Tips for a more successful Business

Tips for a more successful Business

Every entrepreneur’s dream is to build a thriving business. Below are a few tips that will help you build a successful business in 2020.

Define your success

Success is both relative and seasonal in that it is different for each individual and it can change overtime. Be clear on what success means to you so that you can be clear on what you are working towards.

Plan

Start of  with the following questions to know if you have clear goals for your business

  1. What is your 2020 revenue goal for your business by month?
  2. What is your 2020 budget/expenses by month?
  3. What is your execution plan to accomplish the above set out goals?

If the answers are not clear you don’t have a plan. Below are a few ways on how you can go about being clear on your plan

First and foremost know how much you made in 2019 and how you made it then figure out how much you want to make in 2020 by either expanding, reducing or eliminating your products or services. e.g. if you run an accounting firm offering book keeping and tax services and a bigger share of your revenue came from your tax offering it would be prudent to concentrate your efforts on that.

Secondly think of your execution plan for the goals you’ve set. You have to be clear on how you’ll make it happen. Dig in on how you made the previous years revenue and double your efforts on making that happen.

Thirdly know how much you spent in 2019 and how it was allocated e.g. Facebook ads, payroll. Your execution plan will determine how you’ll either increase or decrease the expenses.

Execute
A plan means nothing without action. Success is not solely on writing it down. You have also to be intentional and deliberate with what you are doing. Don’t just do things just for the sake of it.

Remember plans don’t always work out so it’s important to learn how to be adaptable in business.

Have a successful year growing your business.

Tips on how to control your Cash Flow

Tips on how to control your Cash Flow

Cash is your businesses super power and in order to operate efficiently and effectively  while accelerating your business growth you must maintain a positive cash flow always. Below are a few tips that will guide you along the way: Get clear on the cash outflows in your business. This means the when, the how and why to every penny that is leaving your business. Also determine the R.O.I ( Return on Investment) of the expense before you make any purchase. Is the outflow needed in the operations of your business or is it just a money wasting outflow?  Get CRYSTAL clear on every single coin that is leaving your company. Operate on 80% or less of your revenue. Assuming your business earns a monthly revenue of Kshs. 100,000 you can not spend more than Kshs. 80,000 on expenses. Set a cap on how much you should spend per week or per month in your business. Put the extra Kshs. 20,000 in a separate cash reserve for your business. Set spending caps for each category Let’s say the categories for your business are Inventory, Operating and Marketing expenses further break down the Kshs. 80,000 mentioned earlier. e.g 50% on Inventory, 30% on Operating expenses, 10% on Marketing expenses and 10% on miscellaneous. Hire a Finance Manager They will hold you accountable and provide insights and oversight on how you will achieve your MONEY GOALS. They will make sure that you that you don’t exceed your allocations and provide an accurate, reliable and timely Financial Management System. On top of that they should be able to dissect that information and provide you with strategies that will help you increase Revenue, CashFlow and generate Profits.
Accountant, C.P.A, C.F.O? This is how you know what you need

Accountant, C.P.A, C.F.O? This is how you know what you need

The main purpose of a business is to make MONEY and the only way to know if you are doing so is by having a proper financial management system in place irregardless of whether your business is just one month old.

Based on your revenue the following tips will help you figure out which kind of financial help is suitable for your business.

1.If you are making less than Kshs. 200,000 p.m

During the early stages of your business you are validating your business idea. You are testing if you have a sustainable business that has longevity and so your focus should be on creating recurring revenue.

Don’t bring on anyone to reduce expenses.

Separate your business accounts and personal Accountant.

Use Quick books self employed, Quick Books online or Waves.

Hire a finance expert e.g. Quick books expert to TRAIN you.

2. If you are making between than Kshs. 200,000 – 500,000 p.m

The key focus should be on streamlining processes and improving margins. Focus on being efficient with your time and resources because you can make more money without making more sales.

Bring in an Accountant or specialized bookkeeper at least once a month.

The 80/20 rule says that 80% of your income comes from 20% of your clients so improve your value and offer by streamlining inefficiencies.

Determine your low profit products or services and improve or eliminate them.

3. If you are making more than Kshs. 500,000 p.m 

It’s about scaling your business strategically and the key is to become proactive as opposed to being reactive to your business.

Bring in a Virtual C.F.O who will help you predict your future and bring your business to the next level.

Create custom dashboards and reporting

Build out a tax strategy.

Let’s get a clearer understanding of the role of each person that you bring on board.

Bookkeeper 

Has the knowledge of doing basic accounting by managing activities such as making sure invoicing is done, bills are paid e.t.c

Accountant 

Is in charge of  tracking the day to day transactions of your business so that they are properly recorded. Makes sure that past records reflect in the financial data.

Virtual C.F.O

Takes the financial information prepared by an Accountant and figures out how to get to the next level. C.F.O’s are forward thinking and usually take on outside data i.e industry analysis to make decisions.

And that’s how you know .

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