tag:blogger.com,1999:blog-58277050959909531332024-03-12T20:46:15.123-07:00Business and FinanceThe latest news and analysis around Business & finance.Anonymoushttp://www.blogger.com/profile/12370852242386423523noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-5827705095990953133.post-22035421827311218222013-03-21T18:17:00.002-07:002013-03-21T18:17:45.425-07:00 The luck arches the closing ozone. <div style="color: #84b320; font-size: 20px; text-align: left;">
The luck arches the closing ozone.
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Anonymoushttp://www.blogger.com/profile/12370852242386423523noreply@blogger.comtag:blogger.com,1999:blog-5827705095990953133.post-5931671224017294472012-11-20T05:55:00.001-08:002012-11-20T05:55:09.407-08:00Alternative Financing Strategies In A Slow Market<div style="text-align: justify;">
The economy just struggles on. And, it is expected to continue at least until the next Presidential election is over and we set politics aside and get back to the real work.<br /><br />In the mean time, current financial market conditions will remain unchanged - meaning that small businesses, even those that are growing, will continue to have a hard time accessing capital.<br /><br />- Credit score requirements will trend higher precluding those without the most stellar score from the credit markets while continued economic setbacks of small business owners will push their scores in the opposite direction.<br /><br />- Positive cash flow requirements will play an even greater role in credit underwriting even while most small businesses are facing declining revenues.<br /><br />- And, collateral requirements will continue to trend higher; with values of 100%, 150% and even 200% or more.<br /><br />All bad news for business owners needing a business loan to stay float or to grow and innovate their companies through this turmoil.<br /><br />However, not all is lost to these entrepreneurs.<br /><br />Here are a couple of suggestions of raising money during this unending slow market:</div>
<a name='more'></a><br /><br />Leveraging Financial Assets:<br /><br />Most lenders just want to get repaid. Thus, they want to be assured that a future cash event (either ongoing cash flow or a single, future payment event) will materialize that will repay their loan with interest.<br /><br />Financial assets do just that. Example, if you invoice your customers, allowing then 10, 30 or more days to pay for products already shipped or services already renders, then that delayed payment period creates a future cash event that can be factored today for cash - cash to make payroll, pay suppliers or even to win that next job.<br /><br />Or, your business has already won that next job yet does not have the capital to purchase needed materials or labor to complete it. But, that order all ready in hand means that your customer will pay you as soon as the goods ship or the service begins. Again, a future cash event that can be factored for cash today - cash to actually complete that job and earn your profit margin.<br /><br />Trade Credit & Vendor Loans:<br /><br />If your company is seeking a business loan to just purchase materials or supplies, then turn to your partners (suppliers and vendors) for trade credit.<br /><br />It is also in their interest to keep your business alive and well (you are their customer after all). Know that if your company's revenue is slow, so is theirs. And, for them to stay in business and grow their organizations, they need all the customers they can keep (that means you).<br /><br />If you already have trade credit with your supplier, ask for better terms - terms that allow your business time to convert those goods into revenue of your own.<br /><br />Or, if you don't have terms with your suppliers, now is a great time to ask. Know that during this long-term economic slow period (since 2008) many suppliers have been offering credit terms to their customers as it not only benefits their clients but offers many benefits to them as well - like added revenue, increased sales and a customer base that is not in decline.<br /><br />The goal is to try and match the credit terms with your suppliers with the terms you offer your own customers. Thus, your business will not owe your suppliers until you have money coming in from your customers to pay those expenses.<br /><br />Or, if your business is purchasing new equipment or software from vendors, ask those vendors to finance that purchase.<br /><br />More and more companies are offering these types of services called vendor loans. They know it helps both parties.<br /><br />Some vendors will provide your company a business loan for the amount you need to purchase their products or services with the only caveat being that you use those funds to buy their offerings.<br /><br />You get what you need for your business and have to make payments just like you would with any other business loan and they keep you as a loyal customer who continues to buy their products.