Category Finance

Q & A: What are successful cost-cutting solutions in small business?

Let me give you some pointers here, but please remember you can always do more on the cost-cutting front in any small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants.... Or have it done on a results basis, doesn't cost you time and gets you money back.Do credit control - get your money in lower your bank overdraft cost and charges.This is only a short list of what you can do, but it's a start.

Small Business Failure – Reason: Funding

if you are don't start a business, because you are not ready and whatever you do do not borrow any money from anyone.If you read this and think this is all b*** s*** - and you may be right, of course - let me know why you think you need to borrow money? Maybe we could come up with an idea that would allow you start your small business, without having to borrow money and loosing some of the control in your small business.You can see other reasons for small business and personal business, like contractors, freelancer, self-employed, sole-trader and virtual assistants failures in my Health Check Category, if you can add to this list please do so, I would welcome your comments.

Small Business Infrastructure For Business Start-Up.

WinWeb On-Demand Software Solutions - Anywhere At Anytime.AccountsOffice and OnlineOffice are our two software offerings, which are based on the SaaS - Software as a Services model, to allow for the following key business benefits:• tight inclusion of business advisors from the start,• cultivating outsourcing techniques at the outset, i.e. virtual assistants,• no IT knowledge needed and hassle free operation,• real-time multi-user access from anywhere, increasing mobility.2.... WinWeb Live - Networking Community for Small Business Only.To foster collaboration and outsourcing we have expanded our WinWeb Live™ offering to allow for small business community networking - thus enabling the business owner to make decisions about his / her current needs, with the following benefits:• timeshare virtual assistants for professional results,• offer contracts of work to contractors on a case-by-case basis, • promote the business to a large audience or even locally,• find new work and contracts online4.

Cost Cutting for Small Business – Payment Terms

There are two ways to get better payment terms from your suppliers - make sure you know what the pricing is and negotiate the payment terms last, without warning. Most businesses do not expect small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal businesses to negotiate payment terms, so you have the element of surprise on your side - and it makes you look more professional.Firstly there is the extended payment term, of 60, 90 and 180 days - see if your supplier will allow any of those terms.

Small Business Checklist: Business Costing

If you have then you must keep up-dating your costing every few month, as they will change as the business grow and changes. Here are a few things to look out for: Yearly costs - like insurance, spread them over 12 month and add them to your monthly cost estimate.Bank charges - easy to overlook, you may notice your banker never talks about these, check an compare them.Fixed costs - rent, rates, utilities bills, make sure you add these to your monthly out goings.Time - do you know where and on what all the time in your business is spent - you should - time is money.Bad debts - look at your past performance, come up with an average monthly figure and mark your products and services up accordingly.Buying - keep control of your spending, make one person sign off on all purchases, ideally that person should be you.Keep up to date - update your cost sheet on a regular basis.Mark-up - make sure you review your mark-up on a regular basis to protect your margins.Budget - create a budget and put it in your cash-flow.Cash-flow - compare your cash-flow fore-cast with the actual numbers on a regular basis and learn from it, it's not about being spot on, but about knowing what happened so you can control it.The more you know about where your money goes, the easier it is to figure out how to optimise your capital usage for maximum business benefit.Many small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal businesses, fold because they don't look after the money.For more of my checklists see the Small Business Checklists category and as always please add to my list with your comments, tell us what works for you.

Private Equity and Small Business

BCC director general David Frost says, "While the BCC recognizes the advantages private equity managers can take of capital gains taper relief to pay lower rates of tax, we worry that any knee jerk changes could have serious implications for the entrepreneurial culture embedded within our membership."... TUC general secretary Brendan Barber says, it wants the Treasury to review the tax paid by private equity investors, and calls into question the ease with which the super-rich can claim non-domiciled tax status.The government policy with regard to Private Equity will have a deep impact on the manner in which business start-ups work and SMBs need to pay keen attention to it.

Want to waste some more time before you start your business?

Remember one of the main reasons that many small businesses across a globe close down is that they did not anticipate the cash or finance they would require to get their business up and running and give it a fair chance or to put it more plainly - they simply run out of money.It is important to understand the cash flow in the business and hence you must have an accounting system with integrated cash-flow forecasting in place, that does away with the need to pen down expenses and credits and allows you to go through your financial details in a comprehensive manner.... I would do a SWOT analysis, SWOTs are:Strengths: attributes of the business, products or services that are helpful to achieving the objective.Weaknesses: attributes of the business, products or services that are harmful to achieving the objective.Opportunities: external conditions that are helpful to achieving the objective.Threats: external conditions that are harmful to achieving the objective.I also add a little list of what I want to achieve with my business, no more then five points each.

Watch out, watch out, the taxman’s about

According to recent reports tax inspectors are being offered financial incentives, of up to £2,000, to encourage them to collect more tax. According to a recent article in the Timesonline, tax compliance teams throughout the country have been told to increase the amount of tax that they recover, by one quarter in 2007. The fear…

Book-keeping requirements – Start Up Guides – Part 7

Okay, I know this is the least favorite part of running your own business, having to keep ‘the books’. As a practicing accountant I can also say it is my least favorite part when a client turns up with records that are in a mess, and as a result of sorting this mess out, I…

Cash planning and forecasting – Start Up Guides – Part 4

I am sure you have all heard the expression CASH IS KING; well this has never been truer than in business.  The lifeblood of any business is its ability to collect its debts and pay its bills, employees and ultimately you as the owner. There are many small businesses that are profitable, but they can…

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