Business
Finance
Financial Management
Financial Planning
Small Business
Business Planning
Small Business Advice
15 financial rules of thumb will help your business:
• earn more
• spend less
• make more money
• earn more
• spend less
• make more money
• Hold 3-6 months in emergency funds
You never know when trouble is coming.
Without a cushion, you have to make less-than-ideal decisions that hurt the long-term viability of the business.
You never know when trouble is coming.
Without a cushion, you have to make less-than-ideal decisions that hurt the long-term viability of the business.
• Ask: Is it necessary?
Too many initiatives get started and money gets spent because someone wants to do something.
Tie big expenses to your goals and desired outcomes before taking the dive.
Too many initiatives get started and money gets spent because someone wants to do something.
Tie big expenses to your goals and desired outcomes before taking the dive.
• Translate time saved to dollars.
Software and other tools are expensive, but if they:
▸ save you time
▸ reduce who you need to hire
they’re a no-brainer.
Do the analysis.
Software and other tools are expensive, but if they:
▸ save you time
▸ reduce who you need to hire
they’re a no-brainer.
Do the analysis.
• Create a budget and reference it regularly.
A budget forces you to think deeply about your plans.
Without it, things will get missed and surprises will happen.
Sure they still happen with a budget, but they’re less frequent.
A budget forces you to think deeply about your plans.
Without it, things will get missed and surprises will happen.
Sure they still happen with a budget, but they’re less frequent.
• Invest in your best employees
Hiring new employees is expensive and your return on a great employee is immeasurable.
Invest in the best and treat them better than they could imagine.
Hiring new employees is expensive and your return on a great employee is immeasurable.
Invest in the best and treat them better than they could imagine.
• Never do handshake deals
I love trust. But always trust and verify.
Contracts just confirm what you talked about in person.
Confirmation keeps the relationship on solid ground.
I love trust. But always trust and verify.
Contracts just confirm what you talked about in person.
Confirmation keeps the relationship on solid ground.
• Going deep with one product line is better than wide with 5.
Fractionalized attention is the same as no attention at all.
Focus on mastering one new initiative before moving on to the next.
Fractionalized attention is the same as no attention at all.
Focus on mastering one new initiative before moving on to the next.
• Always keep your personal money and business money separate.
When funds are mixed, it becomes almost impossible to determine how the business is actually doing.
This slows down your ability to identify crises and ultimately hurts your likelihood of success.
When funds are mixed, it becomes almost impossible to determine how the business is actually doing.
This slows down your ability to identify crises and ultimately hurts your likelihood of success.
• Cash flow is the most important metric in the business
Cash flow is the lifeblood of business. Understand:
▸ where it’s going out
▸ when it’s coming in
▸ how it flows inside the company
Cash flow is the lifeblood of business. Understand:
▸ where it’s going out
▸ when it’s coming in
▸ how it flows inside the company
• Ask: Is it a distraction from my goals?
It’s easy to get distracted by a shiny new initiative or project.
But if it pulls you away from your ultimate goal, it’s hurting your business.
It’s easy to get distracted by a shiny new initiative or project.
But if it pulls you away from your ultimate goal, it’s hurting your business.
• Value long-term benefits over short-term benefits
Chasing short-term results is a never-ending cycle.
Chasing long-term results allows you to focus on creating even more value.
Chasing short-term results is a never-ending cycle.
Chasing long-term results allows you to focus on creating even more value.
• Create guidelines for taking out debt
Understand your funding options before you need them.
Create rules for what you will and won’t do so emotion doesn’t drive your decisions.
Understand your funding options before you need them.
Create rules for what you will and won’t do so emotion doesn’t drive your decisions.
• Always take your time when hiring.
It’s expensive to hire and train, so you must hire the right people.
Hire the wrong person a few times and you’re costing yourself more time and money than if you took the time upfront to hire the right one.
It’s expensive to hire and train, so you must hire the right people.
Hire the wrong person a few times and you’re costing yourself more time and money than if you took the time upfront to hire the right one.
• Weekly review a financial dashboard of your 5-7 most important metrics.
Too many numbers will leave you swimming, but the wrong ones will leave you blind.
Identify your key metrics then track them regularly.
Too many numbers will leave you swimming, but the wrong ones will leave you blind.
Identify your key metrics then track them regularly.
• Personally understand your financial statements
You can’t offload understanding of your financial statements.
To better understand financials, I put a resource together for you: doc.clickup.com
You can’t offload understanding of your financial statements.
To better understand financials, I put a resource together for you: doc.clickup.com
I talk about this in my latest newsletter, which goes out in a few hours.
Subscribe here: kurtishanni.com
Subscribe here: kurtishanni.com
Thanks for reading!
If you enjoyed this thread, I’d appreciate it if you’d follow me (@KurtisHanni) and RT the first tweet:
If you enjoyed this thread, I’d appreciate it if you’d follow me (@KurtisHanni) and RT the first tweet:
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