Patricia Santayana’s Post

Reducing Financial Stress and Building Resilience: Why Cash Flow Management Matters Financial stress is a common reality for small business owners, but it doesn’t have to be. When cash flow isn’t effectively managed, it can create a cycle of uncertainty and limit a business’s ability to grow. Here’s how better cash flow management can reduce financial stress and build resilience for your business: Predictability Over Uncertainty One of the biggest stressors for small business owners is the unpredictability of finances. You may be profitable on paper, but if cash isn’t readily available when you need it, managing monthly expenses becomes challenging. Cash flow management gives you a clear picture of when money is coming in and when it’s going out, so you’re not constantly wondering if you can cover payroll or overhead. Preparing for the Unexpected Every business faces unexpected expenses or seasonal downturns. Without a plan, these surprises can quickly drain reserves and put a business at risk. Effective cash flow management helps create a buffer for these situations. By keeping tabs on cash inflows and outflows, you can set aside funds for emergencies or lean months, ensuring your business stays resilient even in unpredictable times. Building Confidence to Make Strategic Decisions When financial stress is high, it’s easy to feel stuck in “survival mode” rather than moving forward. Cash flow management not only reduces day-to-day stress but also gives you the confidence to make strategic decisions for the future. Whether it’s a calculated investment or a new growth opportunity, knowing where your cash stands allows you to make choices that support your business’s long-term goals. Is financial stress holding your business back? Let’s talk about how I can help you create a cash flow management plan that keeps your finances on track, minimizes stress, and sets your business up for resilience.

Maximising the Extra Hour: A Fresh Take on Business Recovery and Restructuring With the clocks going back this month, we’re all given an extra hour—time we rarely have. For businesses in recovery or restructuring, that extra hour is more than just a chance to sleep in; it’s a reminder that time, when used wisely, can make a world of difference. Here’s how to make the most of it—and how these lessons apply to your business long-term. 1. Pause and Reflect In the rush of managing financial issues and operational changes, it’s easy to lose sight of the bigger picture. Use the extra hour to step back and reflect. Ask yourself: Are our recovery efforts aligned with our goals? Have we addressed the root causes of our challenges? Taking time to reflect can provide clarity and new insights. 2. Review Your Financial Position A financial review is often postponed in busy times. Use this hour to reassess your cash flow projections, debt obligations, or relationships with creditors. Identifying financial blind spots early can prevent bigger issues later. 3. Check in With Your Team During restructuring, employees can feel disconnected or uncertain. Take the extra time to reconnect with your team, listen to their concerns, and reinforce the company’s vision. Engaged employees are more productive and adaptive during periods of change. 4. Reevaluate Strategic Decisions Are the decisions made under pressure still working? Use this hour to reconsider whether the choices you made are delivering results. Small adjustments now can avoid costly missteps later. 5. Plan for the Future Recovery is about stabilizing, but long-term growth is the goal. Use your extra time to start thinking beyond recovery. What opportunities await once the business is back on solid ground? 6. Learn to Value Time This extra hour reminds us that time is a valuable resource. Build structured reflection and review into your regular business routine. Consistently making time to pause, review, and adjust will help you stay on course for long-term success. The lesson here? Time is your greatest ally in recovery—use it wisely, and even an extra hour can help guide your business to a stronger future.

