3 ways to manage your Cashflow in the coming BOOM of 2021 - Finness Advisory

3 ways to manage your Cashflow in the coming BOOM of 2021

2020 has been a hugely challenging year for everyone but 2021 is shaping up to be one of the best years for decades with low interest rates, growing property values and a booming share market. Business conditions don’t look much better than the early predictions for 2021 but how do you maximise and manage your cash flow to set you up for the boom ahead?

 

I’ve got 3 essential tactics to immediately set you up for success in 2021.

 

Here they are;

 

  1. Communicate with your client and customers

Yes, it sounds really basic but most businesses don’t communicate to the people who drive their sales because they think their clients are already getting enough information or they simply don’t have anything to say.  But you’d be very wrong!

 

Your prospects and clients want to hear from you.  People trust the news less and less and many don’t even have commercial TV anymore so your clients and prospects will rely on you to add value through your communications.

 

Here’s the three best ways to communicate;

 

  1. Email – you own your email list and should always be building your list. Unlike social media platforms that regularly change their algorithms and policies that can leave accounts heavily restricted or completed deleted, you own your list and the power to communicate lies directly with you. You will build stronger, better and more trusted relationships that will give you a more rewarding business and ultimately increase your cashflow.

 

  1. Phone – pick it up and stop scrolling! Yes, it’s your best relationship building tool in your business and one of the most under-utilized. Many business owners prefer to avoid direct human contact and rely on sending an email that can be misinterpreted or dismissed if it’s even opened (not to contradict point a. above). So, pick up the phone and start engaging with your clients and watch how your cashflow increases!

 

  1. Website – Oh wow! Where do I start here… Your website is one of your biggest assets, hands down.  And often the most poorly managed and wasted resource in your business.  If you’ve been meaning to update it, then do it and stop putting it off.  Update your banner, simplify your navigation, mobile enable it, get custom photos taken of you and the team, remove the stock photos, insert strategic testimonials, add some video and ensure it’s client solutions focused with benefits highly prominent. Ask yourself the question; why are they visiting your site? When you get it right, your cash flow will increase and the phones will ring!

 

  1. Make sure your systems and procedures are bullet proof

Many business owners just think about bringing on new clients but if you’re onboarding clients or customers into a broken system it will only exacerbate your problems.  Test and retest your systems until they’re bullet proof then you have a basis for upscaling your marketing and to ultimately scale up your business.

 

The four basic areas to systemise are;

  1. Financials
  2. People
  3. Marketing & Sales
  4. Operations

 

Each of these four areas need to be carefully systemised before you can upscale your business in the face of a booming 2021 and increase your cashflow.  The more efficient and effective your business is, the more you can scale and optimise your cashflow for growth.

 

  1. Your financials are your GPS

I always suggest clients produce a monthly profit and loss statement (P&L) within days of the end of each month so they know exactly where they’re at financially and what direction they’re going in.

 

Can you imagine attempting to drive to an unknown location without GPS?  Well that’s how many, if not most, business owners run their business. Many not only wait until the end of the financial year but they wait until their financial statements are due to the tax office which is in May the following financial year. This is not a sustainable way to run your business.

 

Would you just keep driving around the streets for days until you ask for directions or do you plug your location into a GPS and immediately find out directions to your desired location. Well, your financial statements are the GPS for your business.

 

If you struggle to read your financials, then find an accountant who can discuss them with you and help direct your business down the growth path of success in 2021.

 

If you need help, I differentiate myself by being a proactive accountant that works closely with my clients to help navigate them down the path of success rather than just plugging in numbers and submitting them to the tax office 11 months after the end of a financial year- that’s just crazy!

 

Click below if you need some help and book a free, no obligation chat about how you can quickly, easily and painlessly switch accountant to get you back on track for 2021.

 

Get in touch with us

 

 

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