- Have a plan and vision: You need to know what you are doing, how you are doing it and why you are doing it? Also, who are you doing it with, what do you need in resources and how can you be helped? These questions have to be answered in a plan and it needs to be clear enough to be communicated to all people involved. What concerns do you have and what are your projections? Remember financial projections are just that projections, but they should strive to be accurate and on target. Connect them with everything else you do and have regular targets and measure points.
- Revenue – Every businesses life blood is cash flow. You want to be positive, one way is revenue. Up front you need to identify your revenue sources and where they will come from. Identify your pricing strategy, are you luxury, are you common goods or a commodity, or are you middle of the road. Know your customer and how they will react. Where are your direct revenue sources and indirect revenue sources coming from? What external issues are there than can affect revenue? Make sure you identify these things and come up again with a plan to balance out any negative situations.
- Expenses – Be reasonable with your expenses but do not constrain yourself to the point your expenses strangle growth of your business. At the same time try to manage it so debt does not strangle you either. Figure in growth and how expenses will change as you grow and be ready for that.
- Reserves – The backbone of a business, you need reserves whether it be for an emergency or a deal you can not pass on. What can you do to build reserves without sacrificing cash flow? It is not easy but a portion of every high check should go to a reserve account and you can move forward from there.
Rodney Mogen, is the president of solveurpuzzles, a business focused company. Helping financial advisors and insurance agents solve their case troubles and issues. Rodney is also a small business advisor focused on developing financial strategies for small business owners and helping them develop their own strategy and ideas to grow, sell, develop the way they want. He is focused on creating proper financial strategies for Advisors and business owners to assist them in their day to day duties by solving their financial puzzles. Rodney is also the Director of Financial Strategy for The Evans Group. Check out more information at www.solvurpuzzles.com and the financial strategy work for The Evans Group at www.financialselectservices.com.