"Cash Flow Quadrant" is a book written by Robert Kiyosaki, which explores different ways to generate income and build wealth. Here are ten key lessons from the book: 1. E Quadrant: The book introduces the Cash Flow Quadrant, which categorizes individuals into four quadrants: Employee (E), Self-Employed (S), Business Owner (B), and Investor (I). It emphasizes the importance of understanding these quadrants and transitioning from the left side (E and S) to the right side (B and I) for financial independence. 2. Mindset shift: Kiyosaki stresses the need to shift from an employee or self-employed mindset to a business owner or investor mindset. This involves embracing risk, seeking opportunities, and developing financial intelligence. 3. Building assets: The book emphasizes the importance of acquiring income-generating assets such as real estate, stocks, businesses, and intellectual property, as opposed to focusing solely on income from a job or self-employment. 4. Leveraging systems and people: Kiyosaki asserts the significance of building systems and leveraging the efforts of others to create passive income streams. This involves delegating tasks, hiring employees, and building a team to run a business. 5. Financial education: The author emphasizes the need for continuous financial education to enhance one's understanding of money, investments, and business. He encourages readers to expand their financial literacy to make informed decisions. 6. Risk management: Kiyosaki highlights the importance of managing risks and learning from failures. He encourages readers to take calculated risks and develop resilience in the face of setbacks. 7.Networking and relationships: The book emphasizes the value of networking and building relationships with like-minded individuals, mentors, and successful people. These connections can provide opportunities, advice, and support along the journey to financial independence. 8. Tax advantages: Kiyosaki explores the tax advantages available to business owners and investors. He suggests understanding tax strategies and utilizing them to maximize income and minimize tax liabilities. 9. Financial independence: The book encourages readers to strive for financial independence rather than solely relying on a paycheck or income from a job. Kiyosaki discusses the importance of creating passive income that surpasses living expenses to achieve financial freedom. 10. Legacy and giving back: Finally, Kiyosaki highlights the significance of leaving a legacy and giving back to society. He suggests that financial success should not be solely self-serving but should also be used to make a positive impact on others and the world.

𝗧𝗵𝗲 𝗨𝗻𝘀𝘂𝗻𝗴 𝗛𝗲𝗿𝗼 𝗼𝗳 𝗛𝗼𝗺𝗲 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀: 𝗠𝗮𝘀𝘁𝗲𝗿𝗶𝗻𝗴 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹𝘀 Let's roll up our sleeves and delve into something that makes or breaks businesses yet somehow manages to get less spotlight than it deserves—the world of financials. If you're in the home services industry, I want you to know this: Understanding your numbers isn't just a part of the game; it's the game changer. 𝗧𝗵𝗲 𝗧𝗮𝗹𝗲 𝗼𝗳 𝗧𝘄𝗼 𝗠𝗮𝗿𝗴𝗶𝗻𝘀: Once upon a not-so-distant yesterday, a client in the industry faced the daunting specter of declining profits. Their revenue looked more buffed than a freshly polished hardwood floor—but underneath, the profits were slipping like an air conditioning unit on a slick roof. The villain? Poor understanding of operating margins versus profit margins. We dove deep into the numbers, trimming fat where we could and optimizing operations. The end story? Revenue didn't just walk; it ran, with profits healthily padding each stride. Don't just celebrate the top line; romance your bottom line. It's the true indicator of your business health. 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹𝘀: 𝗬𝗼𝘂𝗿 𝗚𝗣𝗦 𝗶𝗻 𝘁𝗵𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗧𝗲𝗿𝗿𝗮𝗶𝗻 Think of your financial statements as a dashboard displaying your business performance. Each business decision, from pricing strategies to cost management, should get its fuel from this dashboard. It’s not about how much cash you have in the bank—it’s about understanding the flow. Cash flow, to be precise. Managing it effectively means you're not just surviving; you're thriving, ready to scale heights unknown. 