With April on the horizon the new financial year is just a few weeks away, offering a fresh start for franchise owners who would like to get their business finances in better order.

Here we offer a few handy financial tips for franchisees keen to take a tighter hold of their company cashflow over the next 12 months.

financial tips for franchise owners

1. Stay on top of your book-keeping

Keeping a record of your business finances is not only a legal requirement, but also a great way to see how things are ticking over on a day to day basis. Cashflow and expenses are key to the successful running of your franchise, so always make time to update, record and evaluate your balance sheet as often as you can.

2. Decide on a manageable budget

Start the year with a reasonable budget in mind and do your best to keep to it. This should cover all outgoings your company will have to pay through the next 12 months, from rent and transport costs to everyday overheads like cleaning products and stationery. Most franchisees find that staying on budget makes it far easier to make an annual profit.

3. Consider long-term financial planning

Once you have made the commitment to become a full-time business owner, you’re likely to be in it for the long-term, so consider making advanced financial plans. Projecting the financial future of your company over the next 12 months and beyond can help to manage ambitions and will be a deciding factor in planning and financing future success.

4. Keep a contingency fund

Because we never know what the future may bring, it’s always worth putting away some contingency money for a rainy day. An emergency fund can be a real blessing for a small business when the unexpected occurs and can go a long way to keeping your business afloat.

5. Try to be more frugal

Whether it’s buying stock in bulk or keeping an eye on office spending, driving down costs is a simple and effective way of saving money and increasing your profit margin. Try to look at ways to cut down or reduce spending during this financial year and your balance sheet will look far healthier in 2019!

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