Hi! Welcome back to another episode of The Female Empowered Podcast. The topic for this week is something that I believe people don’t really talk about much in the small business world. I also think many business owners don’t understand this especially if they don’t come from a business background.
The topic is how to never run out of money, which are basically cash flow strategies for your small business.
Learn about these strategies so your business thrives instead of going out of business!
Let’s discuss:
- Introduction to the topic
- The number one reason businesses go out of business – They don’t have enough cash
- My own experience of putting out more cash than getting more cash in
- Do not use your personal bank account to never run out of money for your business
- S Corporation vs. Sole Proprietor and how it differs in paying yourself
- The importance of speaking to a Tax Adviser
- What should happen when someone pays you money
- Why you need to figure out your monthly operating expenses and how to compute it
- The other accounts I advise small business owners to have
- What I recommend you do if you get three months’ worth of operating expenses in your profit account
- Why you want to keep moving money out of your operating account
- An example of computing your monthly and annual revenue, overhead, additional expenses, your salary, taxes and profit so you don’t run out of cash
- Think about how much you want to put away, how much you want to save, and how much you want to budget for then plan accordingly
- There is power and strength in numbers
If you have other questions or if you found anything confusing in this episode, shoot me a DM on Instagram!
Looking for advice and resources to help you market and grow your clinic or client based business? Visit my website or follow me on Instagram!
Links mentioned in this episode:
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Interested in being a guest on a future Female Friday episode? Email me at [email protected]!