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The three financial habits of successful business people

The three financial habits of successful business people

How to practice the habits of money in, money out and money forecasting.

BY Business Chicks, 4 min READ
 

This summary has been prepared by Business Chicks based on Jen Waterson’s Masterclass, thanks to our friends at AustralianSuper

Almost every money problem or crisis is made harder or easier depending on how well you have been managing your money. In a recent Masterclass Online, money expert Jen Waterson from Simply Smarter Numbers shared shared expert advice on how to make the very real shift from flying blind to having complete visibility and control over your money.

In life and in business, it sometimes feels as if we experience a seemingly never-ending cycle of problems and crisis. By practicing the three habits of successful business people, Jen believes you can navigate these problems before they have a negative impact on your life.

Money in – managing your cash inflow

Jen suggested business owners refine their business model. Identify your low profit, low cashflow work, and put these on the back burner. Focus your efforts on the products that are giving you the highest returns and profit margins.

Consider revising your payment terms to get cash in faster.

Utilise technology for immediate invoicing.

Be relentless with your debtors to get the money in as quickly as possible.

Money out – managing your cash outflows

When things are going well, we tend to get lazy. Review and question every outgoing in your bank transaction list. We all know where our cash weaknesses are, so can you trim the fat in these areas?

Review and question every line in your profit and loss statement. From subscriptions to unproductive teams members, cash leakages can be found anywhere and each line in your profit and loss deserves scrutiny. Consider whether cutting this expense will cut your productivity or put you at risk. What impact will it have on you in the long term?

Money forecasting – plan to get cashflow fit with the early warning cashflow system

A cash flow planning provides clarity, visibility and control.

  • It acts as an early warning system, highlighting potential problems before they become a problem
  • Allows for better decision making
  • Results in less cash related stress
  • Allows you to take advantage of opportunities
  • Offers clarity for you to get clear on where your money is coming from and where it’s going

A weekly cashflow planner is a great way to ease into cashflow planning for those feeling overwhelmed by the concept. It picks up mid-month cashflow issues that monthly planning might miss, and gives you the chance to get intimate with your cashflow. Looking at it for short bursts every week keeps it front of mind.

 

As Australia’s largest super fund, and with a history of strong long-term performance, AustralianSuper is committed to helping members achieve their best possible retirement outcome. AustralianSuper can help you with small, simple steps that could make a big difference to your financial future and set you up for the retirement that’s right for you.  

The views expressed in this article are those of Business Chicks’ guest presenter, Jen Waterson, as at the date of publication, and not AustralianSuper. The article provides general information and should not be considered as financial product advice. Please seek professional advice that is appropriate to your own business and personal circumstance.

 
 
 
 
 
 
 

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