MANAGING MONEY

Start Up Wednesday session

Managing Money:

WHY DO THIS?

Measure opportunity

Tax

Make sure you know where everything is going

Think of it as BASICALLY – money coming in and going out: PROFIT + LOSS

Costing

COSTING + PRICING ARE NOT THE SAME

OVERHEADS = bills etc. that help run my business (fixed costs and variable costs)

RESEARCH & DEVELOPMENT

YOU ARE SELLING TIME! As a creative you should work out an hourly rate.

If you do a favour – log how much it would cost.

Portfolio career; what I will have.

Have a survival target income AND an aspirational income

DAY RATE!

Think about it as YOU ARE AT WORK!

CHECK OUT LABOUR RATE!

Overhead price goes into the cost of windows.

CASH FLOW CAN KILL!

Cash flow is the in-flow and out-flow of money through your bank account – break down your expenditure

CASH FLOW IS IMPORTANT – can give you confidence and stability with your flow. Track your money, does anyone owe you? Protecting you from surprises.

PROFIT + LOSS  - measures in a given year.

BALANCE SHEET – tells you the value of your business:

ASSETS VS LIABILITIES