It’s easy to look at the money coming into your business account and think you’ve got more available to spend than you actually do.
Hopefully, you are already putting aside the GST you have received into a separate account so that you have that ready to pay as part of your quarterly BAS.
One of the other really important things that, unfortunately, we see many business owners doing is not putting aside money from sales to purchase stock or “Cost of Goods”.
Every business has its slow season. Whether you are a retail shop that slows down trade during the summer season, a builder who battles wet weather delays or a service station that sees less trade during low tourist season, these quiet periods can put a strain on your cash flow and leave you in a panic if you haven’t planned ahead.
Running a business comes with risks, but being prepared can help you stay ahead of challenges before they become bigger problems.
Managing risk is about protecting your cash flow, your people and your hard work. Taking time to regularly review potential risks can help you make informed decisions and feel more confident about the future.
There are four critical risks areas and key questions that need to be addressed and reviewed regularly.
