FFN #59: This is How We Are Budgeting for Growth

🌤️ Forecasting with Freshbooks

As I said, a fellow freelancer recently spoke to me about the power of forecasting. Forecasting is crucial for freelancers because it helps us anticipate income fluctuations, manage expenses, and prepare for slow seasons, ensuring financial stability and long-term success. How do we do it? Well, start by reviewing your past months’ earnings to determine an average and adjust for seasonal fluctuations. If you're just starting, estimate based on your expected clients or project load. We love Freshbooks for this because it automatically tracks your income, providing clear financial reports that highlight patterns over time. You can use these insights to forecast income accurately, so you can make informed decisions and set realistic goals for your business. I’ve found forecasting my income helpful for planning holidays, setting goals and knowing when to up my rates to help me reach them. As freelancers, we don’t have all the $$’s that big biz has to spend on software, which is why Freshbooks has our back with all plans, freelancers receive unlimited invoicing, unlimited expenses, unlimited estimates, and can accept online payments.

Try Freshbooks for free to start growing your biz with confidence. #partner

💰 Wth is Cash Flow

Cash flow is what keeps your business healthy. It’s the movement of money in and out of your business, and managing it well is crucial to keeping things running smoothly. When cash flow is strong, you can cover your expenses and invest in growth. But when it’s tight, even a profitable business can struggle.

📅 Tips to Improve Cash Flow

Managing cash flow requires strategic planning and being proactive. Here are some actionable tips to help you stay on top of it:

• Shorten Payment Terms: Instead of the standard 30-day payment term, request payment within 14 days. This ensures you get paid faster and keep income flowing in.

• Offer Early Payment Incentives: Provide small discounts for clients who pay invoices within a week. It’s a simple yet effective way to encourage timely payments.

🛠 Break Up Larger Projects

For bigger projects, consider breaking them down into smaller milestones. This allows you to invoice for partial payments at key stages throughout the project, ensuring a steady stream of income rather than waiting until the end.

⏰ Automate and Follow Up on Invoices

Use invoicing tools like Freshbooks to automate your billing process. Regularly follow up on overdue invoices to avoid unnecessary delays in getting paid.

🌱 Diversify Your Income Streams

To avoid dry spells between client work, diversify your income by offering additional services. Think workshops, digital products, or other ways to package your expertise. Multiple income streams will help you create more consistent cash flow over time.

🤗 Invest in Your Dreams

You and your business deserve all the success in the world, so invest in it so you can grow. Setting aside a portion of your budget for tools, a new offering, training, or marketing can fuel growth and improve your long-term earning potential. Whether you need new equipment, updated software, or professional development, these investments can enhance your skills and efficiency, leading to higher-paying opportunities. Allocating even a small portion of your earnings toward growth ensures that your freelance business remains competitive and adaptable in a rapidly changing market.

Wasa Cripsbread

This is a snack I know some people love and others hate with a passion. I am in the love it, can’t get enough of it group. My fave way to snack on them is with avo or almond butter and a bit of honey popped on top. Wasa crispbreads actually keep me full and I love that their ingredients and all-natural. Plus they’re carbon neutral - big yes from me!