🙄 Confession: the money aspect of my business bores the f*ck out of me. I don’t care how much zoom costs per month.
But you know what I do like? HAVING MONEY. It’s a blast! And I can tell you that there were months where I didn’t know how to pay my team and THAT SUCKS ENORMOUSLY.
Our friend Sarah from The Good Food CFO (who helps grow profitable food businesses) has some tips on how to utilize your money:
✨ Hire A Bookkeeper: This is an essential par of running a food business: As a founder, you have many jobs and bookkeeping SHOULD NOT be one of them. It will actually save you money in the long run if you work with a bookkeeper from the beginning.
✨ Hands Off The Wheel: Let the bookkeeper do their job! They should understand the food industry and have systems and professes in place that allow you to stay OUT of the bookkeeping process and focus on running your business.
✨ Stay Organized: Your Profit & Loss report provides really helpful details into how your business is performing operationally and is highly customizable. It should make sense and provides value to YOU as the business owner. Work with your bookkeeper or CFO to customize your reporting so that you can find the financial data you need when you need it.
✨ Receivable Report: Cash flow is extremely important to food businesses. To project cash flow accurately you have to have a precise total of current and past due accounts. When you have accurate reports, you can easily see what customer payments are past due (so you can follow up) and what customer payments are coming in. This will give you a good idea of the cash available in your business.
✨ Get Your Systems In Order: You should not be spending your time writing cheques. Having a system in place, such as setting up ACH payments with all your vendors is something that takes a little time to set up, but will save you tons of time and money in the long run.
So take it from me. Listen to an expert like Sarah from @thegoodfoodcfo so you can focus on where to spend your money on fun places instead of wondering how the hell you’re going to pay for heating.