We have put together a list of resources about everything you need to know to get started with cashflow.
Cashflow management is key to every small business, and there is a lot to know. With some simple tips, cashflow management is a skill that you can master to start, stay and thrive in business. This includes paying yourself, scenario planning and understanding the revenue and costs of your small business.
It is okay if this feels overwhelming or confusing because a lot of people feel this way when they start up. Many Rivers has your back!
Here are four tools we have to teach you about cashflow and get you ready to start your own small business. Or perhaps you already have a small business? These tools will help you improve your cashflow because there is always space to improve.
1. Intro To Cashflow
Good cashflow management is absolutely fundamental to the success of your business. Did you know that 90% of businesses fail because they don’t manage their cashflow well.
In this episode of In Business With Many Rivers podcast, host James Clampett is joined by Many Rivers CEO and Managing Director, John Burn, and WA and SA Head of Region, Lisa Kelman, to introduce you to cashflow. They talk you through some tools you can use to really get on top of it.
2. Paying Yourself
When you are in business, you want to make sure that you are paying yourself, not just covering the costs. We like to say that a hobby is something that costs you money and a business is something that makes you money! Therefore, an important part of business is knowing how to pay yourself.
This video will cover important tax and reporting obligations that differ depending on the nature of the business you are operating. The focus of this power tip is on paying yourself as a sole trader and the two main ways sole traders can pay themselves.
3. Scenario Planning and Investment
You want to make sure that your small businesses cashflow accounts for all situations.
A good place to start is to consider what would happen to your cashflow if you only achieved half the expected sales? What would you do and how would you manage your costs? The best way to do scenario planning is to use your cashflow spreadsheet. Analyse your cashflow and how it changes with different scenarios. A cashflow spreadsheet can also help you pick the right time to make a new investment in your business.
This article will talk you through some of the things to take into consideration when creating your cashflow, and how to plan for some investments down the track.
4. Revenue and Cost
This power tip helps you stay on top of your cash flow by understanding the fixed and variable costs in your business, and the difference between marginal revenue and marginal costs. These are some important definitions that you need to know to understand different parts of your small businesses cashflow.
Many Rivers Small Business Resources
Everyone learns differently, so if one of the above resources doesn’t work well for you visit our resources page to find it in a different format. We have articles, podcasts, videos and even some worksheets available! There is nothing holding you back from becoming a cashflow expert.
For existing clients, don’t forget your Many Rivers business coach is only a call away. If you ever have any questions or concerns, don’t hesitate to reach out.
Not a Many Rivers client? If you think we are right for you, please take the Small Business Self Assessment.
We’re ready when you are.
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