𝗣𝗶𝘁𝗳𝗮𝗹𝗹𝘀 𝘁𝗼 𝗗𝗼𝗱𝗴𝗲: 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗞𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲 𝗚𝗮𝗽𝘀 A common myth I've busted time and again: "If I have money in the bank, my business is doing great." Bank balances can be deceptive, hiding underlying issues like untamed expenses or delayed receivables. It's about making your money work for you, not just work you up before payroll day. 𝗧𝗵𝗲 𝗦𝗲𝗰𝗿𝗲𝘁 𝗜𝗻𝗴𝗿𝗲𝗱𝗶𝗲𝗻𝘁: 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗟𝗶𝘁𝗲𝗿𝗮𝗰𝘆 Here’s the scoop—empower yourself with financial literacy. Understand how to read income statements, balance sheets, and cash-flow statements as if they were your favorite mystery novel. When you grasp the narrative your financials are telling you, decisions shift from gut-driven to data-inspired. 𝗘𝗺𝗯𝗿𝗮𝗰𝗲 𝗬𝗼𝘂𝗿 𝗡𝘂𝗺𝗯𝗲𝗿𝘀: Let's be brutally honest—financials can seem as dry as sandpaper. But here’s where the fun comes in; your numbers are the map to buried treasure. They can lead you to hidden efficiencies, unexplored opportunities, and, ultimately, to financial freedom and a work-life harmony that we all dream of. Invest time in understanding the financial heart of your home services business. The effort pays dividends, literally and figuratively. When you view your financials not as a chore but as a treasure map, the journey to success becomes an adventure, full of growth, learning, and yes,

Healthy Balance Sheet? Understanding your business's financial health is crucial, akin to having a compass in the wilderness; it directs your decisions and keeps you on course. The Heartbeat of Your Business: Financial Health Financial health is essential to your business. It narrates not only your current position but also your future direction. A healthy balance sheet is crucial for not just surviving but thriving in the competitive business world. Deciphering Your Balance Sheet What characterises a healthy balance sheet? It's all about balance. Your assets should exceed your liabilities, resulting in a positive net worth. This is the initial sign of good financial health, but it's more than just numbers. The Power of Liquidity Liquidity refers to how quickly you can convert assets into cash. This is vital because cash is necessary for paying bills, investing in opportunities, and keeping your business operational. A healthy balance sheet should have a good mix of liquid assets, such as cash and accounts receivable, and long-term investments. Managing Debt Wisely Debt can be a useful tool for growth, but excessive debt is a red flag. A healthy balance sheet maintains a balanced debt-to-equity ratio, indicating that debt is being used effectively to grow the business without overextension. Equity: The Owner’s Value Equity represents what you, as the owner, truly own in your business. Increasing equity value is a positive sign of financial health, indicating that your business is generating value for you. Analysing Your Assets and Liabilities Examine your assets to ensure they contribute to your business's growth. Assets like equipment, inventory, and property should be productive. Similarly, evaluate your liabilities to ensure loans and accounts payable are manageable and effectively leveraged for growth. The Age-Old Balance Sheet Ratio A key indicator of a healthy balance sheet is the ratio between current assets and current liabilities – your working capital ratio. Ideally, this ratio should be 1.5:1, indicating sufficient current assets to cover short-term liabilities comfortably. Regular Health Checks Just like regular health check-ups, your balance sheet needs frequent reviews. Instead of looking at it only during tax season, review it quarterly or monthly. This habit helps you identify potential issues early and stay closely connected to your business's financial health. Planning for the Future A healthy balance sheet is foundational for future planning. It provides the confidence to make bold decisions, such as investing in technology, expanding product lines, or hiring more staff. It’s a launchpad for greater success. Navigating Challenges Every business faces challenges like economic downturns, market changes, and unexpected expenses. A healthy balance sheet acts as a buffer against these challenges, providing the resilience needed to weather tough times and emerge stronger. Noemaan Butt The 1 Business Group

