When I talk to business owners I often hear this "I'm my business worst enemy". What is clear to me is that this business owner needs a different way to break down their business. Here I list seven common setbacks and how to address each of these. Implement at least one of these tips and I promise you will stop being your business worst enemy.
Setback 1: You didn't set funds aside to pay the government and you don't have an emergency fund..
Solution: Open a savings account. Add another account to your business account line-up and preset a transfer amount on at least a monthly basis. Review your preset transfer amount on a quarterly basis and adjust accordingly.
Setback 2: You stress regularly about meeting payment for your monthly expenses.
Solution: Know your monthly overhead amount, become acquainted with key dates. Grab your profit and loss report and look for the expense section, identify expenses that are recurring, While you are at it, question if these are required. You can't plan without it. Know what the monthly minimum amount your business needs to survive.
Setback 3: You feel pressured to make a "financial or work concession to your client due to an unforeseen situation
Solution: Before you make any decisions, consult your well-drafted contract. Whenever possible, do not break your own contract! May this be a reminder to take your time and not agree to anything under pressure. Take your time and make sure your project's margins are as healthy as they can be before giving away money, time or materials.
Setback 4: Not sure how your will repay the CEBA Loan you received during 2020 or 2021.
Solution: At the end of 2023 businesses will be required to pay the CEBA loan back. Budget for this repayment. Add another savings account.
Setback 5: Your business brings in healthy revenues (projects) but you are concerned about your business profit margins (income after expenses) or issues regarding cash flow.
Solution: .Decide how you are going to measure your business success this 2023. Start with a new quarterly measure. For example: gather the numbers to know how profitable a specific project is, or how much you have paid in outstanding debt. Improve your cash flow confidence - read more here
Setback 6: Your business counts with an amazing team and you worry about retention.
Solution 6: Reward and retain your team member in ways that matter to them. To read our top six tips click here.
Setback 7: Your business bookkeeping is not prepared on a regular basis
Solution 7: Ensure you get a professional bookkeeper to get your books up-to-date. Not sure what the difference is between a bookkeeper and an accountant?
Listen to Etel Igreda CPA in a podcast episode of Resilient By Design with Rebecca Hay about this topic - click here
I hope you implement at least one of these solutions in 2023 and stop being your business worst enemy. If you want to implement more than one solution or you need help we'd be happy to help. Contact us