Breakthrough: What makes a start-up business financially viable
Will your business make money?
In the early days as a business owner, it’s all gung ho enthusiasm, brimming with ideas and living out your dream as a self-made entrepreneur. But – will turning your passion into a business actually make money?
Meet The Chief Smasher and Miss Tomato
Previously successful business owners, Amanda and Ken had already been there and done it. Ken had retired but Amanda wasn’t quite ready to down tools – she still had an itch of a passion to pursue.
As well-travelled life-long foodies they combined their love of cooking – with Ken as head chef and Amanda customer facing – and converted a horse box into a travelling kitchen inclusive of built-in pizza oven. Voila! The Smashed Tomato launched, serving hand-crafted Wood Fired pizzas across Cornwall.
We have fun in our business, that’s the most important thing. We’re passionate about creating great-tasting food and we want our brand to be fun, so much so that we nicknamed ourselves the Chief Smasher and Miss Tomato!
Starting their new business venture from scratch, and with so much having changed since they last ran their businesses, Amanda and Ken contacted Breakthrough to get a refresh of the back-to-business basics.
Having recently relocated to Cornwall, we wanted to keep up to date with what’s changed in the business-world since we left, particularly in finance. We wanted to get some reassurance that our business financials were sound.
Will their business make money?
Working 1:1 with their Business Development Manager (BDM), the couple got help with assessing the viability of their business, considering forecasting, cash flow and monitoring business performance.
Part of the online Breakthrough workshop session is about making sure the business is financially sustainable long-term. Amanda and Ken spent time covering the financial basics and getting down to the nitty gritty I.e. did their numbers add up?
explains BDM Jon Gerrard.
For a young business, managing and forecasting a realistic cashflow over a 12-month trading period and beyond is vital.
Consider your overall revenue, what your monthly costs are, your profit and how much cash you are left with to carry you over into the next month.
says Jen Ayres, Breakthrough workshop lead.
Business owners need to be realistic with what their financial expectations are and how this will impact on their cost of living. Many businesses won’t be in a cash-positive position for some time after they start trading. You need to think about what that means when it comes to drawing a salary to live on.
Business growth in 2021
For Ken and Amanda, the financial support received through the Breakthrough workshop gave them the confidence and reassurance that The Smashed Tomato would achieve their financial targets for 2021.
The financial section of the Breakthrough workshop was very useful and proved that our business idea for The Smashed Tomato was a financially viable one. So much so that we’re excitedly planning the launch of Smashed Tomato No.2!