Scalability

How to Get a Great Night’s Sleep with Good Cash Management?

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Cash is probably the number one cause of stress, worry, and anxiety for smaller business owners, which is natural when cash dictates the success or failure of any smaller business. Studies by the ANZ bank shows that up to 82% of small businesses fail because of cashflow problems. Some smaller business owners focus on budgets, which is essential, but it is only half the picture the other half is a clear projection of your cash flow. Managing your cash flow gives you a useful estimate of where your business will stand from a liquidity point of view into the future.

The ability to analyze your profit and loss statement, identify trends, and interpret what these tell you about your business is important. And you need to put that information into a useable form with a good cash flow forecast.

We teach some of these critical financial tactics in our Forecasting Your Business Webinar. And it comes with a free forecasting template that you can use for your business!

Relieve your mind from the anxieties of the unknown, fly by the seat of your pants style business management and join us here.

Why is it important to manage your cashflow efficiently?

It helps you prepare. The goal of cash flow management is to foresee upcoming financial difficulties. Identifying when finances are going to be tight will allow you to plan where and how to allocate your

keat ngHow to Get a Great Night’s Sleep with Good Cash Management?
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3 Things You Should Consider when Pivoting your Business

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The disruption of business has forced companies to reevaluate and made pivoting some businesses necessary to survive. Don’t be scared! It might be the opportunity you have been waiting for to transform your business.

When pivoting your business, there are three aspects of the business model to consider: value proposition, value network, and target customers.

The value proposition is the value that your product provides

  • Fulfil needs and create solutions. During a crisis, the needs of people change. It is then crucial to spot these unmet needs and to address them. A clear idea of the business’s strengths and recognition of the industry’s weaknesses is empirical. 
  • Use existing assets to create new value. Streamline assets to create new value that is not traditionally offered by the company, but is in high demand. An example is housekeeping services specializing in sanitation. 

Value Network is how you deliver the value of your product.

  • Find new ways to deliver your value. The rise in popularity of platforms like Zoom and Google Classrooms is because of this. As people are encouraged to quarantine, businesses that traditionally meet face to face with their customers have gone online instead. 
  • Connect and collaborate. Collaborate with players in the industry to create a new value that is only achievable when working together. 
  • Re-purpose assets. Re-imagine existing assets to produce new products. An example of this is how a liquor manufacturer can shift from producing liquor to producing disinfectants and sanitizers now.
  • Find novel ways to get paid. Explore different payment modes and terms

Target Customers are the people who benefit from your product

  • Find new clients. Explore a different demographic of target customers 
  • Collaborate with businesses in the target locale. Collaborate with other businesses to create a product. An example is when a trucking service collaborates with produce suppliers to create a mobile grocery. 

Pivoting your business is all about finding the right aspect to pivot from and coming up with the most logical, tangible, yet unconventional idea. Its focus is on saving the business or allowing the transition to a new business model while using existing assets. A dynamic and evolving approach is ideal. 

 

 

 

Kevin Sato3 Things You Should Consider when Pivoting your Business
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