One of the toughest aspects of being a business owner is planning for upcoming expenses when you are not in the habit of forecasting revenue and expenses. You may want to hire another employee, purchase new equipment, or expand the location of your business. Many of these expenses are necessary in order to grow your business, but how do you know if, or when, you can afford them?
The first step is to get into the habit of forecasting and budgeting your next 12 months, and then tracking your results to your plan. I use LivePlan and Cash Flow Tool to help with this and you could, too. With Cash Flow Tool you can plan for your future expenses.
As you run your business, you could use both of these apps to see whether you are ahead of – or behind – your plan. You will clearly see how your cash is doing, and what your cash flow is every month. As you review where you are, I can help you make the final call about whether you are ready to add the additional expense you have planned for.
Call me and let’s set up a meeting to review your “wish list” of major purchases. We will make sure we plan for them in your forecast and budget, and then we will set up some Milestones in LivePlan or Cash Flow Tool to track your numbers and make sure you are ready to take the next leap in your business.