Lifestyle Tradie Part 3: 3 Ways to Control Your Finances Fast…
I’m serious now…
It’s time to put a stop to making decisions based on emotion, and start making them based on cold hard fact. To be more specific – financial fact first and foremost.
Because the truth of the matter is this; successful business people can tell you exactly how much money they make, spend and keep. The last one being the most important seeing this is what will see your business grow and provide you with the life you dreamt about.
Too many trade business owners we speak with tell us they have no idea about their finances. They don’t know where their money goes from one day to the next.
So how can you make sure you DO know?
Get your books up to date
Don’t sigh… just do it.
You’ll never understand your current financial situation without first having your books up to date.
Literally you need to have your bookkeeper close off every month up until today (hopefully you’re right on top of this one anyway).
Chase your outstanding debts
- You’re not a bank!
- Call in your outstanding money to help your cash flow.
- Every day you wait makes it harder and harder to collect.
- Monthly statements, weekly phone calls and don’t give up (but do it with a smile!).
Meet with your accountant
Stop just drifting day-by-day wondering if you’re losing or making money. Find out the facts once and for all with the help of an expert.
No, not the backyard guy. I’m talking about someone that’s the real deal. Someone that will help review your past (your P&L and balance sheet), set the target to make money every week (aim above your breakeven) and plan for the future (forward forecasting).
When you’ve done this hopefully you will be able to sit back and relax knowing that you are in total control of your business.
Ask yourself this….. do you REALLY know your numbers? Would love to hear your feedback. Please leave a comment below.