The Momentic Self Employment Service …….enabling

Transcript:The Momentic Self Employment Service …….enabling:
The Momentic Self Employment Service …….enabling an enterprise culture with a social conscience Finance Ways of Working (WOW) 100% confidentiality No multi-tasking – be fully present Arrive on time and stay for the whole meeting Commit to asking questions, listening & being non-judgemental Sharing the air space Implement agreed actions (Do what you say you will do!) Feedback at the following session Complete all participant surveys at the end of each session Philosophy – “The knowledge is in the room, let’s learn from others and share” In the session we will cover: Common financial challenges for small businesses Barriers to cashflow Understanding Business Costs and key terms Identifying financial inefficiencies within your business Your pricing strategy Cash flow forecast development Outcome: You will have a starting point on what to research further and the confidence to create a 12-month Cash Flow for your Business that your Business Adviser will support you with Challenges for small businesses Unexpected expenses Poor credit control Cash flow Overstocking Underestimated costs Under-pricing What financial challenges do you face? Limited access to capital Cash flow management High operating costs Inadequate Financial Planning Limited financial expertise Debt Management Market competition Regulatory compliance costs Economic downturns Technology costs Scaling Operations Risk Management Root causes of cash flow problems Understand barriers Implement clear invoice and payment terms Offer discount for early payment Communicate! Examine seasonality and market trends Product diversification to appeal to broader market Market to address seasonality Partnerships and collaborations Excessive inventory or poor turnover Adopt a ‘Just in Time’ approach Regular inventory audits Supplier relationships Root causes of cash flow problems Review fixed and variable costs Reduce non-essential expenses Renegotiate with suppliers Establish an emergency fund Explore funding options and lines of credit 15 Task 1: Identify Financial Inefficiencies List all of your known business expenses Identify those you can reduce or eliminate Develop a plan to address financial inefficiencies A cash flow is the measure of your ability to pay bills on a regular basis, and attain money that is owed to you Lack of Cash Flow control and understanding is one of the main reasons small businesses fail A cash flow gives you an insight into your next year of trading and demonstrates you have an understanding AND control of your finances It sets clear targets for you to grow Helps you take a view of the business to make plans to grow/market/develop Identifies