Welcome to the third episode of the Back to Basics series. This series differs from our typical episodes as it offers a brief review of the various steps of the financial planning process.
In this episode, we’re focusing on cash flow. This is the most important aspect of your solopreneur business. Your business’s cash flow allows you to do what you need to do when you need to do it.
Learn why a healthy cash flow is such a crucial aspect of your solopreneur business and what you can do to improve your business’s cash flow.
You will want to hear this episode if you are interested in…
- What you can do if your cash flow is not so good [2:12]
- A story to understand how I deal with cash flow issues [7:55]
- Your call to action [9:44]
Your cash flow indicates the health of your business
One way to understand the health of your business is to take a look at your cash flow. When your cash flow is good, that generally means that business is good.
Has your cash flow recently increased? If so, why? Have your sales gone up? If so, should you make any adjustments to your retirement or savings contributions? Do you have debts that you could be paying off faster? Should you begin saving for a future purchase?
A healthy cash flow is vital to a robust solopreneur business.
What you can do to improve your cash flow
When the cash isn’t flowing chances are your expenses are too high or you aren’t bringing in enough revenues.
When your cash flow isn’t coming in the way you would like it’s time to evaluate the problem. Take some time to assess your accounts. Start with your business checking account. (If you don’t have one, go get one immediately–listen in to learn why you need one!)
As you dive into your checking account pay attention to where the money is going. Are there any expenses you can cut? Are you paying too much for software, utilities, or other expenses? Make sure to check your business credit card statements as well. If you use Quickbooks this is another place where you can evaluate your accounts.
In addition to cutting back expenses, you can also consider how to bring in additional income to improve your cash flow.
If you are looking for ideas on how to increase your revenues check out the rest of the episodes of Solopreneur Money. We have interviews with industry experts that can give you ideas on how to improve your solopreneur business.
Now it’s time to take action. Schedule some time for yourself to review your cash flow. As you do so make sure to look at every angle. Check your credit card statements, checking accounts, and Quick books. Then consider what you could do to improve your expenses, increase revenues and increase your cash flow. This is a great exercise to do once or twice a year to ensure that you are making the most of your income.
Connect With Gabe Nelson
- BOOK – The Solopreneur’s Money Manifesto by Gabe Nelson
- FREE Downloadable Resources at https://www.gabenelsonfinancial.com/resources/
- EMAIL: Gabe (at) GabeNelsonFinancial.com
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