Posts Tagged ‘Financial Management’
Bad Business Practice: 5 Things Entrepreneurs Do Wrong
When entrepreneurs hang out their shingle and open their doors for the first time, their heads are bursting with pressure. They are pulled in many directions and pushed by many factors. Self-employed though they may be, they find themselves answering to agencies, vendors, and customers. Those first days can shape the business’s direction, and too…
Read More4 Keys to Successful Business Budget Management
Nothing about starting your own company is easy. Thankfully, when it’s just you and your partner, it’s fairly simple to monitor your spending and keep your budget in check. You’ll reach a point though where one person (you) clearing every expense is no longer efficient or feasible. It’s important to empower your leadership team to…
Read MoreCan Business Failure Damage Your Personal Finances?
This is a question often asked by entrepreneurs, and the short answer is maybe. The longer answer is that it depends on your circumstances and the type of finance you take out. If you’re a sole trader or member of a non-limited liability partnership, of course, then it’s an unequivocal yes—you are personally responsible for…
Read MoreWhy Every Business Owner Should Have a Rainy Day Fund
Even if trading is very successful for your business, you can never be too sure of what dangers lie ahead. If your sales begin to dry up, running costs skyrocket or an unexpected expense messes up your balance sheets, it pays to have a little insurance. To weather a coming financial storm, consider setting up…
Read MoreDon’t Ignore the Human Factor When Managing Your Business Assets
Asset management can be an overwhelming process, one that demands constant attention regardless of business size or shares. No company is an island, but the summation of accumulated assets. As businesses begin to grow, mounting resources like finance, branding and buildings begin to falter if they are deprived of proper management. Consequently, you need to…
Read MoreFinancial Freedom is Not Just About Wealth
What does financial freedom mean to you? Is it the ability to work less so you can play more? The freedom to do what you want, when you want? Or just not having to worry about your finances. Financial freedom is all of these things and more. It’s the holy grail of financial situations. It…
Read MoreWhy Do We Need Financial Forecasts?
Business owners and managers do financial forecasting to enhance management. Anticipate essential flows of money to manage them better. Forecasting is a necessary first step towards managing plan vs. actual results, which means course corrections. It’s like steering a business. A Quick Example Consider this simple illustration: You can’t identify changes in flow if you…
Read MoreCan You Pass the Retail Math Test?
According to The Small Business Administration, only about half of new businesses make it to their fifth anniversary and beyond. Factors that contribute to the failure rate can range from indirect influences, such as poor location and poor customer experience, to direct financial components, such as lack of profits and poor fiscal management. While you can…
Read MoreIs Your Business Bleeding Cash? Here is Your First Aid
Sometimes we find we are cash strapped regardless of how business is booming. In fact, you can have a very successful business go under simply because it is bleeding to death. Cash is essential to the day to day running of a business, and unfortunately, revenue does not always equal cash. This means the books…
Read MoreWhat Do Business Plan Financials Look Like?
People often ask: What do business plan financials look like? You can get away with a sales forecast, spending budget, and cash flow plan. That’s enough for actually running your startup. It’s the essential numbers in a lean business plan. If you want to do it right you take it further and present projected (also called Pro Forma)…
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