One of the aspects that bookies most neglect is the finances of their betting business.
Many bookies do not worry about having correct control of the money that enters and leaves the business, and they do not take the time to analyze their finances carefully.
As a result, these bookies put their business at risk and may face periods where the betting business’s income lows.
To correctly manage the finances of their betting business, bookies must follow two rules.
Plan cash flow
The first rule that bookies must apply to manage their business finances properly is to plan their cash flow.
Cash flow is effortless to plan. For example, if the bookie has a betting business that relies heavily on the NFL, it is easy to predict that the business will have a good cash flow during the football season.
Moreover, that cash flow is very likely to increase as the Super Bowl approaches.
But once the season is over, the cash flow will drop, and the business will have less activity and profit.
With proper cash flow planning, bookies can identify the times of the year when their business declines and prepare for it.
Have clear records
The second rule bookies must follow is to keep clear records of every penny that goes in and out of business.
In this way, the bookies will know if the finances of their business are healthy.
Bookies who do not keep a detailed track of the money that comes in and goes out of the business run a lot of risks. And can find themselves in situations where the business is not breaking even and where no profit is generated.
Tools to master the finances
Performing cash flow planning or keeping detailed records of all the money that goes in and out of business is not easy.
For this reason, bookies must have a good Pay Per Head provider. Since these companies have several tools that bookies can use to control the finances of their business.
For example, using the reporting tool, bookies can determine the betting pattern during the year. With this information, they can project the cash flow for the following years, since they will know which were the months when the business registered more action.
Also, with the Pay Per Head provider’s tools, the bookie will also be able to keep track of the money that has entered the business, how much the bookie owns to winner gamblers, and which gamblers have outstanding accounts.
