I’m going to admit that when I first started running my restaurant, I had zero knowledge in monitoring and managing cash flow. For me opening my restaurant was the end goal.
Let’s be honest, deciding on the venue and rent, name of the restaurant, restaurant concept, menu, staffing and hiring, and marketing of the restaurant can be exhausting!
A month after opening my restaurant, I realized that I had been so caught up in the day-to-day operations I had neglected the most important aspect of my business; the finances.
Being a new business owner, I didn’t know how to handle the daily finances and cash flow of my restaurant.
Knowing how to handle and manage your businesses cash flow and finances is important for operations and longevity of your restaurant. A business that’s able to manage their finances effectively can lead to long term success and sustainability.
Here’s 2 simple ways to get started when it comes to setting up your business for success!
Track Your Business Expenditure and Cash Flow
Keeping track of how much is just as important as tracking your revenue.
To put it simply, cash flow is the amount of cash your business generates versus the amount of cash that is spent on a daily, weekly and monthly basis. Not comprehending simple concept can result at being at the helm of a great financial risk.
One way to start monitoring your spending is to directly monitor your inventory and payroll.
4 key things to ask yourself are:
“Beware of little expenses. A small leak will sink a great ship”
– Benjamin Franklin
Find this useful? share it with your employees or peers in the industry