March 2012 - Boating Industry Association of NSW

More documents

Recommendations

Info

Managing your Cash Flow What you are about to read is some of the most important information you will ever receive about running your business. Why is it important? Because it’s all about the serious subject of managing your cash flow. If you want to stay in business you need money coming through the door. It’s as basic as that. All businesses need money – lots of it coming in regularly, just like those cursed bills. That day-to-day money for running the business is called working capital. Then there is debt capital, borrowed funds to be repaid to a bank. (And for the record, the money you put into your business is called equity capital or owner’s equity.) Keeping track Generally, to avoid a cash hiccup you have to know what is happening with: • Operating expenses • Overheads • Stock levels • Debt collections • Your profits By doing a cash flow projection you can make sure that each month there will be sufficient funds to keep you and your bank happy. Failure to do this is a common cause of business collapse. Hope for the best, plan for the worst The starting point is to predict your sales and expenses. This is much harder for a new business as there is no history to look at for guidance. Experts suggest you do a few cash and profit projections ranging from blue sky scenarios to projections from hell, where everything goes wrong. Then do a number of sensible average projections. As these are guesses, odds are you will be wrong. But if you monitor the projections – month by month, say, or even week by week – you can make some running repairs. Remember, this exercise is crystal ball stuff but people who do it regularly do actually become good at knowing their business, including their customers and debtors. They are not only in control, they are less likely to go belly up. What are you guessing? Try working out estimates for these items to get an idea of cash flow: • Cash in, or receipts (sales and other income) • Expenses, including both permanent or fixed expenses, such as rent, and changeable or variable expenses, such as advertising and transports costs • Monthly loan repayments • Outlay on stock or raw materials • Stock levels • Remaining capital • Set-up costs Where do you start? The starting point should be the brighter side of the whole show; that is, a sales revenue projection. Clearly, if you have drawn up a marketing plan to sell your products or services, then you already have it. The next step is to knock up a list of estimated expenses. Ask yourself what you estimate the following to be: • Kick-off costs for fitouts, purchase of the business, legal costs, and so on. • Fixed costs, such as rent and wage. • Variable costs, which include advertising, telephone, paper bills, and similar items. These latter costs will go up and down with the success and failure of the business and have to be carefully monitored. Estimates in percentage terms can be worked out to help your projections as sales increase or decrease. For example, you might work out that your advertising bill is 2% of sales, so if sales jump from $1,000 a week to $2,000, your ad bill will, or should, go from $20 to $40. Take some time to become an expert at cash flow. Your bank manager will love you for it! To find out more or arrange a Health Check call the BIA NSW on 9438 2077 or visit WEBPAGE LINK today. h As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. BIA NSW may receive a fee from the Commonwealth Bank of Australia for each successful referral. 50-Point Safety Check makes even more sense with a $50.00 discount for Club Marine policy renewals $99 LESS $50 Club Marine Policy Discount ONLY $49 Now you have a service that will help give you peace of mind when you are on the water Your boating should be fun and relaxing. Your actions as the skipper will ensure that you have done what you can to ensure the safety of your passengers and yourself whilst on the waterways. Adding the 50-Point Safety Check to your routine each year, will help you know more about what maintenance may be needed before you hit the water. www.50pointcheck.com.au Conditions apply. The 50-Point Safety Check is suitable for trailer boats under 8 metres long. The 50-Point safety check is not a pink slip or requirement of vessel registration. All observations, assessments and recommendations relate specifically to the time of inspection. The 50-Point Safety check is a product of the Boating Industry Association of NSW Ltd and carried out by authorised members of the Marine Industry Mechanical Repairers Association. $50.00 is received via a discount on the renewal of your Club Marine Insurance Policy. The discount can be redeemed within 12 months of the date of your 50-Point Safety Check inspection. Visit www.50pointcheck.com.au for a full list of conditions that relate to this product. Boating Industry Association of New South Wales Ltd 50pt Check_Afloat TPH.indd 1 10 - March 2012 BIA of NSW LOGBOOK 17/6/11 4:37:26 PM
Are you making the most of your BIA membership? Boating Industry Association BIA members now have access to a Business Banker from Commonwealth Bank who can arrange for you to receive tailored advice on: • Day- to-day banking including business accounts and EFTPOS terminals. • Funding options including Business Credit Cards, Asset Finance and Commercial Loans. • Investment products • Insurance • Financial Planning These products can help you manage cash flow and risk and help you expand your business. As a BIA member you’re entitled to a free Business Financial Health Check. A Business Banker can look at every aspect of your business to ensure you have just what you need to help you succeed. Special rates on Merchant Services for BIA members As a BIA member you’re also entitled to special rates and reduced terminal rental for Merchant Services (EFTPOS terminals). This could mean that your BIA membership pays for itself. Interested? To find out more about Commonwealth Bank products and services available to BIA members complete your details below. We will arrange for a Commonwealth Bank Business Banker to contact you and discuss your needs. Completed forms can be sent to: Boating Industry Association PO Box 1204 CROWS NEST NSW 1585 E: info@bia.org.au P: 02 9438 2077 F: 02 9439 3983 Business Name _____________________________________________ Email ______________________________________________ Contact Name ______________________________________________ Telephone __________________________________________ Address __________________________________________________________________________________State ________________ Commercial Loans Business Accounts Business Credit Cards Investment Loans Financial Planning EFTPOS/Merchant Services Insurance Asset Finance I would like Commonwealth Bank to contact me to arrange a free Business Financial Health Check Boating Boating Industry Association of New South Wales Ltd BIA may receive a fee from the Commonwealth Bank of Australia for each successful referral.
Page 1 and 2: LOGBOOK NEWSLETTER The official new
Page 3 and 4: contents General Manager’s Catch-
Page 5 and 6: A national perspective on boating i
Page 7 and 8: ...like no other Sydney Convention
Page 9: Construction Because the site adjoi
Page 13 and 14: Acceptable Quality So what is ‘ac
Page 15 and 16: 2012 BoAt Show ProgrAmS attendees t
Page 17 and 18: Winner of Bellingham International
Page 19 and 20: Annual Analysis New Registrations f
Page 21 and 22: Bob Vinks joins Nautilus Marine Man
Page 23 and 24: Does your super fund tick all the r
Page 25 and 26: Emergency Response Drill on Pittwat
Page 27 and 28: Care, Marketing and the sales proce
Page 29 and 30: The BIA offers a range of courses f
Page 31 and 32: Walcon Marine Australia • Marinas

March 2012 - Boating Industry Association of NSW

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?