Thriving in business can be a beautiful, fun and exciting experience. In an instant a crisis can rattle your confidence in staying afloat, and even at times bring on the financial pinch and struggles that each and every one of us have laid awake worrying about at some point in time. In business, no one is immune to this, some people are just a little more prepared and/or calm in the face of such struggles.
With the current onset of the Corona Virus and the possibility of a lock down upon us, we are getting email after email from clients asking a variety of questions. An interesting observation of our clients that have contacted us in these worrying times is that those that are most calm and have implemented strategies are those that have taken advantage of our education on being wealth conscious. Despite an uncertain future, they are still very positive, and ready to tackle struggles possibly coming their way, whether those struggles impact their business or personal life, or a combination of both.
So what are the 3 key factors safeguarding them from having to jump on the stress train as quickly as others, or at all.
They know their SURVIVAL (WHAT IF) NUMBERS
We know, we know, this sounds super boring.... but, there are a few specific numbers to know that make the world of difference, and are pretty easy to work out as a starting point.
The first one is, what does it cost to keep your doors open? We don’t mean buzzing with staff and clientele, we mean just literally keeping the lights on, the rent up to date and all your agreed payments paid. Once you know that number, you know the minimum you need for your worst-case scenario, making it a lot easier to plan.
Obviously there are wages to be paid and tax to be put away, however, for now, by knowing your survival number you can implement a plan. Now, for some businesses your survival number will include wages and other vital costs, and that’s ok, but you want your bare minimum number as a starting point.
What or who MAKES THEM MONEY
Now this is an interesting one, because everything/one in business that you charge makes you money, right? Yes, and no. Generally, in business we want to earn the most profit possible, BUT, in times of stress, chaos and possible TP shortages (sorry had to be done) we want the most profit in for the least amount of effort. Every business has a service/product that makes them the most amount of money, they also have a service/product that has the highest profit margin. These two products may or may not be the same service/product, and they may or may not be your highest costing service/product. So if you haven’t already work out your profit margins on all your services/products. This will give you a much clearer picture of how to keep the most cashflow AND profit coming through your business, and that, especially in tricky times, is key.
Cashflow AND money left over for planning, saving and strategy are the true keys to business ease in all climates.
They know WHAT’S COMING
Our wealth educated clients can tell you even IF they don’t make another sales call/booking all month, or even next month what money will be coming in, and what we have to play with. Now, hopefully you won’t need to resort to this, however, it’s a great number to know.
MAKES MONEY – SURVIVAL NUMBERS = WHAT’S COMING
With a fair amount of accuracy plan, and pivot your plan if required. Know you regular and future income. Reliable regular clients, subscriptions, pre-booking deposits, sales, know your business, know your industry and know your sales/income cycles. Compare them to the same time last year. Regularly check what is working and what isn’t marketing, sales & profit wise
Bookkeeping and knowing your numbers is an essential part of your business and assists in many other important aspects of your business.
Knowledge is power, power to put strategies in place built on fact not feeling.
Totally overwhelmed on how to get to this point. That is where we come in. An Angel is just a phone call away.
We would love to talk over your numbers with you, hear your goals, and work with you with to build a strategy for now, and into the future.
Pop on over to our booking link for a 30 min obligation free chat with our CEO.