Money On Your Mind: Why It Pays To Focus On The Figures In Business

If you’re a business owner, there’s every chance that you have a broad set of skills. You may be an incredibly creative person, you might be a strong leader, or you may have expertise in sales. The key to business success lies not only in having a brilliant idea or being able to lead a team, but also in being able to keep the company afloat. To do this, you need to ensure that you balance the books and start to generate profits. It’s no good having groundbreaking ideas and fantastic leadership skills if you take your eye off the ball when it comes to the figures. If you’re preparing to launch a new business or your finances aren’t quite as healthy as they could be, this guide should come in useful.

How much are you spending and could you save more?
Making waves in business is not all about how much money you take in. If you’ve ever watched The Apprentice, you’ll know all too well that success boils down to the difference between your income and your expenditure. It’s all about margins and running your business as efficiently and cost-effectively as possible. If sales are booming, but you’re still not making a profit, it’s time to look at how much you’re spending and where you could make savings. Consider staffing levels and how much you pay for materials and equipment. Could you hire or rent equipment rather than having to invest in the latest technology or machinery? Are you spending too much on paper or ink? It’s a really good idea to sit down and analyse exactly where your money is going on a monthly basis. Using audits, invoices and itemised bills, you can keep track of spending. If you’re not familiar with this way of working, you’ll find print audits explained online. Once you know where your money is going, you can start to try and figure out ways of making savings. Could you spend less on agency staff or freelancers by hiring a permanent team member or could you negotiate a better price on bulk buy items you use on a daily basis?

Improving your organisational skills
Running a business requires you to juggle a whole host of different tasks. If you’re focused on drawing up an incredible marketing campaign or recruiting the best members of staff, the numbers may go out of the window for a while. There may be times when you don’t have a minute to file an invoice or update your records, but don’t lose sight of the importance of being organised when it comes to managing your money. If you find that you don’t have time for accounting, and you’re falling behind with taking or making payments, consider giving the job of managing the accounts to somebody else. You could work with an external firm or add to your team.

If you own a company, your priority should always be to make a profit. Even if you don’t have designs on being a millionaire, it’s essential to make sure that your business is financially viable. Keep your eye on the ball, get expert help if you’re falling behind or you’re unsure how to make your business more efficient, and ensure you understand where your money goes each month.