<br /><br />Friends and family & Local Investors:<br /><br />While the news may be trying to demonstrate that most people in this country are struggling day-to-day to make ends meet, it just isn't totally true.<br /><br />There are many people who still have some savings or disposable income and are looking for ways to earn better returns then banks and other investment options are offering.<br /><br />This means that your friends and family (or even the friends of your friends and family members) may have the ability to float your company a short-term business loan or even invest in your business for a little up-side potential.<br /><br />And, this source of capital might not be from just those people you know. There are other professionals right in your local community that may have some additional capital that they want to 1) earn a better return on or 2) want to give back to the community that has helped and supported them all these years.<br /><br />This means asking. Asking friends and family - they are the ones that know you and your business best. In some cases, they may have even been waiting for you to ask them.<br /><br />Or, get out in your community and network. Attend local events; join civic organizations or networking groups. Talk to everyone. Sell the merits of your business, sell the merits of your opportunity and sell the merits of your products. Get the word out. Then, ask for an investment or loan. After all, money is still money, no matter where it comes from.<br /><br />Your business just might be the exact opportunity that a local investor is looking for.<br /><br />While this slow economy is predicted to continue for some time, it does not mean that your business has to suffer for it.<br /><br />Put that entrepreneurial hat on and get creative in finding alternative ways to secure a business loan for your business in this sluggish market.<br /><br />Know that, when it is all said and done, there will be winners and loser. It is up to you to ensure that your business is in the winning column.<br />Anonymoushttp://www.blogger.com/profile/12370852242386423523noreply@blogger.comtag:blogger.com,1999:blog-5827705095990953133.post-78444249805055733912012-11-10T05:52:00.000-08:002012-11-20T05:53:47.841-08:00Are Cash Advances Smart Loan Alternatives For Businesses?<div style="text-align: justify;">
Many businesses are struggling in the current economy; due to the relentless recession and irresponsible lending habits of major lenders over the past few years, banks have tightened up on loan lending. Looking to avoid another market crash, such as that which has persisted for the past five years due to the banker's faulty home loans, government agencies have installed more regulations on lending practitioners. This is good news for the country, as it helps to protect home buyers and other borrowers from fraudulent or faulty loans, but it can be bad for business owners, who often need loans to keep their companies afloat.<br /><br />Business owners often rely on bank financing to cover costs, which may lead them to seek out loan alternatives when unable to secure a traditional loan, including high interest cash advances or other loans which can perpetuate a cycle of loan dependence. Often, business owners barely break even after all the bills are paid, potentially leading to the loss of one's business and possible bankruptcy. For business owners who can't obtain traditional loans, cash advances may provide the needed funds temporarily. However, they are not the only option.<br /><br />When a traditional bank loan is unattainable, the following list of alternative finance options for businesses might come in handy, including Merchant Cash Advances, Non-Bank Loans, Asset Based Lending, and Lease Backs:<br /><br />*Merchant cash advances providers loan a lump sum amount to a business and collect the repayment by means of abstracting a percentage from daily credit card sales until the loan plus a predetermined fee is paid in full. On the plus side, merchants do not have to pay back the fee in a lump sum, making payments more manageable. On the con side, these advances have high interest rates and often take a long time to pay off, accruing fees over the length of the loan.</div>
<a name='more'></a><br /><br />*Non-bank loans come in two primary forms: revenue based finance lending and non-profit community development financial institutions (CDFIs). A revenue based finance lender works almost like an investor: the lender provides a loan for partial ownership of a high yielding company, usually acquiring 1 to 5 % of said company. This type of loan could be a good option for established business with high gross margins, but will not work as well, if at all, for upstart companies. For smaller companies, CDFIs act as community bankers, providing loans for local businesses who do not qualify for bank loans. These loans have interest rates of 8 to 14 %, making them a decent option in comparison to cash advances.<br /><br />*Asset based lending is comparable to upscale business pawn shop lending: these lenders buy a business owner's assets, or invoices, at 80-90% of the value upfront and provide the borrower with the remaining 10-20% when the invoice is paid off. Due to the high interest rates and credit requirements associated with these loans, they may not be the best alternative to traditional bank loans.