Tracking Cashflow

Welcome to cash flow management. And first off, a massive congratulations for just getting your business to this point here. We are registered, we are insured. You're doing an incredible job and you're building these really solid foundations for your business to now grow. So I want to talk about a really important topic next, and that is cash flow, which, granted, I know it can feel like it's a bit of an intimidating word, but I'm going to break it down as easy and as simple as I possibly can so that you can really get the hang of it and also just feel a lot more ease when it comes to cash flow. So I'm going to start with the really simple stuff, like, what actually is it? Like, what does the word cash flow mean? And cash flow is really just the way money flows into and out of your business. Money comes in when clients pay for your services, and it goes out when you buy supplies or pay rent or invest in training. It's helpful to see cash flow as just that, a constant natural flow of money moving in and money moving out of your business. And in order for money to come in, it has to go out, and vice versa. And when you can actually just see it in that way and get your head around that, it is a lot easier to manage because it doesn't feel as rigid or as overwhelming. It's just a part of the natural rhythm of your business. Now, I know that handling money might not also feel like the easiest thing to do when it comes to running a business, and trust me, I get it. But cash flow management isn't really about restricting yourself, and it's also not about stressing over every pound, which it might have actually felt like in the past. It's more about building a healthy relationship with your finances. And that also brings me to something really, really important, which is money mindset. Now, we all have a money mindset, and it is shaped by things like our childhood upbringing, by the people we had around us, by how much money we had when we were maybe growing up, and also by personal experiences when it comes to money. And that mindset that has been built up over time can massively influence how you are currently managing the cash flow of your business or of your life in general. So I just want you to start with a quick task and I'd like you to just stop and take a minute to think about how you actually feel about money. Maybe you grew up in an environment where saving was highly valued, or perhaps you are someone who finds it really, really easy to spend. Sometimes these mindsets can really save us, but sometimes they can actually limit us as well. And when it comes to running a business, just being aware of these patterns is actually a real superpower. Like knowing where your tendencies lie can actually help you to make more intentional choices. So it's not about being embarrassed of your money mindset or thinking, oh no, why do I feel like that? It's actually just about being able to manage cash flow in a way that supports your business goals and also being aware of why you've maybe done things in the past or why make certain decisions when it comes to cash flow and the money moving in and out of your business right now. So throughout this section, I'm going to guide you through some easy steps to get started with cash flow tracking. And by the end, you're going to have a straightforward system that feels doable and helps to just feel a little bit more empowered when it comes to your business. Now you might even start noticing how certain habits might affect your cash flow. Like that tendency we all have to splurge on the latest gel polish collection when it hits the shelves. This is totally normal. We call it the shiny object syndrome at nto. But if we're not careful, we can end up overspending in the wrong areas of your business. And on the flip side, spending too little can also hold us back. Like, maybe you're that person who also always wants to buy these collections, but is always worrying about money and literally sits there watching everybody else on social media with these new, shiny new collections and thinking, I wish I could afford to buy that. Like learning to invest. But learning to invest in the right places is actually the key to your growth. So that's what we're going to cover in this session. So how do you actually know where to save and where to spend? Now, the best guide is to get really clear on what your business goals are. So when you know what you're actually working towards, it then becomes a lot easier to decide whether an expense is a wise investment or. Or whether it's just a distraction. So don't worry, we're going to talk more about that in future modules. But for now, let's just focus on getting your cash flow system set up so that you've got a solid foundation to build on. So let's get started with the next lessons. Imagine yourself feeling in control of your finances, knowing exactly what's happening in your business, and actually just being able to make decisions confidently. That's what we're aiming for. You've got this. I'm here with you. Every step of the way. Let's dive in.