𝗧𝗵𝗲 𝗨𝗻𝘀𝘂𝗻𝗴 𝗛𝗲𝗿𝗼 𝗼𝗳 𝗛𝗼𝗺𝗲 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀: 𝗠𝗮𝘀𝘁𝗲𝗿𝗶𝗻𝗴 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹𝘀 Let's roll up our sleeves and delve into something that makes or breaks businesses yet somehow manages to get less spotlight than it deserves—the world of financials. If you're in the home services industry, I want you to know this: Understanding your numbers isn't just a part of the game; it's the game changer. 𝗧𝗵𝗲 𝗧𝗮𝗹𝗲 𝗼𝗳 𝗧𝘄𝗼 𝗠𝗮𝗿𝗴𝗶𝗻𝘀: Once upon a not-so-distant yesterday, a client in the industry faced the daunting specter of declining profits. Their revenue looked more buffed than a freshly polished hardwood floor—but underneath, the profits were slipping like an air conditioning unit on a slick roof. The villain? Poor understanding of operating margins versus profit margins. We dove deep into the numbers, trimming fat where we could and optimizing operations. The end story? Revenue didn't just walk; it ran, with profits healthily padding each stride. Don't just celebrate the top line; romance your bottom line. It's the true indicator of your business health. 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹𝘀: 𝗬𝗼𝘂𝗿 𝗚𝗣𝗦 𝗶𝗻 𝘁𝗵𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗧𝗲𝗿𝗿𝗮𝗶𝗻 Think of your financial statements as a dashboard displaying your business performance. Each business decision, from pricing strategies to cost management, should get its fuel from this dashboard. It’s not about how much cash you have in the bank—it’s about understanding the flow. Cash flow, to be precise. Managing it effectively means you're not just surviving; you're thriving, ready to scale heights unknown. 𝗣𝗶𝘁𝗳𝗮𝗹𝗹𝘀 𝘁𝗼 𝗗𝗼𝗱𝗴𝗲: 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗞𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲 𝗚𝗮𝗽𝘀 A common myth I've busted time and again: "If I have money in the bank, my business is doing great." Bank balances can be deceptive, hiding underlying issues like untamed expenses or delayed receivables. It's about making your money work for you, not just work you up before payroll day. 𝗧𝗵𝗲 𝗦𝗲𝗰𝗿𝗲𝘁 𝗜𝗻𝗴𝗿𝗲𝗱𝗶𝗲𝗻𝘁: 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗟𝗶𝘁𝗲𝗿𝗮𝗰𝘆 Here’s the scoop—empower yourself with financial literacy. Understand how to read income statements, balance sheets, and cash-flow statements as if they were your favorite mystery novel. When you grasp the narrative your financials are telling you, decisions shift from gut-driven to data-inspired. 𝗘𝗺𝗯𝗿𝗮𝗰𝗲 𝗬𝗼𝘂𝗿 𝗡𝘂𝗺𝗯𝗲𝗿𝘀: Let's be brutally honest—financials can seem as dry as sandpaper. But here’s where the fun comes in; your numbers are the map to buried treasure. They can lead you to hidden efficiencies, unexplored opportunities, and, ultimately, to financial freedom and a work-life harmony that we all dream of. Invest time in understanding the financial heart of your home services business. The effort pays dividends, literally and figuratively. When you view your financials not as a chore but as a treasure map, the journey to success becomes an adventure, full of growth, learning, and yes,

𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗟𝗮𝗯𝘆𝗿𝗶𝗻𝘁𝗵: 𝗬𝗼𝘂𝗿 𝗚𝘂𝗶𝗱𝗲 𝘁𝗼 𝗠𝗮𝘀𝘁𝗲𝗿𝗶𝗻𝗴 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗙𝗶𝗻𝗮𝗻𝗰𝗲𝘀 Hello, fellow entrepreneurs! I'm Rebecca Gold, and if there’s one thing I know after years of thriving in the home services sector, it’s that your financial acumen can make or break your business success. I’m here to share some invaluable insights on how you can harness the power of your financials to not just survive, but thrive by creating a roadmap for revenue generation, profitability, and game-changing business decisions. 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗬𝗼𝘂𝗿 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗟𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲 The first step towards financial mastery is understanding the story your numbers tell. Whether it's your cash flow statement, balance sheet, or income statements, each report holds the key to understanding your business health. Here’s how to start: Break it down: Literally. Segment your financials into digestible, action-oriented bits. What’s your revenue stream? Where are the major costs? What’s the profit margin? Simple, yet powerful questions. Trend Analysis: Dive into past data to predict future trends. Is there a seasonal dip in cash flow? What has been your growth rate over the years? Trends are your insights into what to expect and how to plan better. