If you are a client of Joe Lavoie, you understand the importance of keeping your books in order so your business can stay afloat. At times you may get off course in your business and face a financial hardship. If you find yourself in that situation, here are 4 tips you can work on:
1. Calculate how long money will last
If you feel that in 60 days you are going to run out of cash, consider short term loans. These can include bank loans, family and friends or even credit cards. You may also want to consider business loans from Kabbage, Fundera or Paypal Working Capital.
2. Review sales, cost of sales, and expenses
- Take a deep look of where all of your sales are coming from to see where you may be declining
- See how much sales are costing you. This could be in your marketing plan or maybe your main supplier is overcharging for their services. Try negotiating for a lower price if possible or look elsewhere
- Run expense reports monthly as your % of revenue compared to industry averages. Also run them annually and compare them to previous years
3. Strategic planning
Now that you have a better understanding of your sales and expenses, you can now focus on planning for the future. Determine where to start first(Decrease Expenses, Increase Sales, Decrease COS) and then:
4. Execute and measure success
Best way to do this is by focusing on two areas at once. Set realistic goals for yourself and see how successful you are at executing your goals.
If you need assistance you can always Contact Joe Lavoie to get your books in order!