Keeping the cash flowing is one of the biggest challenges many businesses face. In fact, financial issues are to blame for 65% of business breakdowns in the first five years. The good news is that setting good habits early on can make all the difference and can be the key to business success. Plus, it’s never too early to set good habits.
That’s why Xero recently launched a research project where the power was put into the (little) hands of our future business leaders to help lead the way to cash flow success.
We discovered from our research that children start building relationships with money at just seven years old. Gone are the days when kids would save up pennies in piggy banks, now they are earning an impressive £570 on average per year.
Five simple ways to make cashflow easy-peasy
The entrepreneurial spirit is certainly strong. Three-quarters (74%) of parents admit that their kids have an interest in making money through chores or activities outside the home. But alas it seems they’re not quite sure how to manage their earnings and budgeting appears to be pretty low on their agenda.
For business owners of today and tomorrow, we have created an easy peasy guide with five simple ways to make cash flow child’s play – whether that means pocket money or client fees. The five cash flow fundamentals to live by are identified as:
- Invoice promptly
- Build (and maintain) relationships
- Keep accurate records
- Define your payment terms
- Offer easy payment methods
In the age of innovative, technology can help to make your life even easier. Xero lets you turn quotes into invoices and send them to customers using your mobile. You can also automate invoice reminders so clients know when a deadline looms. Xero even integrates with services like PayPal, so paying online only takes a single click. And, because it’s Xero, using it is so simple it’s child’s play.
Click here to find out how to make managing cash flow child’s play, and watch our video on the top five rules to follow to put you and your small business on the path to success.