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝘁𝗼 𝗕𝗼𝗼𝘀𝘁 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗮𝗻𝗱 𝗣𝗿𝗼𝗳𝗶𝘁𝘀 Revamping your financial outlook involves tactical moves designed to increase both top-line and bottom-line growth. Cost Efficiency: Even small optimizations in cost can dramatically improve your profitability. Look for ways to reduce overhead, negotiate better terms with suppliers, or adopt new technologies that enhance efficiency. Diversify Revenue Streams: Don’t put all your financial eggs in one basket. Look at adjacent services or products that complement your existing offerings. More streams mean more stability and growth opportunities. 𝗠𝗮𝗸𝗶𝗻𝗴 𝗗𝗲𝗰𝗶𝘀𝗶𝘃𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗠𝗼𝘃𝗲𝘀 Informed decisions are powerful, especially about business expansion, scaling, or even stabilization strategies. Invest Wisely: Use your financial data to identify the best areas for investment that promise larger returns. This could mean investing in better tools, technology, or even people. Risk Assessment: Understanding your finances also means you're better equipped to mitigate risks. Create scenarios—what happens if a major expense hits unexpectedly? Have strategies in place, based on sound financial data. 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺 𝗡𝘂𝗺𝗯𝗲𝗿𝘀 𝗶𝗻𝘁𝗼 𝗡𝗮𝗿𝗿𝗮𝘁𝗶𝘃𝗲𝘀 Imagine transforming every number in your balance sheet into a story that points toward growth and stability. That’s the true power of understanding your financials. Empower yourself with knowledge, and watch as your business reaches new heights of success. If you have questions or need help feel free to reach out. #thegoldstandardcoach #businesscoach #coach #business #consultant #businessconsultant

At the most fundamental level, there are 4 things that businesses need to nail down: -         Your Vision/Purpose/Mission -         Goals & Strategy to achieve them -         The right Team to deliver the strategy -         Cash to fund activities That’s it … simple! Conceptually it is simple, but of course to think that establishing each of these things is easy would be ridiculous. It takes real commitment and drive to build each of these things to the point where … … there’s clarity and alignment in terms of what you’re all about and what you intend to achieve … there are ambitious (but achievable) goals, a clear direction of travel and activities to drive momentum … the very best talent are in place, motivated and bringing their best selves to work every day … there’s cash in the bank to fund the people & activities that enable the strategy, achieve the ambitious goals to realise the Vision This list can also be viewed as an interdependent hierarchy i.e. each successive level is influenced by the previous one and any failure or inadequacy in each level will impact the others: -         Establishing the Vision/Purpose/Mission provides the lens -         Through which to establish Goals & Strategy -         You can then ensure the right people are in the key positions to do what needs to be done to drive the strategy -         The financial (or funding) plan underpins everything If the money’s not there then it’s not possible to pay people or fund activities which means it’s less likely that the strategy will be implemented effectively and the goals won’t be achieved. If the right people aren’t in the key positions, then the strategy may not be fulfilled and the cash could be wasted or cashflow impacted. If the goal(s)/strategy isn’t clear or robust, then the right people may not be secured. And even if they ARE the very best talent, they may not be focusing on doing the right thing and as such getting the best results. AND THEN … the market changes due to any number of factors (PESTLE Analysis territory) which may not impact your Vision & Purpose, but could very well require a change of goals/strategy & team. Keeping abreast of this stuff is critical to continued success. If you’re NOT evaluating the environment in which your business operates and constantly evaluating your strategy, team and financial plan then I would urge you to stop and take stock. From PESTLE, three things stick out for me: -         Politically: We’ve just had the most significant political change in 14 years -         Environmentally: The significance of being active with ESG cannot be understated -         Technologically: AI will change – is already changing – the way businesses operate so if you’re not reviewing systems processes and your Data Strategy (if you have one) then be prepared to be left behind How are you going to be affected … and what are you doing about it? Steve Benson John G. Courtney Helen Tanner Olly Reid Gary Weston Andrew Robinson