<br /><br />*Lease backs are useful for business with land, as in a lease back a business sells its real estate or equipment for cash and then leases the property back. This provides the business with instant cash, but increases monthly expenses as the lease must be paid over the course of ten to twenty-five years.<br />Anonymoushttp://www.blogger.com/profile/12370852242386423523noreply@blogger.comtag:blogger.com,1999:blog-5827705095990953133.post-59139948303794104602012-11-06T05:52:00.000-08:002012-11-20T05:52:31.760-08:00Your Business Exit Strategy - Strategic Planning<div style="text-align: justify;">
Many business owners spend years building up their companies to make them a success, but the hard work needed to run a business, and the day to day running of the company can mean that the financial health of the business takes main priority. This is to be expected, and it is important that business owners do keep an eye on their finances to ensure the smooth operating of their company, however problems can arise when it comes time to leave or retire and they realise they have spent no time planning their exit strategy.<br /><br />It is important to start planning your exit strategy early, maybe even if you are not planning to leave in the foreseeable future, having a plan in place will secure your financial future. It may be worth considering the various exit routes available to you, and to set out your objectives for your exit. Good management over several years will ensure that your business is in the best position and will add value allowing you to start your exit quickly when you feel the time is right.<br /><br />Planning your exit strategy over a longer period of time tends to work better as it is less expensive and less disruptive to the business. Also knowing what is in the pipeline gives confidence to your co-directors, employees, family and clients as they all know what to expect in the future.<br /><br />If you receive the proper advice before leaving you can substantially reduce the amount of tax you have to pay, leaving you with the maximum amount of cash possible, and ensuring you don't have to worry so much about your personal finances once you have left the company.</div>
<a name='more'></a><br /><br />Sometimes the biggest issues that arise are for those who own small or medium sized businesses, this is due to the fact that their exit can have a major impact on the company, particularly if they need to release assets. In these cases it is more important than ever to ensure a good exit plan has been put into place that will have as little impact on the business as possible.<br /><br />Some of the key questions you should ask yourself when planning your exit strategy are:<br /><br /> how do I intend to leave my business?<br /> Do I have an exit date in mind?<br /> When I leave will it cause the company to lose any of their customers?<br /> Can I lessen the impact of this on the company?<br /> What will my income & expenditure be once I have left<br /><br />As long as you can answer all the important questions and you have a clear exit strategy in mind you will find the impact of your exit on both yourself and the company will be lessened, helping everyone.<br />Anonymoushttp://www.blogger.com/profile/12370852242386423523noreply@blogger.comtag:blogger.com,1999:blog-5827705095990953133.post-69552321105570278422012-10-17T23:51:00.000-07:002012-11-08T23:52:06.683-08:00Achieving Business and Financial Success<div style="text-align: justify;">
Success in life and success in business are not the same thing. Of course, business and finance are huge and important components of our overall lives. You'd be a fool not to pay considerable attention to these areas, without compromising the other aspects of your life.<br /><br />THE CHALLENGE OF SUCCESS IN BUSINESS<br /><br />Being successful in business and finance is not a simple task, otherwise we'd all be rich. Unfortunately, this is not the case. There is no easy, or direct path to financial achievement. People find an infinite variety of ways to amass wealth and attain success in business and commerce. Others never find a way to progress financially. People can't decide on a career or enterprise, or how to progress once they're there. Some squander their money. Still others have setbacks, physical or mental challenges, and so forth.<br /><br />ADVICE FROM ONE WHO MADE IT<br /><br />H. L. Hunt was, by any objective measures, a financially successful individual. His business acumen was well-known. He made his fortune in the oil business, and by investing.<br /><br />When asked about his "success formula" Hunt offered some prescient advice. His approach is direct, but not as easy as it sounds. FIRST: "Decide what you want." SECOND: " Decide what you're willing to exchange for it." THIRD: "Establish your priorities, and go to work.</div>
