Guest article: Liquidity planning as a sole trader – part1

A contribution by Stefanie Kurzweil, owner of Semicolon Relations

Exactly one year ago I set up my own communications agency, Semicolon Relations, and over the last 12 months I have been through what the startup scene likes to call a “rollercoaster”: sometimes it climbs steeply, sometimes it goes back down, the bends are sharp and in places it is bumpy. The uncertainty about what lies around the next bend is a constant companion of self-employment. Being an entrepreneur means being able to bear that uncertainty and learning to love the adrenaline rush.

Liquidity, the dreaded opponent

But one adrenaline rush I would happily do without is the trickiest point of entrepreneurship: liquidity. From the very beginning I started to record the revenues and expenses I knew about in advance – and in the most unsuitable applications imaginable: sometimes in the notes function of my smartphone, sometimes in a carelessly created Excel list that disappeared somewhere in a folder, and sometimes by hand in the Moleskine notebook that is obligatory in the communications industry. In short: I recorded my cash flow in an amateurish way. But at least I recorded it. That helped me through many a sleepless night in which I asked myself how my company would be doing in 2 months. Asked myself whether I should pay my office rent straight away or wait for another incoming payment first. I considered whether I could afford to advertise my company – on Facebook, Instagram, LinkedIn or even in print media. I asked myself whether I could afford reinforcements for a large customer project at all and which funding might be an option for me. Questions upon questions.

Shortly before my company’s first anniversary I stumbled across Commitly on Facebook by chance – or, to be precise, across Commitly founder Jürgen Faè. And in numerous conversations it became clear to me that I was asking myself exactly the same questions that every entrepreneur asks, and that it was precisely those questions that were keeping me awake at night.

Commitly – off we go!

Why did I choose Commitly? Firstly out of curiosity: does it really exist, this great tool that makes my everyday life as an entrepreneur easier? That helps me to structure my cash flow and plan into the future so that I can sleep a little more peacefully at night? That gets me to manage more actively?

To celebrate my first anniversary I registered with Commitly, even though the process is hardly ceremonial because it is finished in – timed – 3 minutes. Simply register: first name, surname, email address and password. Confirm the registration email, log in, select a bank, synchronise the account… done!

You will find out how I am getting on with Commitly in my next blog post. So, stay tuned!

About Stefanie Kurzweil

Stefanie Kurzweil is almost 30 years old and has been running her own communications agency, Semicolon Relations, for exactly one year. With 8 years of professional experience in the communications industry, on both the corporate and the agency side, she now faces the challenges of being a sole trader every day. www.semicolon-relations.com

Credits: Photo by Green Chameleon on Unsplash