Episode 4: How to Measure The Health of Your Business
Today’s episode is all about how to determine and measure the health of your business. While we can look at our profit loss report to tell us what is going on, there are a lot more signs we can look for - like our cash flow, to really reveal the status of our business. I talk about how to ensure you have a positive cash flow, things you may be doing that impact your cash flow, and tips to ensure you maintain a positive cash flow.
In this episode, we cover:
The impact of a negative cashflow [1:46]
Paying for personal bills out of a business account [7:52]
Dealing with inconsistent income months and how clients pay you [10:00]
Maintain a minimum balance in your account [14:44]
Bill before services are rendered [17:04]
Revaluate your expenses and have a rainy day fund [20:04]
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Grab our FREE Business Expenses and Deductions guide!
Do you wonder why your bank account balance doesn't match your Profit & Loss? Maybe you had a great month and you're wondering where all your money is going.
This is due to cash flow. Your cash flow is the heart beat of your business and for a business to be healthy, you need to have a healthy cash flow.
I have created a FREE Cash Flow Projection Template so you can maximize your cash!
