In business, as in life, there are 2 key financial strategies if your profit levels are not on target – spend less and make more.
Completing a cash flow forecast to use as a management tool is powerful. In other words create a monthly cash flow projection, and then track the actual expenses and revenues, in comparison to what you projected. By doing this dilegently, every month, you will be able to stay on top of the financial aspects of your business and make adjustments quickly.
Most new entrepreneurs don’t monitor their financial situation and therefore don’t even know when they are in trouble and can’t tweak each month because they cannot change what happened in the past, we can only adjust the future. This is what management is all about. Correcting the course forward!