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<br />Hunt's approach is definitely straight-forward. Let's think about it. If you complete the FIRST step, you'll probably be ahead of 90% of people, because few really know what they want. And the SECOND step represents another formidable hurdle, because, again, a majority will be unwilling to expend the effort and make the required sacrifices. The THIRD step is also tough. Getting started (and then maintaining your motivation, initiative, effort, enthusiasm, dedication, etc,) requires a strength of character and uncommon persistence.<br /><br />PUTTING IT INTO PRACTICE<br /><br />I recommend writing things down. It seems to make it more real, and you can always refer to it. But before you write it down, you'll need to do a lot of work THINKING. Serious THINKING. Deciding "what I want to be, when I grow up," is as challenging at fifty as it is at twenty. No one can do this for you. Your parents, friends, spouse, or teachers may try to guide you, but ultimately the decisions and responsibilities are yours. Also, nobody can determine your priorities, nor what you're willing to do - or give up - to get what you desire. And, after you decide if you're willing to "pay the price," can you continue for as long as it takes to achieve your objectives?<br /><br />Follow Hunt's formula, do the "prep" work, and if you believe you are capable of making the sacrifices and doggedly pursuing "what you want," put that commitment in writing and to work. Best of luck!</div>
Anonymoushttp://www.blogger.com/profile/12370852242386423523noreply@blogger.comtag:blogger.com,1999:blog-5827705095990953133.post-33060642366699490812012-10-16T23:46:00.000-07:002012-11-08T23:46:21.973-08:00Business University - Intellectual Hubs for Business and Finance Students<div style="text-align: justify;">
Finding a business university that meets all the needs of its students can be a difficult challenge for prospective undergraduates and postgraduates. Scholars with a natural flair and a passion to forge a career in business and finance will undoubtedly know that the City of London remains the intellectual and commercial hub of global finance.<br /><br />Studying at a London business university gives students versatility with some of the widest portfolios of BA and Masters programmes in Europe. London attracts students from all four corners of the globe, and its universities serve the needs of professionals and companies through management education and by stimulating research and debate on key issues facing international business and finance.<br /><br />Many London business universities focus on attracting the leaders of tomorrow into their undergraduate and Masters programmes, as well as some of the best international talent into MBA and PhD programmes.<br /><br />Research is a crucial factor in any teaching institution and prospective students should consider a business university that undertakes research of national and international significance to its students.<br /><br />The beauty of studying in London is that financial institutions have strong relationships with the city, creating a virtuous circle of learning. Students can benefit from the experience of business, and business benefits from the quality of a university's academic thinking and research.<a name='more'></a><br /><br />As a result of its business and commercial growth, London remains the most populous city and metropolitan area within the European Union. A London business university can provide a great balance between an enlightening education and the thrill of living in a city that's home to a diverse range of cultures, and religions, speaking over 300 different languages.<br /><br />Located in the heart of London's financial district, Cass Business School is a leading provider of business and management education.<br /><br />Our MBA is recognised globally as a market leader, we have the widest portfolio of Specialist Masters programmes (MSc) in Europe and our Business University Undergraduate School is one of the best in the UK. Ranked in the UK's top 10 business and management research schools, means we attract leading PhD students.</div>
Anonymoushttp://www.blogger.com/profile/12370852242386423523noreply@blogger.comtag:blogger.com,1999:blog-5827705095990953133.post-79699288081316537262012-10-11T23:49:00.000-07:002012-11-08T23:50:19.233-08:00Popular Business and Finance Magazine Subscription<div style="text-align: justify;">
