cash flow planning Archives | Numbers Knowhow

Social Enterprise Management For Success

Mahmood Reza — Fri, 10 Nov 2023 11:38:24 +0000

Social enterprise management is no different than managing any other for-profit business – at least in some ways. However, managing a social enterprise has additional challenges that aren’t found in traditional companies. Here are just five aspects to consider. Key aspects of social enterprise management Social enterprise management is all about balancing potentially competing priorities. A social enterprise must first make money before it can succeed in its social vision and mission. These two ends of the seesaw could make managing the organisation more difficult than a business with profit generation for shareholders as its focus. 1. Mission and values The overriding mission of a social enterprise is usually to tackle a social or community problem. It could be helping people who are homeless to get warm clothing and a hot meal. It might be providing employment for young offenders or perhaps even have an environmental angle such as creating local recycling opportunities. Whatever the mission, you’ll need to align it with your organisation’s financial and business strategy because one can’t happen without the other. Being clear on your mission and values helps stakeholders, including potential investors, employees, customers and suppliers to understand why you might operate differently than […]

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Cash Flow Mastery For Business Growth

Mahmood Reza — Fri, 19 May 2023 09:13:01 +0000

Cash flow or fail! Because money talks. And it is especially talkative when you don’t have any, nagging money worries that keep people up all night and worried all day. Most of us have been broke at some point in our lives. Most people will have had to adopt certain strategies or habits to ensure they get their finances back on track. And that is without us even considering the complex landscape of the business world. Cash flow – a brief overview Cash flow is the money that flows in and out of a business over a given period of time. It is important because it allows you to stay in business. How does it do that? Money coming is used for many purposes. You use it to pay your bills, salaries, rent, etc. It also allows for catering to unexpected expenses such as equipment failure, or natural disasters. Another thing that it is vital in is growth investments. Without cash flow, your business may miss out on investment opportunities, preventing it from reaching its targets. A positive cash flow allows a business to operate smoothly, invest in growth opportunities, and stay resilient when unexpected challenges arise. You need […]

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Gross Profit & Your Business

Mahmood Reza — Mon, 17 Apr 2023 07:19:17 +0000

Knowing your gross profit is one of the most important steps to understanding the health of your business. Gross profit is the amount of money a company makes after subtracting the cost of goods sold from total revenue. In this blog, we are going to look at what gross profit means for your business. Your business journey map must have profit as a destination point. When you set your numbers dial to profit, you’ll be looking at gross and net profit. In the world of numbers, gross does not mean unpleasant or disgusting – though making a rubbish gross profit is not good. What does gross profit mean for your business? Firstly, let us take a closer look at what we are talking about. And the best way to go about it is to illustrate using an example. So, let’s imagine that Govan sells second-hand trainers online at £100 per pair. Now, if he sells twenty of those, he makes £2,000 in sales. Congrats to Govan, but that’s not his profit. He needs to buy and clean those trainers before selling them. The costs are £40 a pair. This means that Govan makes £60 profit for each pair he […]

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How To Judge Your Financial Performance

Mahmood Reza — Tue, 11 Apr 2023 08:59:07 +0000

How do you assess financial performance? It’s not that straightforward, isn’t it? Knowing how to judge your financial performance can be tricky. It’s because many factors come into play. Plus, it’s not always easy to know where you stand. You can get a good idea of how you’re doing if you turn to your numbers – more specifically, your income and expenses. Take a careful look at them, and it should be much clearer where your business is at the given time. In the words of Dietrich Bonhoeffer, “Action springs not from thought, but from a readiness for responsibility.” So, to be able to lead your company to a brighter tomorrow, you need to be informed about the facts, take responsibility for the current situation and plan away based on reasonable data. Care for some tips to get you started? Read on to learn more. Know your income and expenses If you’re running your own business, it’s important to keep on top of your financial performance so you can make sure you’re making a profit. But how do you know if you’re doing well or not? Here are a few tips on how to judge your financial performance. Regardless […]

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Why Is Cash Flow Planning For Business Important?

Mahmood Reza — Thu, 07 Jul 2022 21:46:27 +0000

Cash flow forecasts or cash flow planning for startup businesses, for example, has to do with estimating or forecasting your likely future sales and expenses. But why is cash flow for business important? Well, cash flow planning, no matter what kind of business you’re running, is an absolutely vital business tool as it indicates whether you have enough cash to sustain your business and grow it. Even a simple cash flow forecast template in Excel can easily show whether more cash is going out of the business than coming into it. Why Is Cash Flow Planning for Business important? Using the example above, a cash flow forecast allows businesses to track the estimated or expected cash movements over a specific timeframe in the future. However, it pays to understand that a business’s profit at any given month end is not a true reflection of how much money is coming into it as revenue. How do you get a proper cash flow forecast. Well, use paper, spreadsheet or have your accountant it for you!. Using Numbers Know How makes it possible to estimate the amount of ‘money in hand’ you have at any moment in time. Similarly, if you take into […]

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