artists | Numbers Knowhow https://numbersknowhow.co.uk/category/artists/ Cash flow and financial planning made easy Wed, 17 Jul 2024 17:44:26 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://numbersknowhow.co.uk/wp-content/uploads/2022/02/cropped-Favicon-Cog.png artists | Numbers Knowhow https://numbersknowhow.co.uk/category/artists/ 32 32 Navigating Cash Flow Challenges In The Arts: A Step-by-Step Guide https://numbersknowhow.co.uk/cash-flow-challenges/ Tue, 21 Nov 2023 09:13:34 +0000 https://numbersknowhow.co.uk/?p=13895   Arts and creative organisations may be at higher risk of running into cash flow challenges than other businesses. It’s common in the creative industry to be at the mercy of unpredictable and volatile income streams. Many creative businesses work on a project basis with little opportunity for retainer contracts which bring predictable and sustainable income each month. That’s why it’s even more important to stay on top of your business finances. Try  to identify cash flow challenges as early as possible. Here’s a step-by-step guide to managing financial and cash flow challenges: Assess your financial position Identify common cash flow issues Implement cash flow strategies Create a budget Create a ‘rainy-day’ fund Use financial tools Monitor and adjust Get expert support Assessing your financial position Before you can take steps to mitigate any cash flow challenges, you need to understand your current financial position. This means looking carefully at your profit & loss statement, your balance sheet and, crucially, your cash flow forecast. Identify your various income sources and revenue streams. You should know how much of your income comes from which clients and how those clients were sourced. Next, look at your fixed and variable expenses so you […]

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]]> Why A Business Must Make A Profit https://numbersknowhow.co.uk/why-a-business-must-make-a-profit/ Tue, 21 Feb 2023 10:33:27 +0000 https://numbersknowhow.co.uk/?p=11587   Making profit must be at the top of your business goals – ignore that at your peril. Firstly, I am going to tell you why making profit is vital for you and your business. Secondly, I will tell you how you go about making profit. But before we go into that, let’s think about another very important question: Why are you in business? We all have our reasons for being our own boss. It could be financial independence, being more in control, helping others, freedom and flexibility. Maybe it’s life circumstances, a change of scenery, grabbing opportunities – and making money! For myself, I went into business over 28 years ago, started from my own back bedroom, because I wanted more control. I wanted to help people, I wanted to make an impact on their lives, I wanted to have that independence, make my own decisions, and make money. Why a business must make a profit – overview Making a profit is vital for your business. It is the fuel that keeps it going and helps you to grow. Without a profit, your business will eventually fail. And if you’re not making enough of one, then it’s time to […]

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