Lecturer: So, students, any takeaway from that last topic?
Student: Sir, 2025 is already shaping up to be a rocky season for our finances. A higher-than-expected US inflation, unstable consumer behaviour, and things happening on the global stage that are influencing business operations are quite unpredictable. So, managing your money is important especially for business owners.
Lecturer: I’m happy you mentioned managing your money. Our next topic takes a deeper dive into how to maintain a healthy cash flow this year, despite all the uncertainties that you pointed out.
- WHAT DOES THE DATA SAY? Does the bread on the shelf cost more or less than it did last year? I’m simply saying that looking at historical data can help to notice spending patterns and even predict future trends. Also, look at seasonal changes that could affect sales or expenses.
- HAVE YOU BEEN TRACKING THE MONEY? Remember to track your cash flow regularly. This allows you to make adjustments quickly before any problems come up.
- A CUSHION FOR YOUR CASH. You know sometimes we plan, and things still go wrong. So, having a cash flow buffer such as reserve funds can act as a financial safety net to ensure that your business doesn’t fall off when problems arise.
- ACTIVATE OPERATION EXPANSION. Sometimes relying on one source of income can be a risky move, especially for businesses that offer a single product. Think about ways to diversify your revenue streams such as expanding your product or service offerings or even promotions that incentivise customers during specific seasons.
Well, who better to tell you how to effectively manage your cash flow this year than a business that’s been around for over a century? Effective cash flow management is not just about managing your money, it’s about making sure your business is resilient and prepared for whatever comes its way in 2025. While today’s session ends here, after class lessons are available. To register your interest click here.
