3. Find things that can help you
Most modern banks, including ahem, Kontist , offer services within your banking to help you create detailed overviews of your financial flow. By following and using these services habitually, you’ll gather a whole new insight into the way money flows into and out of your business. These insights will better place your mind when it comes to the cashflow, but then even the next steps like budget and forecasting. Accuracy is key to success when it comes to these numbers, and a constant learning process of what your business needs to cycle is fundamental to developing it.
4. Debt doesn’t improve cash flow
Some banks and organisations prey on people who work for themselves, knowing the insecurity that comes with this platform of working arrangements. Debt will never improve your cashflow unless it is dire, and you have to take on more. Essentially, before making any movements, have a clear cashflow snapshot and seek professional advice. A lot of professionals with the right experience can adjust the cashflow statement to make better sense of the money you already have, or where it needs to go when. On the surface, an extra 5,000 EUR seems like it could improve cash flow all of sudden, but it is not solving core problems that likely exist in the cashflow.
5. Make cuts where you can
Really analyse the expense in your cashflow. Are they all necessary? Could they be cheaper? Could we do without it for a few months? These are the kinds of questions that can transform a business on a small, day-to-day basis. But hey, it’s how we are all living right? See if you can really limit these expenses and best so if you can do so in a permanent way - and compare it to past months. Calculate how much you are saving, and indulge in that moment. Cashflow is about asking the right questions and seeing the results.
It’s often not easy to sit face to face with the state of our finances, especially when we are hustling to do the work we want to be doing. However, going to the gym or exercising is considered good for your health. Well, doing your cashflow and looking in on your finances is the same principled concept. It’s good for the health of your finances - and usually, that’s going to be good for you too! It is always recommended to seek the services of a professional who can advise you best on your situation, but, it is also very likely that a healthy idea of what cashflow is and means to your business is a great way to begin to seek out that advice and it’s never going to hurt to know more about skills and tools to keep you in business for yourself, longer.