Ultimately it’s all about the money, getting sales in and reducing costs going out.
Here are some notes on how to manage your cashflow, and to decrease your spending on excessive expenses, at the same time building up your assets.
Remember, by bringing down your regular outgoings you can save more, and have more financial freedom. Regard your spending as an investment and you should be able to recession-proof yourself with these handy tips:
Make sales your priority
- Increase your marketing – by generating leads and sales
- Get your costs and prices right
- Compare yourself to what clients want to pay
- What your competitors are charging
- Train customers to learn your terms, ie: 14 or 28 days payment
- Take deposits
- Interim/milestone payments
- There is an online filing for claims which costs £80, only use for clients you don’t want to keep!
- Train your customers to pay promptly, by chasing promptly
Value your suppliers
- Reserve money to pay for suppliers promptly
- When times are tough, communicate
- Spread your money around if paying more than one
Get rid of costs you don’t need
- An obvious one, but reduce the tariff of your mobile phone, changing contract tariffs and plans can save a great deal of your monthly outgoings.
- Only think about keeping something on if your are getting a return on investment back on it, like regular web hosting.
- Check your direct debits, and cancel the ones you don’t need.
Personal Finance and Spending
There are three types of personal spending:
- Fixed – Mortgage, rent, phone bill
- Variable – Food, clothes, going out
- Occasional – Christmas, dentist, holidays
Why not try moving the fixed spending into a new current account? Then you will have better control of the other two spending types.
And finally plan and review your cashflow constantly.