In today's highly competitive business industry, subscribing to popular business and finance magazines are more important than ever before. These trade magazines can help you become updated with the current trends in your business niche. Whether you want new insights into your particular market or the current trends today in management, business and finance mags can surely help you. <br /><br />There are literally hundreds of business magazines. They vary in many aspects. Many Sites offer cheap subscriptions of the most popular business and finance magazines. This can provide you with unbelievably big discounts than when subscribing to the publisher itself, or even more savings than buying them in your local newsstand. <br /><br />But the main question now is, among these popular business mags, how do you know if you are making the right choice? Here are some tips to help you search for a good business magazine that is sure to benefit you and your business: <br /><br />1. Look for magazines that covers every aspect of your business. You may need to get more than one type of business and finance magazine. You may even use some other subscription when necessary. For example, if your target market are teens, you will find a teen magazine subscription useful as means of market research. You can use theoretical or management magazines to help you look for solutions when issues arise. Do not limit your resources when it comes to your business. Magazines provide lots of information that you cannot find elsewhere. <a name='more'></a><br /><br />2. Take advantage of free magazine subscriptions. There are free magazine subscriptions that publishers provide. However, they usually need to fill up an application form which requires you to describe your qualifications. When filling out the form, do not exaggerate and be as truthful as possible. Consider the possibility that the magazine publisher may deny your request, as these free subscriptions are only provided on a limited basis. <br /><br />3. Make sure that you make a good use of your business magazine subscription. Remember that popular business and finance magazines do not come cheap. Make the most use of it by reading from page to page. Even if an article is not quite related to your niche, take time to read it. You will be surprised that it can bring you information you didn't know before. Of course, make sure you do not order more business magazine subscriptions that you can read.</div>
Anonymoushttp://www.blogger.com/profile/12370852242386423523noreply@blogger.comtag:blogger.com,1999:blog-5827705095990953133.post-73621491402084293392012-10-04T23:48:00.000-07:002012-11-08T23:48:51.461-08:00Diversify Your Business Finance<div style="text-align: justify;">
Introduction<br /><br />The Government has announced a new initiative to help diversify business finance which will be led by UK industry experts from both the business and finance sectors.<br /><br />UK businesses still rely heavily on bank funding to help finance their business activities even though there are many alternative sources of funding available to them in today's ever changing financial marketplace.<br /><br />The Government wants to ensure, in light of recent and current banking reforms, that the flow of finance to businesses is maintained. Alternative sources of finance will be crucial to help businesses deliver the wider economic growth the UK economy needs.<br /><br />The panel of experts will seek to establish a framework of alternative finance sources by working with businesses and business investors, financial institutions and providers of alternative finance to coordinate and facilitate the availability of funding that businesses need.<br /><br />Bank lending<br /><br />Even though there has been a recorded increase in new lending from the largest banks this year many businesses are still unhappy with bank lending levels and how they have been treated by their banks.<br /><br />Tighter lending criteria, non-renewal of overdraft facilities and poor communication by the banks are the common problems cited by businesses as making their funding objectives difficult to achieve.</div>
<a name='more'></a><br /><br />Without the finance they need, UK businesses struggle to survive and grow, and so the UK economy does the same. This is why the Government is not only introducing schemes to increase bank lending but is also keen to encourage as much competition in the financial market as possible and provide a wide range of alternative sources of finance to UK businesses.<br /><br />Alternative finance<br /><br />There is already a wide range of alternative finance sources available to businesses.<br /><br />One of the biggest barriers to increasing the take up of these sources of finance is simply general awareness. New and emerging providers of alternative financial products do not have the branch infrastructure that makes for the efficient and effective distribution of their products.<br /><br />The other important factor here is that many owners and managers of small and medium sized businesses, which are the backbone of the UK economy, are unaware of the range of alternative finance available and where to find it.<br /><br />New methods of communication are required and it is hoped this will be a key objective of the Government's initiative.<br /><br />Invoice Finance<br /><br />Invoice finance is one of the most popular options in the alternative finance portfolio and has grown over the last fifteen years from about 13,000 companies using it in the UK to over 50,000 companies now.<br /><br />This extremely flexible method of business finance advances funds against unpaid sales invoices. There are variations within the invoice finance family of products which includes invoice factoring and invoice discounting.