Cash-flow is blood to any business. Without blood, nothing will function. Hence, it becomes essential to manage such an important element of a business. Finances are always backbone to your business structure, be it in any form, assets or working capital. If you wonder how to manage such an important element of your business or you do not have an efficient strategy in place, then you might want to consider business mentor Perth.
A business mentor or coach might want to get into the depth of your cash-flow cycle. A draft version of the process may be as follows:
• Understanding whether your business operation is seasonal, and if so, the patterns of working cycle. This might include going through previous data of your cash-flows and operating cycle as well as future predictions/expectations. What such an expert might be looking for is the activity in previous years, annual sales and what you might want to do in future: business expansion, more market segment, asset acquiring etc.
• Another aspect that a business coach might be looking at is the conversion period from capital to inventory and then liquidation of this inventory. Of course there is a probability of certain percent of error as no method can be 100 percent accurate. However, what you might get at the end will be a ‘close-enough’ estimate figure. This can assist you as a business entity in getting some in-depth know-how about your business operation cycle in terms of finances.
• Another job of a business mentor is to have at least one plan as backup, should something goes wrong. There is absolutely no point being complacent that nothing can go wrong. Every business is vulnerable to an extent, in some part of its structure. However, this never means you should worry too much about the ‘risk’ or ‘unseen’. Yet, it is good to be prepared. So, back to the point, a backup plan will allow you to understand that should something happen, from where and how much capital can you access. This kind of alternative capital can work as an emergency ‘first-aid kit’ in times of need.
• Once the information is in hands, it will be a little easier to scan the scope of improvement in your business model. The business mentor may then be able to calculate/predict if there is any risk (short/long-term) and how can they be managed to cause minimal/no damage.
Most importantly, budgeting, forecasting, sparse and surplus funds management becomes a smooth task with such knowledge. The business coach Perth gets required help to help you in return. Eventually, the whole idea is to manage the cash flow and in order to do so, such a strategy is fruitful in almost any kind of business. Deploying such a tactic is yet another task, as is finding a business coach who would be able to handle your requirements and then come up with a tailor-made management plan that can be incorporated into your business model. Hence,
it is always advisable that you should not compromise on the quality, when it comes down to taking your business ‘forward’. Seeking assistance from ‘experienced’ people will always take you closer to your goals.
One of our roles as Business Mentors Perth is to assist and advise you in running your business. As a Business Mentor in Perth I have worked with many small business owners over the last 20 years.
Through regular meeting, guidance and advice we will help you better understand how to build a successful business, make it profitable and run under management.