One of
the most common reasons business owners contact e and ask me for my support and
advice is because they are having financial challenges. Somehow money flows out
of their accounts more quickly than it drips in. Is that true for you too? Most
practices can manage robbing Peter to pay Paul, until a big invoice comes in
and causes an acute drain on ash flow,
this could be a larger than expected tax bill, a piece of equipment that needs
repairing or renewing, a compliance, a training course or God forbid a patient
or former team member suing for compensation. Whatever the reason the practice
discovers they are acutely financially exposed.
I would
like to share with you a tried and TESTED way to ensure that this never happens
to you.
In the
programme Transform your practice in 10 days, I share a 6 step process which
will enable you to transform your financial situation the first step o the process is P – Preparation which
in turn in is broken down into three simple easy to remember areas denoted by P
(pounds) S(Shillings) and d (pence)
Today I
would like to share with you some elements from the P of PSd. In this area I would
like to share with you a pneumonic TESTED which will help you to remember what
to do with your income so that you always have enough.
The key
is to budget, and allocate funds your money into into six different ‘piggy banks’,
for very specific spending areas, as soon as it comes into your account and
after you have set aside provisions for tax.
These ‘piggy
banks’ are
T Tithing – money you give away
E Essentials money you spend on absolute
essentials
S Saving- money that you put aside for
spending on things that you know are on the horizon.
T Transformation - Money that you put aside to invest in projects that will create
passive streams of income and create financial freedom for you and your family.
E Education – money that you will spend
on training course, business development and coaching, because the more you
learn the more you earn
D Delight -Money
that is used to create delight in your life
There
are some key % for each piggy bank and I look forward to sharing these with you
when we speak.
Having read this brief article what can / will you differently
that will improve your financial situation, personal y and professionally?
This
article takes some ideas and concepts from the financial module of our
programme “Transform your practice in 10 days.” If you would like to hear more
about this please e mail Jane@IODB.co.uk
If you would like to discuss any
issues raised in this article, and how we can help you make your good practice great, call 07989 757 884 or e mail Jane@IODB.co.uk
and discover how.
A
free practice health check can be downloaded
here
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