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9 Smart St rat egies t o Set Your Financial Roadmap Profit may not be the first thing aspiring business owners think of wh...
1. Have a Pl an There s an old saying  Most businesses don t plan to fail, they just fail to plan . If you want to achieve...
Pl an your overheads and l earn how t o minimize t hem Understand what overheads you need to run your business each month....
2. Underst and t he Benef it s of a Budget A budget is one of the most powerful tools you can use to ensure you end up wit...
If t hese are t he benef it s of a budget , why doesn t everyone have one  If you need to go somewhere and know the destin...
3. Underst and t he Benef it s of a Cash Fl ow Forecast If a Budget is the most powerful tool to ensure profit then a Cash...
And most of the time, you need to pay for these costs before you get paid by your customers. See point 7 re the  Cash Flow...
4. Use t hese Budget ing Tips Set real ist ic expect at ions -  You are rarely going to get your sales budget completely a...
Check for adequacy   will the expenses you ve budgeted for be enough to generate the sales you ve budgeted e.g. Marketing ...
your break-even point is. Once you know this, you can use it as a basis for setting your targets of profitability. You can...
To work out break-even sales - take fixed costs of  30,000 divided by gross margin of 60  , which gives a figure of  50,00...
7. Underst and t he  Cash Fl ow Cycl e   This image shows  1. On day one we buy in stock to sell 2. On day 101 we sell the...
7. You can see from this diagram that it takes 171 Days from when the goods are paid for until the customer pays for them....
9. Creat e St rong Prof it abil it y and Cash Fl ow by Managing  The Seven Key Numbers t hat Drive Prof it and Cash Fl ow ...
c. Reduce Overheads This is just a bit of hard-nosed cost control and needs to happen in well run businesses from time to ...
d. Improve Cust omer Payment s Your business should not be financing your customers business. Handling customer payments i...
e. Reduce Invent ory and  or Work in Progress In many industries inventory levels and your level of un-invoiced work  Work...
f . Review your pricing This does not need to be a published price or an increase to all your customers. There are numerou...
g. Review your Suppl ier Payment s This is also an area of your business that can result in a big improvement in your bank...
Summary of the 7 Key Numbers Almost every business owner can make small improvements to each of the 7 Key Numbers in their...
Setting goals is only part of the journey. A business must always adjust and aim to develop flexibility to respond to chal...