Kicking off a small business idea and sustaining the same is not an easy task. From drafting a blueprint to getting things off the ground, meticulous planning is required. Apart from a solid business plan, having deep pockets becomes a catalyst for unperturbed business operations. However, maintaining adequate cash flow becomes a challenge and financial […]
Cash Flow
Alternative Funding: What Can My Business Get?
Running and maintaining a successful business is hard work. It is exciting starting and working on a new venture, however, keeping things ticking over requires constant effort and even more importantly, continuous financial backing. Cash is king and having a healthy flow of cash throughout a business is essential. Even with the best business models, […]
Don’t Forget These 4 Essentials for Efficient Cash Flow Forecasting
A businesses cash flow forecast can help businesses to predict the profitability of the business to help pay for outgoings and plan for the future. It’s a vital financial tool that can help to understand business performance and meet costs. Whilst it can be relatively straight forward to put together, cash flow forecasting can also […]
7 Pitfalls to Watch Out for When Funding Your Small Business
Remember that you’re going to make mistakes while running your business. It’s okay to make a few mistakes. But most financial mistakes are the results of lack of financial knowledge or poor planning. Here are the most common pitfalls to avoid when securing funding for your small business. Choosing the Wrong Business Partner Not choosing […]
5 Keys to Minimizing the Burn Rate for Your Startup
Cash flow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors. Desperate entrepreneurs […]
What’s the Most Important Part of Cash Flow? Invoice Terms
Owning your own business provides a rewarding experience. As your own boss, you can set your hours and your priorities. You are also free to pursue the work that you find rewarding and fulfilling. But no matter how much you love what you do, collecting your pay remains a necessity. After all, if you don’t […]
7 Simple Ways to Ensure You Get Paid on Time
It’s no secret that running a business is tough. You knew it long before you even started down this path. You’ve heard all the stats before—over 20% of all small businesses fail within the first year, and more than half don’t make it to five years—and everyone you spend any time with at all feels […]
Prepayment Penalties: When the Early Bird Doesn’t Get the Worm
It’s every small business owner’s dream: you took out a business loan to start or expand your small business, and it really paid off. Business is booming, cash is flowing, and you suddenly find yourself in the coveted position of being able to pay off your loan far before you anticipated. While you’ve always wanted […]
Here’s a Rule for Companies with Outstanding Loans
Here is one that is so important to the continued health of a growing company that it cannot be overstated. It’s a bit complex for novices. But hang in there as I explain a bit about accounting classification of assets and liabilities. Differences between types of assets and liabilities First, let’s be sure we know […]
10 Common Mistakes with Startup Financial Projections
I was glad to be asked about common mistakes with financial projections. I read about 100 business plans a year for angel investment and business plan competitions. Most show unrealistic profitability. More people doing business plans should realize that most startups are unprofitable at the beginning; and that high growth correlates with losses, not profits. […]
