take the blindfold off?
Really simple - here are the steps:
1) Get on-line banking so that you can have immediate access to your bank account and your bank balance at any given time.
2) On a WEEKLY basis, complete a spreadsheet as follows:
At the top - put the closing bank balance from last week.
Plus deposits into your bank account over the last week.
Less payments out of your bank account over the last week.
Which gives you your balance in your bank account as of today (which agrees to your bank balance per your online banking statement).
3) Under that add income you expect to flow into your business over the next TWO weeks.
4) Less money you expect to flow OUT of your account over the next two weeks.
5) Which gives you a balance you expect in your bank in two weeks time.
By doing the above exercise on a weekly basis - it will force you to keep on looking at how much money you have.
It will give you a very strong understanding of where you will be in two weeks time - which means that you will be able to plan ahead very effectively.
You will know which of your debtors you need to phone and follow up with because you may need the money they owe you in your bank account.
And you will know who not to pay yet as you perhaps need to retain some money in your bank account.
I have seen this process work time and time again - without a doubt, it could make a huge difference to your business as well!
Best of luck with taking the blind folds off and aiming your business in the right direction.
