Making Great Gin, Failing At Business?
So, you’ve perfected your gin (or whisky, or beer, or wine). It’s in a bottle, it’s selling! You may have even won an award or two.
Why is it then that you are the last to get paid if you get paid at all; and why do you spend so much time juggling cash, robbing Peter to pay Paul?
All Work and No Play
Running a business is hard and there is a lot to juggle. Cash always seems to be in short supply, suppliers are calling for payment and if you’re a new business some may even want cash in advance.
Maybe it feels like you always need more equipment to meet demand or improve how you operate. You need bottles, caps, labels otherwise you don’t have anything to sell, but wages and rent are due next week as well and so the juggling act continues.
You’re a good person and as a business owner, you don’t want to let your staff or suppliers down, but you’d like to be able to start paying your credit card off and maybe have a bit of a life outside work.
It’s frustrating and stressful. This definitely wasn’t part of the dream!
Time & Money
The fact is, If you’re not getting paid what you are worth, if you’re not getting a profit from your business then you don’t have a business, you have a hobby.
You deserve to be rewarded for everything you are investing. That doesn’t just mean the cash either! Every minute of your time that you invest into making your business a success, deserves to be rewarded.
If this isn’t happening, it might be the thing that is causing you to feel like a failure and find it hard to see the success. All that unrewarded time can make even the most experienced business owner resentful.
When you know how to manage your cash, how to understand your finances, what your margins really are and how much they need to be, then you can develop a business that will reward you for your work and reward you for your investment.
How can Refresh Accounting Help?
It’s true that there will be many things during the lifetime of your business that you simply can’t change and just have to deal with. That’s why it’s even more important to keep on top of all those things that you CAN have an effect on.
Control what you can control!!
To get you started, here are just three simple things Refresh Accounting can help you work on.
Implement Cash Management
Cash management is something that I regularly see business owners struggle with. Having just one bank account that pays all of your expenses and holds all your income can get confusing and messy!
I am a certified Profit First Professional and here at Refresh Accounting we’ve seen the Profit First method help countless businesses get clear on their position and find more financial freedom. You might also have heard of the Barefoot Investor, another method that also uses multiple accounts. Both of these methods help you set cash aside for very specific purposes so you can see at a glance what is going on with your money.
Either of these methods or a combination of both can give a lot of clarity to business owners and at Refresh Accounting we have the experience to get you started.
Breaking costs down is essential to understand where your money goes. Developing a framework that captures information so that you know exactly how much it costs for each item that you make is a great idea.
I won’t lie to you though, this can get complex and it can take a bit of work to make sure your figures are extremely accurate.
At Refresh Accounting though we have 15 years experience of doing exactly that for clients as a chartered accountant as well as 15 years working in manufacturing, inc. 7 years in the wine industry. We’re here with expert knowledge and we want to help you excel.
Calculate Business Size
Are you in a “growth stage”? Are you pouring everything straight back into the business to try and build?
If the answer is yes, I have one question for you! Why?!
Sometimes, business owners feel like they constantly need to grow and become bigger without really understanding what their end goal is. Refresh Accounting’s Business Size article and free calculators could go a long way towards helping you get clear on exactly how big your business should be to meet your needs. Find the completely free resources here!
Running a Business Made Easier
Whether you have worked in a business for a while, or whether you’re new to business having learnt how to distil, brew or make wine, very little of what you have been taught really gets you ready for the nitty gritty of running a business.
It was a shock to me what was really involved when I first started running businesses. If anything, running a business has become more complex with more regulations, not less, over the last 25 years and that’s despite simpler and more accessible accounting and other operating systems.
At Refresh Accounting we want to use our experience to help you succeed and take care of the nitty gritty for you!
So, now you’re in control of the things that you can control in your business (with Refresh Accounting’s help of course) you can start to build the next phase.
You understand how big (or small) your business needs to be and that, in turn, means that you can concentrate resources in the areas that are important. When you can do that, then you are on your way to a business that is permanently profitable and is geared to provide you with the cash and time rewards that your hard work deserves.
What are you waiting for? Book a call with Refresh Accounting today and start your journey to permanent profitability!