10 Finance Must Haves To Grow Your Business

Bizcamp 200910 finance must haves to grow your business9

Jeroen Meens, Cynexwww.cynex.com

Monday 26 October 2009


Think of bees as money. Do you wake up every morning with an empty net to catch bees? Or do you wake up every morning in a garden that attracts many bees?


Here are my business ventures. Today, with Cynex, our business is helping you grow yours. We manage your bookkeeping, tax and accounting and you get all the coaching, expertise and experience included.

Knowing yourself is the beginning of all wisdom

- Aristotle

“”


Where do you want to go?

Who are you?



You need a goal to score


How will the business look like or garden look like?

1. know your ideal clientand adjust your cash planning on getting them

bees?garden?


PICTURE THE CUSTOMER FIRST, then design your gardenNOT THE BEST PAYING CUSTOMER, BUT THE BEST CUSTOMER

time

money

€ 3.000

finance or not?


If your burn rate is 1000 a month and getting a customer takes 3 months, then you need to be able to find 3000 euros. If you need to finance that, you need to see if the interest your paying is worth what you’re getting from your customer.

2. know your break-even


Not knowing your break even is not knowing how your business is doing.

!xed

revenue

loss

variable

total

profit

time

money


See if any investments you make, make sense.

3. paying taxes is cheaperthan trying to avoid to pay taxes


Focus on profit first. You need it when dealing with a bank or an investor. Profit gives you oxygen and puts you in the driver’s seat instead of the other way around. Taxes are a short term cost for long term ROI.

tax = short term costto create ROI in the long term


It’s what investors or banks need to give you money. Of course it does not have to be out of proportion, but some is important.

25K Profit= 100K investment

= 1 year time


With 25K profit you can get 100K loan from the bank and have a year time to make a return on investment

Bank

Venture Capital

Subsidies

Own Cash Flow

Pro!t

Private

4.


capital: pro’s and con’s

5. Investment ≠ Cost


Saving taxes by making costs at the end of the year is not the same thing as investing

ceci n’est pas une investissement.


In you bookkeeping it says investment, but in reality it is profit. Once payed off, value has decreased; an investment should have increased.

€ €

6. Cash is KingMonday 26 October 2009

Car is payed off, no value left and no cash in business. Collect your bills, negotiate payment terms

6a. Emotional Flow > Cash #ow


focus on what you do best, get the right people to surround you. know what you do at all times.


Cash = Oxygen.

7. Grow = Profit


Control

Pro!tGrow


Most want to go too fast. Control your business first, take the profit and get access to capital ti grow.

“Grow” without “Pro!t” = useless

“Grow” without “Control” = bankruptcy

“Pro!t” without “Control” = less pro!t


CapitalLiquidity

TrustControl

Pro!tGrow


It’s the same principles as our financial system and it’s what financers use to lend you money.

7. Have a planMonday 26 October 2009

Think long term

it’s not about the figuresit’s about the “how”


How did you get to those figures? How do you reach x amount in sales, etc.

Look in the mirrorand be honest to yourself

actualforecast


Did you meet target or not and act accordingly.

9.


Not knowing how you’re doing is like fast food. You don’t know what’s in it, you know it’s bad for you, but you keep eating it. And slowly you get out of shape and die. Same thing with business. Know what you do so re-think your accountant.

10 Finance Must Haves To Grow Your Business

Economy & Finance

Transcript of 10 Finance Must Haves To Grow Your Business