<br /><br />The invoice finance lenders will advance up to 95% against a company's unpaid sales invoices and use the sales ledger as security by taking assignation of the invoice and so the outstanding debt is effectively owned by them.<br /><br />When the invoice is paid by the company's customer the invoice finance company will pay over the balance of the invoice that has not been funded after deducting their fees. There is usually a charge for the facility and an interest charge for the amount of funding advanced.<br /><br />One of the main benefits of invoice finance is that the facility will grow as the business grows thus making it a very effective method of funding working capital.<br />Anonymoushttp://www.blogger.com/profile/12370852242386423523noreply@blogger.comtag:blogger.com,1999:blog-5827705095990953133.post-32817521877685531662012-09-08T23:44:00.000-07:002012-11-08T23:44:41.039-08:00Financial Management and Budgeting in Business<div style="text-align: justify;">
Importance of Financial Management<br /><br />Finance is a key functional area of business management. This area is commonly referred to as Financial Management. The term defines the achievement of key financial objectives by making investment and financial decisions. Essentially, it is the management of all the processes associated with the efficient acquisition and deployment of both short and long-term financial resources. Financial Management assists an organisation's management to reach its financial objectives such as the creation of wealth, solvency, liquidity, growth and return on investment achieved through a process of financial planning, control and decision-making.<br /><br />Financial Control<br /><br />Financial control consists of different strategies to manage finances necessary to achieve the primary purpose of every business; which is to earn profit. Budgets are the traditional financial control method and provide a measuring basis which performance can be assessed. By engaging in a yearly budgeting process a business can make plans and forecasts for the year ahead. Control action should be taken when actual performance appears not to be matching the outline of the budget. Therefore by monthly monitoring of expenses, controlling methods can be put into place when expenses becoming higher than figures stated in budget (such as spending cut backs or extra working hours). And by determining the reasons why figures do not match the yearly budget plan, a business can therefore make necessary plans for this not to occur in the future. Monthly monitoring of expenses is another example of a financial control. Such data includes cash balance, total wages costs and hours worked key sources of income, unusual or above budget expenditures.<br /><br />Three Main Financial Statements<br /><br />The 3 main financial statements necessary to analysis and improve on finance viability:<br /><br />1) Balance sheet - 'A statement of financial position that shows the assets of a business and the claims on those assets'<a name='more'></a><br /><br />2) Income Statement - 'A financial statement (also known as profit and loss account) that measures and reports the profit (or loss) the business has generated during a period.'<br /><br />3) The cash flow statement - 'A statement that shows the sources and uses of cash for a period'<br /><br />By analysing these three financial statements on a regular basis a business can proactively forecast problems or opportunities before they arise. The 3 main financial statements are also considered as financial controls as these statements are used to understand and interpret the financial conditions of a business as a means of management and control. The statements enable a business to set guidelines and policies that enable growth and business success. An annual Profit and Loss statement is considered the most important financial statement and UK businesses are legally required to lodge a Profit & Loss Account with Companies House. In regards to cash flow, cash inflows are payments for products or services and interest on savings and investments. Cash outflows are a combination of many things including purchasing stock, daily operating expenses, fixed assets and government taxes. A business is also required to produce a balance sheet annually for reporting purposes. It provides a report of assets or liabilities.<br /><br />Budgeting and Budgetary Control<br /><br />A budget as a qualified statement, for a defined period of time, which may include planned revenues, expenses, assets, liabilities and cash flows. It is a short-term plan of working towards financial objectives. There are several styles of budgeting, these styles include -<br /><br />* Fixed - does not allow for variations<br /><br />* Flexible - Adjusts or flexes<br /><br />* Continuous or rolling - continually amended<br /><br />* Zero-based - needs assessed<br /><br />* Incremental - uses previous budget with increment<br /><br />Budgets are necessary to provide a basis for control, helping identify short-term problems and promote forward thinking. However, there is a need for budgets to be adaptable if they become unrealistic due to sudden changes in the business environment. This is known as 'Flexing the Budget' (which simply means revising the budget).