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How to fund your business

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Top 10 business finance tips

November 16, 2011

Here are some Bytestart tips on how to keep on top of your business finance, based on our experience of running small businesses over the past 15 years.
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Angel investors can be a lifesaver for a small enterprise – not only can they supply capital investment, but they often have years of valuable experience to offer to a business.
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Many businesses will need to raise funds at some time – either at the start-up stage, or to fund ongoing expansion. With credit currently in short supply and the possibility of a ‘double dip recession’ a possibility in 2012, here is an overview of the various options open to small businesses looking to raise funds.
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Unpredictable cash flow can be one of the most common barriers to growth.

As raw material and product costs fluctuate and you strive to get paid on time by customers, confidence that you have access to funds is crucial to maintaining stability and achieving future success in your business.
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If you’ve got a business headache right now, there’s a pretty good chance it’s to do with clients owing you money.

It’s almost as if the economic downturn has become a prime opportunity for anyone who fancies improving their own cash flow to help themselves to better credit terms from their suppliers… but without asking permission.

That has a knock on effect right down the line. And it’s no wonder that small, cash poor companies at the bottom of the chain are the ones that suffer the most.
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With late payment problems a constant burden for small business owners, we look at the most common delaying tactics used by customers and clients, and how you should react to late payment excuses.
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As late payment problems consider to plague small businesses, we have teamed up with a leading debt recovery service to ensure that our visitors to help ensure that their invoices are paid.
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Cash is the life blood of any business. And in the first couple of years of your new venture, the ability to get cash into your bank account faster than it goes out again will be one of the main measures of it being a viable business. Even more so during tough economic times.
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If you’re doing well enough that your business is growing rapidly – and there are plenty of businesses achieving that no matter what you read in the media right now – then you may find yourself in a unique financial situation.
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Cashflow can often be a problem for small and growing businesses. Here we examine some possible solutions to improving your cashflow, Invoice Finance and Factoring.
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If you imagine cash to be the blood cells of a business, then cash flow is the rush of blood, keeping the business alive.

Just as the heart pumps blood around the body so it can deliver vital oxygen; cash delivers important resources to every part of a business.

Cash flow is the most important thing in your business – more important even than profit.
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Now we are in the middle of an economic downturn, one of the most important things small companies should do is to keep a firm control on their cash flow.
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The lifeblood of any business is cash. You need good cash flow to keep your business viable. In some ways it’s more important than turning a profit – it’s not unheard of for profitable businesses to go under, just because they ran out of cash. There are plenty of examples of this scenario playing out in the current economic climate.
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Good cashflow management should be one of the most important priorities for businesses of any size. As has been so brutally demonstrated in recent months, it is possible for perfectly solvent companies to become unsustainable if cashflow becomes a problem.
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Whatever your business does, the purpose of it is simple: to do it at a profit.

That’s the whole point of business. Even if you run a not for profit organisation, you still need to make a profit to reinvest (or at the very least break even).
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If a stranger walked up to you and asked to borrow £100 on the spot with a promise that you would be paid back in 30 days, would you oblige? Thought not. What about repayment and the implications if it failed to materialise? Despite these obvious risks, many organisations need to do business this way.
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Small companies, who are more vulnerable than their larger rivals to the banking credit squeeze, can take some simple measures to reduce cash flow problems and to cut out the risk of bad debts, according to a national accountancy group.
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During economic downturns, one of the main reasons why businesses go under is because they run out of cash. However sound your business is in other ways, successful cashflow management should be your main priority with a recession looking more likely. Here are some key suggestions to help improve your cashflow:
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While it may be tempting to ignore business debt, it could turn out to be the worst thing you could do. There are many avenues open to you to resolve debt-related problems. So, where do you start?
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How to survive a recession

October 8, 2011

In reality, most of us already know how to solve our problems; we just need someone else to tell us and focus us in on them. Just ask any consulting company and I am sure you will find that a percentage of what they tell you is what you already know, but they will most probably charge you a lot to tell you.
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