4 Tools to Ease Entrepreneurial Panic
KNOW YOUR CASH FLOW AND MAKE PROJECTIONS
Knowing what your cash position is and will be in the near future is empowering. Once you understand this important number, you will be able to set realistic goals and feel a little more stable, even when the world around us might feel like it’s not.
If you’re afraid to look at your numbers for fear of not being where you want to be, I want to share something encouraging with you: In the majority of businesses I analyzed through my bookkeeping business last year, the cash projections looked better than the business owner expected! So, don’t let your fears stop you from learning more about your business.
The end of every quarter is a perfect time to analyze your cash flow and make projections.
2. RAISE YOUR PRICES
Once you’ve analyzed your cash flow and set goals, I recommend raising your proces annually to offset inflationary expenses. The cost of doing business inevitably rises every year, and you should be accounting for these changes.
Don’t overthink this one. Consider sending an email to your clients at the end of Q3 letting them know that you’ll be raising your prices 10 percent beginning Jan 1. As long as you are communicative and fair, most clients won’t mind a small rate increase in the new year.
3. ANALYZE YOUR SPENDING
The next step is to analyze your statements for extraneous purchases you don’t need, like software and subscriptions. Keep the things you need but get rid of recurring expenses where you can. This should be done at minimum on a biannual basis.
4. OUTSOURCE
The final step is to consider which tasks create less stress for you. Outsourcing is the best way to free a business owner of time and allow them to focus on the parts of their business that make money. You may want to outsource shipping for your product, or a bookkeeper to keep track of expenses and company payroll.
With additional time to dedicate elsewhere, business owners often find that outsourcing tasks allow them to generate more revenue than before.
Enlist a bookkeeping professional to partner with you to find out where you are and where you want to go in your business. Above all, do not panic. Use the tools above, stay the course and stay passionate about why you started your business.