<br /><br />A variance report is required to indicate whether performance is below or above the budgeted level. It is the difference between the budgeted level of costs and revenue and the actual levels of costs and revenues also referred to as variance analysis. Budgets can also have a behavioural effect motivating the management team and staff to achieve better performance and help promote forward thinking.<br /><br />Effective Business Planning<br /><br />A business plan is made up of many elements but no business plan is complete without this financial information. For business planning to be effective, the budget and the three main financial statements (Profit & Loss, Balance Sheet and the cash flow statement) must be taken into consideration. A financial statement is the core of a business plan as they are used to identify various business strategies. Financial planning is interlinked with all elements of a business plan. Five key strategic plans interlinked with a budget (plan); 1) establishing mission and objectives, 2) undertaking a position analysis, 3) identifying and assess the strategy options, 4) selecting strategic options, 5) perform, review and control. By taking all of these elements into considering, a business can create an effective business plan containing financial data and projections.</div>
Anonymoushttp://www.blogger.com/profile/12370852242386423523noreply@blogger.comtag:blogger.com,1999:blog-5827705095990953133.post-7126708873475668802012-09-05T23:42:00.000-07:002012-11-08T23:43:11.138-08:00Five Financial Management Tips For Small Businesses<div style="text-align: justify;">
Many small business owners are driven by entrepreneurial inspiration to start their own companies. Small businesses drive new jobs and innovative ideas. However, for all the "pros" which accompany running your own business - the thrill of bringing a new idea to market, fulfilling a goal, flexible schedules - there are also challenges. Owning the business may be the simple part. Running it smoothly and profitably often can prove difficult. Following are five financial management tips that should assist in running your small business more effectively so that you can enjoy all the "pros" that influenced the decision to own a small business in the first place.<br /><br />1 Develop a Budget - This is critical to the success of any business. A budget that lists your projected revenue and expenses serves as a road map in guiding business decisions and making sure you carefully consider financial decisions with the "big picture" in mind. When you create a budget, you can see the cash inflows and outflows. A budget functions as a financial barometer, allowing you to project accordingly, optimize and manage cash flow, as well as anticipate future financial needs.<br /><br />2 Stay Abreast of Your Financials - As a small business owner, implement a routine practice of reviewing your financial reports. Staying abreast of your financials also equates to maintaining up-to-date accounting and bookkeeping records, as well as managing your expenses, payables and receivables. Timely and accurate access to updated financials allows you to make informed decisions quickly that could significantly impact your company's profitability.</div>
<a name='more'></a><br /><br />3 Retain the Expertise You Need - Recognize that running a small company or start-up does not require you to single handedly perform every function associated with that company. Focus your attention and efforts on growing your business. Establish partnerships with companies or contractors who possess expertise in areas at which you are not adept or those to whom you can outsource non-core tasks. This will be more efficient for you in the long run, as well as allow you to avoid costly mistakes that could occur by performing functions at which you have no experience. Leverage partnerships for CFO, CMO, IT or bookkeeping services to provide you with scalable access to expertise when you need it.<br /><br />4 Invest in Technology - Recognize that investing in technology can significantly impact the infrastructure of a small business making it operationally more efficient. Use technology to automate processes wherever possible to reduce manual functions that take employee focus off of value added services. Accounting systems and software programs that assist with payroll, data entry or time and billing are examples of functions that can be automated with investments in technology.<br /><br />5 Anticipate Changes - Above all, embrace the ability to be flexible and make pivotal decisions that can positively impact your business. One of the biggest "pros" of running a small business as well partnering with a small business is the ability to change directions quickly when deemed necessary. Anticipate and plan for change to remain competitive in the market.<br />Anonymoushttp://www.blogger.com/profile/12370852242386423523noreply@blogger.com