Cash in Business is KING
In any business, there are six cash drivers - six different areas within the operation that either generate or consume funds. Your job as a business owner is to ensure these cash drivers are managed effectively, either by you or someone else in your organisation.
Learning what these cash drivers are, what they mean to your business and how to manage them puts you in control of your cash flow, which ultimately leads to a more profitable, enjoyable and balanced business.
The trick is to understand these 6 cash drivers, and to continually monitor them all separately.
The 6 cash drivers are:
1 Sales
2 Debtors
3 Overheads
4 Cost of goods sold
5 Creditors
6 Stock / inventory / WIP
Ongoing improvements and maintenance of the performance of these cash drivers will release the pressure of negative cash flow, and prime your business for growth and profitability. It takes close attention to detail and consistent application of the principles but the rewards are definitely worth it!
The most common cash driver that most business owners are aware of is sales. And it’s usually the first one you start to work on.
The other five cash drivers are just as important to understand and measure.You can’t manage what you don’t measure. To measure all six cash drivers, ibalance use a financial tool called iprofit. The benefit is that any business can now monitor and measure their business live.iProfit basically shows a business owner where their hard earned cash is disappearing to. Using accountant’s figures from Profit & Loss and Balance Sheet, iProfit simply calculates 16 Key Performance Indicators. These KPIs are then used to drill down into the company’s financial position to uncover poor cash flow or productivity.
iProfit’s ‘What if Scenario Tester’ also enables us to examine how the 6 Cash Drivers impact future cashflow and profitability.
Business Plan
It's truly amazing how so few small businesses prepare a Business Plan then continue to follow through with an implementation. If you know what it is that you want to achieve, you need to plan carefully and commit to it in writing. It will then be much easier to implement and it will be more likely that you realise your GOALS.
There is some evidence to show that 80% of small business owners don't prepare a business plan and certainly don't run their business from a business plan. In truth, that figure may even be greater.
You won't get any finance these days unless you have a Business Plan. The problem is that what is acceptable to most financial institutions is not necessarily what you actually need for YOUR business.
Cash-flow projections, some sort of vision statement and a "pretty" presentation will normally suffice to get your finance.
However, the primary purpose of a Business Plan should be to provide a "road map" for YOUR business. While funding is important, it is vital that a business owner "plans the work, and then works the plan."
There are many steps to a Business Plan:-
- Establish a clear business statement for your business
- Have a sustainable and competitive advantage over your competitors
- Know your cash flow/budget
- What stock do you hold?
- Growth strategies for your business
- What are your competitors up to?
- What marketing works/doesn't work for your business?
- Staff
- What are your strengths and weakneses?
- Do you know what can affect your business externally?
A clear Action Plan is central to any Business Plan and all the Action Plans must be totally clear on who is accountable for what action and when each action will be completed.
Most business owners place their Business Plan in the "too hard basket" only to the detriment of their business.
When will you create your Dream Business Plan, then put YOUR Business Plan into ACTION?
Asset Management Made Easy: Definitions
Asset:
BusinessDictionary.com defines: asset- "something valuable that an entity owns, benefits from, or has use of, in generating income."
Webster’s dictionary defines: assets- the plural version, “entire property of a trader or company of traders.”
Asset Management:
Asset management is essentially tracking in order to optimize the use and value of the assets, from the personal to the global level. As Robert Michael points out in his article “The Definition of Asset Management” on elota.com, asset management is “not something you can buy, but rather a discipline you must follow in order to maintain your assets.”
The professional field of Asset Management has its own professional body, the Institute of Asset Management (IAM) with its own online magazine Assets. In an attempt to clarify the meaning of asset management, they pointed out that “assets can be defined at many levels and this is a common source of confusion about the nature and priorities of asset management.” To complicate the picture, as assetmanagement123.com points out, “asset management is often used as the synonym of investment management or fund management.”
Read more at Suite101: Asset Management Made Easy: Definitions http://www.suite101.com/content/asset-management-made-easy-definitions-a364674
Choose the Right Business Coach for your Dream Business
A business coach is an inspiring guide behind your developing and profitable business. Working with a business coach is a good investment to make but it is certainly the best till you get a good and admirable coach according to your business. So let’s see some of the general tactics for getting a good coach.
There’s a famous business saying “Hire Slow, Fire Fast” that applies to employees. We must check someone who has attended and graduated from a recognized coaching school, and chose someone with several years of experience as a consultant, which leads to more assurance that they are skilled and knowledgeable.
Coaching is all about getting unstuck, taking action, living to your potential. Consulting is about brainstorming and getting advice and education, so this must go hand in hand here . Ask questions, get answers and get closer to a decision.
Then you must get to know about the person you want to work with. Check out his sites; people's opinions, comments, blogs and media ; their affiliations, association memberships, certificates and awards they have won or been nominated for ; the clients they have been working with . What they have to say about him. In this way you can create a background about his past experiences and achievements.
They must have solid business experience as a business owner, senior executive with responsibility for sales, profit & cash. Additionally they should be able to demonstrate a level of knowledge and understanding that gives you the confidence that you can trust their judgement. And you can know this if the business coach runs introductory seminars attend one to get a sense of the type of person they are and whether they sound like they know what they’re talking about.
And simply before opting someone ask to yourself do you feel that it's a good fit, does the coach challenge you to step up to your greatness, to be accountable for getting things done? Or does the coach let you get away with being less than you want to be? i hope our blog works for you.
How Can business Coaching Ensure Success
A good business coach helps you realize your dreams, goals, and achieve success through careful step by step planning and processes. The business coach is there to help you with resources, support, motivation, and planning of your business venture.
When you have a business that seems to be failing, or if your business is simply not going anywhere, you are more likely to lose money by doing nothing than by spending the money on a good business coach. Starting a business can be difficult and costly, but starting that same business can be more costly if you are not sure what you are doing.
A right business coach can predict your ways of success, help you run your business, and grow day by day. Business coaching is the new practice to ensure that your business remains on the right track to success. This concept entails analysing the path your business has tread while establishing the new way forward. Working with business coaching professionals will assure you of receiving the very best advice and services available.They wil trigger your imaginative and conceptive side and will run according to your will. One can be guaranteed that upon attending business coaching sessions your mind will be more open in welcoming new ideas and fresh approaches to solve everyday challenges.
The Business Coach helps you clarify your business goals and objectives and helps you develop the skills and acquire the resources needed to operate a successful enterprise. They help you in picturising bigger for your business and life. A business coach is Self-confident and appreciative of your developing strengths and abilities; enjoys being involved in the growth and development of your business. so probably he is the one with whom you can feel commitment to understanding and growing, and to confronting and working toward solutions to business problems that may arise.You feel a bond or connection with your Business Coach, experiencing the relationship as one of value in which mutual interest, respect and straightforward communication are constants. so abstracting all simple and covenient way of fulfilling your business desire is business coaching.