Have you ever been frustrated collecting payments as a business owner? It's one of the most common complaints! When the economy does well, people pay closer to on time. Then, when the economic outlook becomes negative, clients pay later and later. What this means is that payment times track business confidence. If our business confidence comes from: ⮑ External factors like the market. We will always be like a small boat on a choppy ocean. ⮑ Internal confidence. We may be a small boat, but we can weather any storm. Most people don't realize that this is self-fulfilling. Here's how the source of our confidence affects our finances: ⮑ The most common way to manage money is to pay as late as possible while collecting as fast as possible. The gap between the two is used as working capital. However, there are huge problems with this approach. Here's why: → A scarcity mindset drives it. → It attracts people to pay you late. → It covers cash management issues. → Bad will is fostered with your vendors. → It's a negative affirmation that there isn't enough money. → The faster the business grows, the more cash flow pressure. → It's a reactive management strategy. Payments get issued to the loudest voice. → The early warning signs of a business ready for a cash flow heart attack. I've worked with business owners and investors for 30 years, helping them grow, make more money, and have less stress. Early in my career, I used to want to pay early, but when I could not do it, I felt a lot of shame. This shame stopped me. Getting to the source of my financial shame changed everything. What's the alternative way to manage cash flow? ↪️ Collect as fast as possible. ↪️ Pay early or, at the latest, on time. Here are the benefits: → It's a positive affirmation. → Drives an abundance mindset. → Creates positive goodwill. → Attracts fast paying clients. → Leads to positive cash flow. → Creates an abundance of working capital. → Less drama and better financial management. → Makes the business more resilient. Here are the steps to make this transition: 1. Work on becoming shameless around money! (ask me how) 2. Commit to a new policy to pay early and collect early. 3. Implement basic financial management systems. 4. Enter all incoming bills into the software upon receipt. 5. Train everyone bills will be paid weekly on the same day. 6. Don't make ad hoc payments. 7. Follow up on money owed immediately. 8. Communicate often and clearly. DM me if you want more specific help implementing financial management systems. Your family will thank you, your clients will love you, and your vendors will love working with you! How about you? Do you pay as fast as possible? - - - Thanks for reading! 📌 My name is Harrison, and I'm the co-founder of Goldzone Leadership Center. I share stories about leadership, business, and winning the game of life! Follow for more. 🍀 #Goldzone #Leadership #Business

📊 Balancing Risk & Savings: Key Insights for SMBs How do you strike the perfect balance between growth and security in today’s economy? Finding the right balance between investing and saving is crucial but challenging. In our latest guide for small businesses, we explore essential strategies to navigate financial uncertainties effectively. ✨ What You’ll Discover: 🛡️ Building Resilience: How savings can buffer your business against economic shifts. 🚀 Strategic Investments: When and where to invest in your business's growth. 📘 Expert Advice: Insights inspired by Morgan Housel’s The Psychology of Money. Whether you're contemplating aggressive growth plans or fortifying your financial defenses, understanding these dynamics can significantly impact your decision-making process. Ready to enhance your financial strategy? Bender CFO Services can guide you through every step, ensuring your business not only survives but thrives. Contact us to transform your business with expert financial oversight! 🔗 Dive deeper into these strategies by reading the full blog. Equip your business with the knowledge to thrive in any economic environment! https://bit.ly/3yln1Yc #entrepreneurship #finances #smallbusiness #entrepreneur #marketingagency #advertisingagency #digitalagency