Everybody understands that starting up a business from scratch is not a simple process or an easy challenge to take on. Regardless of how lofty your ambitions are or whether you’re aiming to establish yourself as a sole trader or as a the boss of a burgeoning new enterprise, finding access to initial and early-stage sources of finance is a vitally important step along the way towards sustainability and success.
Here’s a look at some of the most commonplace and most viable routes to finance currently available to startup businesses. (more…)
Christmas can be a challenging time for many businesses, whether it’s your busiest time of year or a seasonal slump in trading.
Either way, lots of small businesses find that short-term finance can provide the boost needed to cover short term cash flow issues. Here are 5 funding options that can do this for you; (more…)
Dealing with late payment can be tricky for small and medium sized businesses. Handle it wrong and a customer could be lost, ignore the issue and it can stifle business growth, have a huge impact on cash flow and even cause a company to go bust.
Staggering figures published in a government paper, revealed that small businesses spend around 130 hours a year chasing late payments, equating to an average cost of £1,500 per business.
The problem is endemic with two thirds of SMEs suffering according to research by the IOD, but follow this 12-Step plan and you’ll be able to minimise the damage late payment causes your business.
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If you have approached your bank and found it difficult to secure the funds your business requires, you’re in good company. Banks are declining up to 50% of loan requests from some smaller businesses.
Banks’ lending decisions have very little to do with you or the prospects of your business. And their outdated processes and high costs of capital make it difficult for them to lend to smaller businesses.
Business owners are also being frustrated by the inability of banks to provide flexible forms of credit to businesses. This is highlighted by the fact that the availability of business overdrafts, long a favorite tool for businesses to smooth cash flow, has shrunk by more than 30%.
So where else can you get funding for your business?
When you are starting out in business, you need to quickly grasp that the three key factors that determine a company’s financial success, or failure, are:
- Control of costs
- Cash management
Two out of three simply won’t work – you need to have complete control over these three crucial aspects, otherwise your chances of succeeding in business will be very limited. (more…)
If you are having problems paying HMRC your business taxes, you may be able to agree a Time to Pay arrangement so you can pay the tax over a longer period of time.
In this concise guide, we walk you through HMRC’s Time to Pay Arrangements, explain what you should understand before contacting HMRC, and share some practical tips on how to make the most of Time to Pay;
Starting up and sustaining a company is a tough challenge for even the most gifted of entrepreneurs or the brains behind the business world’s biggest and best ideas. Within that context, the margins for error tend to be slim, particularly when it comes to financial matters and the business of balancing your books.
Here are some of the best options potentially available to you if your company is facing a financial squeeze and is running out of cash, along with some ideas on how to approach the turnaround process.
When you are starting a new business, you will most likely need to produce a cashflow forecast.
If you’re looking to raise money, from either a bank loan or outside investors, a cash flow will be one of the financial forecasts that you will need to produce for prospective lenders and investors.
As your business grows, a cash flow forecast becomes an increasingly important tool to help you manage the business and to avoid any sudden cash flow problems.
We all therefore appreciate the importance of a cash flow forecast, but are there any trade secrets to doing it better?
Here are some top tips to help you produce a better, more accurate cash flow forecast first time, and how you can use it to give your business a commercial advantage.
Cash is the lifeblood of any business. And in the first few years of your start-up, the ability to get cash into your bank account faster than it goes out again will be one of the main measures of whether it is a viable business.
Every year, many small businesses fail, simply because they run out of cash. Even profitable businesses can be brought down by cash flow problems caused by slow-paying customers.
Without clear credit control procedures to ensure your customers pay you promptly, your business won’t be able to grow and could jeopardise your ability to pay your own bills in a timely manner. That’s the start of a slippery slope that can end in the destruction of years of hard work.
Don’t let your business die this way. Here’s how to build good credit control procedures into your operations from day one, with ByteStart’s seven ways to make sure your customers pay you on time, every time. (more…)
The single biggest cause of small business failure in the UK is poor cash flow management, most often brought on by late payment issues. It’s therefore vitally important that you do all you can to ensure that your customers pay you on time.
Here are 7 things a small or start-up business (or any organisation for that matter) can do to ensure that late payment issues do not threaten the viability of their operation:
A recent survey has found that small businesses spend an average 130 hours each year chasing late payments, and wait 30 days beyond the contractually agreed terms before payment is actually received.
Cash flow is the most important thing in your business – more important even than profit. If you imagine cash to be the blood cells of a business, then cash flow is the flow of blood, keeping the business alive.
A healthy person will quickly die without blood. And a healthy profitable business will quickly die if it runs out of cash.
If you’ve always been employed by someone else, managing your own business finances will be an interesting new experience for you!
Being a freelancer has many advantages (especially compared to being a wage slave employee), but one big disadvantage.
And that’s the fact that you are your business: you have to do everything in it. Which includes chasing payments owed to you by clients.
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.
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.
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.
Some experts believe that the UK economy is already nearing a recession, whereas others believe the “credit crunch” has been overblown by the media. Either way, many small business people have already started to look at how they can survive a downturn. Here are some tips from the Bytestart team.