You’ve worked hard at getting known, crafting fabulous content, developing your brand.
Then along comes that incredible opportunity you’ve been waiting for.
The question is, are you in a good enough financial situation to be able to take that opportunity now it’s arrived? The money in your business must work for you to enable you to take advantage of opportunities.
Ask yourself, could you take time away from your business, have fewer clients if necessary and invest in the costs needed to take your business to the next level?
Good Money Management + Opportunity = Success
1. Cash Flow Is Queen
Cash flow is whether you have enough money to pay your bills. Fabulous opportunities usually mean extra expenses. Do you have the spare cash in your business to pay these expenses?
I was delighted to be invited to speak at blogging conference Blognix. My advance expenses have been accommodation and travel. If I hadn’t had the cash flow to pay those expenses, I would have missed out on speaking at one of the key conferences for my target market.
2. Savings Unlock Doors
Very special opportunities may arrive with very special costs.
Are you a writer? Imagine you open your email one morning and a New York publisher is interested in offering you a book deal. The only snag is they want to meet you at your offices in NYC. Do you have the finances available to go?
This is when savings kick in.
Business savings are essential for lots of good, sensible reasons. One of them is when life offers you an opportunity that will rock your world, you can grab it with both hands and go!
And when you’re an international best-selling author, remember me!
3. Know What You Spend
You already know cash flow is important. A key part of good cash flow is only spending money on what matters.
For your expenses, know why you’re spending the money and whether it’s part of your plans for your business. It’s ok to review your costs every year or 6 months but please do it.
Spending money that you don’t get value from makes it harder to keep a good cash flow and gets in the way of you taking that opportunity.
4. Know Your Profits v Your Profits For Tax
Profits are what make you a business.
Even if you make a loss, if you’re doing it to pay the bills then you’re in it for the profit. A lot of women in business don’t realise there is a difference between their profits and their profits for tax and why it matters.
I explained this to my client Diane. Her overall business profits is all her business income minus all her expenditure. Her profits for tax are higher (meaning more tax due) because unfortunately the costs of the fabulous dark chocolate she nibbles while working on-the-road aren’t tax-deductible.
The reason this matters is because unless you have control of your total profits, costs that aren’t tax-deductible can be a lot higher than you expect. That hits the money you have available for opportunities, so awareness is key.
5. Have A Plan
You’ll have noticed a lot depends on planning. Unless you want to, you don’t need to have an official planning session. 10 minutes of quiet time spent reviewing your business finances and records can go a long way.
Do take the time to plan and ensure your business is in that great place for an opportunity. 5 ways, 5 opportunities to maximise the benefit for that big opportunity coming your way.
You’ve worked hard for it, so don’t allow chaotic money management to get in the way of your fabulousness.
What steps have you taken to ensure your finances support you maximising your opportunities?