How can I forecast my cash flow when the business doesn’t even exist yet?
That’s a question most new startups wrestle with as they are planning their new business. It may seem to some to be an impossible task, so we asked Robin Booth of Brixx.com to show how you can produce a cash flow forecast for a new business. (more…)
The only thing you can be certain of in business is that things will change. This might be a slow change or a sudden sharp one, but either way, it’s important to prepare for the future.
These changes are a lot easier to predict if you are the instigator of the change. You may decide to take on a partner, move location, change the way you sell, change what you sell, or even sell the business itself. (more…)
“Any time is a good time to start a company“, so said renowned American angel investor Ron Conway. That may be true, but how easy is it to find the necessary funding?
The answer largely depends on your understanding of how fundraising should be done. (more…)
In a previous article, I described the differences between short term and long term planning. A challenge to both types of planning is how much detail to go into.
I’ve seen accountants trying to create perfect 30 year financial models based on the level of detail they use for tracking the day to day running of the business.
Needless to say, they quickly find an already large job turning into a mountain of work. When the time comes to update the plan (1-12 times/year depending on the organisation) the battle to ensure accurate detail in the plan needs to be taken up again.
So how do you get the right level of planning for your business? (more…)
Planning ahead is important. It helps you to understand where you want to get to and how you’re going to get there.
However, financial planning can be a bit of a mystery for many small business owners. So to help demystify it, we asked Robin Booth of Brixx.com to answer the questions business owners often ask about financial planning;
Financial reports are standardised measures of a business’ financial health. They are a necessity for publicly traded companies, but this does not mean that they are only useful for large organisations.
Each of the various types of financial reports in this article takes a different view of the business. These reports can seem intimidating at first, but you don’t need to be an accountant to understand them. With a little knowledge you’ll find new ways to look at and analyse your business.
To help you get a fresh insight into your business, I’m going to show you what the purpose of each financial report is, and the kind of information it can reveal about your business. (more…)
Understanding the numbers of your business is crucial to your success. If you have a grasp of key figures, and have an understanding of your business’ accounts you are more likely to make good business decisions.
Knowing your way around business accounts isn’t something that comes naturally to everyone, but if you are serious about your start-up, investing some time and effort to learn the accounting basics will pay dividends for all business owners.
It certainly did for Paul Oberschneider, who after facing up to his financial shortfalls turned his life around to become a successful entrepreneur, angel investor and author. Here, Paul shows the value of knowing the numbers behind your business; (more…)
When you are launching a new business, it’s fair to say that planning your finances isn’t the most exciting aspect of of being a startup. However, it is a crucial part of understanding whether your business has a chance of succeeding
And the good news is that there are now dedicated software, tools and apps that can quickly and easily produce financial forecasts for you.
So to help you understand more about how planning your finances can help your startup succeed, we asked Robin Booth of Brixx.com to share his experience with us;