Last time we looked at making a Financial Plan and how you should spend your money.
A vital part of any such weekly/monthly decision making process on how to spend money, is in fact a prior step, which is:
Planning your income for that week/month!
What jobs do you have ongoing that you can finish? Check them out: what needs to happen for you to finish them and get paid by your customer?
What other jobs are in the pipeline that you can do that week/month? How much are they worth?
For all those jobs, how much is your projected income for the coming week/month? What needs to happen in order for you to complete them? What supplies do you need for them? What manpower do you need for them and how much is it going to cost?
Then, work out how you are going to get more customers/jobs. How much income will you need that week/month? What production and how many customers does that entail? What marketing do you need to do and how much is it going to cost? What advertising are you going to do and how much is that going to cost?
And don’t forget Public Relations: this is the promotion of your company, making known all the good work that you are doing. What are you going to do with this, and how much is that going to cost?
What about your sales people? How much are they going to cost to create the number of customers you now know you will need?
All the answers to these questions are vital data that you will need for your financial planning for the week/month. Which leads me to the key datum about financial planning:
YOU NEED TO PLAN YOUR FINANCES IN SUCH A WAY AS TO INCREASE YOUR INCOME!
Spending your hard-earned money on silly things that you do not necessarily need to make more income will just drain your company of much needed money. Each allocation you make, have a think about how it will help you make more money. If you do this for a while, you will become more aware of what is a necessary expenditure, and what is just a waste of money.
And don’t forget to set aside some money to award your staff for all their hard work. After all, your staff are key to your company’s success, and investing in your staff will come back hundredfold to you! Awarding them when the company increases it’s reach, production and income, is definitely worth spending the money. Why not organise a pizza and movie night for example to thank your staff after a particularly trying but successful week/month? Your staff will appreciate the validation, and will be more willing to help you achieve the next milestone!
Give it a try! Contact me if you need any help, or have questions.
As always, keep it simple and… Flourish and Prosper 🙂
For courses available on these topics and from which I learnt the management technology I use in my business, please contact the Hubbard College of Administration at http://www.hubbardcollege.org