Module 6 – Finance
Finance can be a boring subject, so I have tried to brighten it up a little by showing you the methods of doubling your profits, then doubling them again and again.
This may sound like an outlandish statement, but it isn’t. Doubling your profit is not hard when you know what to do.
In this module we will show you the profit growth tool and the five business growth variables. The multiplier effect is amazing. We will then show you how to grow each variable.
In business cash is king – no cash no business. We will show you how to complete a simple cash flow sheet using a step by step approach. Being able to predict your cash flow months ahead will give you confidence and stop you worrying about running out of money. If you do see a cash crisis in the future, you will have plenty of time to resolve it before you get there.
There is a part of the finance module that may be a little boring. It shows you how an accounting system works. However to have business acumen, you really do need to learn how business numbers work.
Running your business by simple numbers allows you to run a dashboard. You only need to know about four numbers:
- Gross Profit
- Net profit
Running your business with a dashboard makes it simple. You can be on the other side of the world and understand what is going on by just knowing these numbers and their trends
Simon Albert – PC Support Group
“Bob is a results driven asset to our business. We derive value far in excess of what we pay, recognising a clear return for our investment. I recommend Bob to any entrepreneurial business owner who is striving to reach stretch goals.
Business Finance Lessons
1.6.1 Introduction to Finance
Understanding finance and accounting reports is fundamental in business. Having and understanding of your business numbers, especially the ones concerning cash, are vital. No cash – no business. This workbook lays down the foundation for the rest of this finance module
1.6.2 Simple Financial Planning
You will learn about the four business control numbers to allow you to run your business, then how to use our web based business planning application, which will give you your simple financial business plan.
Not knowing where you are going is not a good way to run a business.
Having a road map to follow is a better way. Financial business planning is all about helping you to understand your business model, and the way you make money from what you do.
1.6.3 Financial System
Having a general understanding of the work of the accountant, what is involved and the results from it, is vital to business success. Once you understand the power of the accounting system for decision making, you will be more inclined to make sure your accounts are in order and have monthly management accounts prepared for you.
You will learn how to increase your profits
You need to learn this to know how to grow your profits. Once you have learnt how to double your profits, you can then double them again and again, because now you know how to.
1.6.5 Cash Flow
Running out of cash in business is not a good idea. Understanding cash flow and keeping your finger on the cash pulse is important.
Monitoring cash and having a four to six month look ahead in terms of cash flow will allow you to sleep at night, make the right decisions at the right time and if you can predict that you may need an injection of cash, gives you time to plan and negotiate the injection. Running out or being short of cash can be very stressful.
You are allowed to download the files and use them to help you grow your business. You are not allowed to use them to help others to grow their business making money from the process. If you are a business coach and would like to use the workbooks, I have a white version you can rebrand. We can negotiate the terms. The workbooks are copyright protected to Freedom Business Coaching Ltd. Just make contact.