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BNA 9 Smart Strategies to set your financial roadmap

Profit may not be the first thing aspiring business owners think of when they dream of taking control of their own destiny...
Pl an how you are going t o achieve your desired sal es l evel s -  What are you going to sell  How much of it are you goi...
Pl an your overheads and l earn how t o minimize t hem Understand what overheads you need to run your business each month....
-  -  Reduces stress because everything can be seen in black and white clearly. Builds new habits because variances can be...
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...
-  Helps you to decide the best time to buy stock, equipment etc. Helps you to decide when to pay suppliers, dividends etc...
e.g. service people.  Variable expenses change with the level of sales activity e.g. the more or less widgets you sell the...
3. Revisit your Marketing Plans, how you invoice customers, spending etc. The ideal is to have the cash on hand to meet al...
Break-even is impacted by fixed and variable costs. Fixed costs are those that you incur all the time, e.g. rent, admin wa...
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....
8. 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 ...
b. Cost of your Product or Service Reducing the cost of your product or service can be done in a number of ways  -  Negoti...
c. Reduce Overheads This is just a bit of hard-nosed cost control and needs to happen in well run businesses from time to ...
A common mistake is not putting due dates on invoices. e. Reduce Invent ory and  or Work in Progress In many industries in...
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...
The biggest mistake people make is being too efficient, paying people too early and not using all the terms available. See...
9. Do What Successf ul Businesses Do 1. 2. 3. 4.  They have a Business Plan and a Budget  A Financial Road Map  They are s...