All small businesses, but particularly craft-based businesses often struggle with cash flow. Learn to create a cash flow system with Profit First.
So often when we start our creative business venture we start out alone. We are the creative force behind the business, the chief cook and bottle washer, the lone ranger. And for a time, that is good. But as the business grows and becomes more successful, there is a shift. Time becomes more precious and you begin to worry about getting it all done.
Using a spreadsheet to input your cash flow you’ll be able to determine when to hold onto cash for upcoming expenses and when to make significant purchases without causing undue stress.
Not only do you need to make money (sales), you have to be able to do it while spending less than you earn (positive cash flow).
When anyone starts a new entrepreneurial venture, they generally believe they are starting a business. And by the general definition they are. But as time goes on, reality might say they have just created their own job.