Personal finances are typically top of mind for people during the festive season.
Christmas is often linked to a rise in household debt and "spend less, save more" is usually among the top three resolutions made (and broken) each year.
Business owners are often guilty of wearing too many hats and trying to ‘do it all’.
Sadly, the consequences of getting your financial obligations wrong can be devastating. I have seen various ‘mistakes’ throughout the year that have put clients and their businesses in crisis.
Business owners generally don’t reflect on their business’s performance or financial health until the end of the financial year – to their detriment.
Saving a financial health check until May or June leaves little time to implement any required changes to pricing, client base, services, packages or spending habits.
Analysing all aspects of your business over the holiday period may reveal that a product or service is, in fact, losing you money.
Think like your customers
The best way to review your business is take yourself out of the business and think like your customers. What do they want? What are they asking for? What are their problems that you are solving? Then, compare this to what you are actually offering. Christmas is a great time to review this as things tend to slow down and you can really work on your business, rather than in your business.
Running a financially healthy business takes time and planning. Becoming profitable rarely happens due to luck, accident or magic.
Avoid the Christmas cash flow crunch
You may be taking a break over the holidays, but unfortunately bills will keep rolling in!
You should already be planning January and February work now.
Having clients lined up, specials advertised and work flow planned two months in advance ensures your cash flow is regular.
You can then schedule jobs, time and rosters, manage your diary more effectively and reduce Christmas stress!
Lastly, having a trusted financial adviser can have immeasurable benefits for your business!