Jan 142012

Do you really know how much it costs to start a small business?

While starting a small business can be an exciting time it can also be an expensive time too. If you’re starting from scratch you need to have a good idea of what costs are going to come your way and make sure that you can cover them all, plus extra to keep you going for the first few months (your working capital). Continue reading »

Dec 162011

Working out the true cost of selling something is difficult – but vital

It’s vital to survival that the cost of your products is known and controlled.  If you don’t know how much it costs you to produce then you can’t be sure that you’re making a profit; many companies have found out the hard way that they have got their costing policies wrong.  Here’s how to avoid that happening to you. Continue reading »

Dec 162011

Cash is king – here’s how to keep it on the throne

Cash is the blood of a business – without it you die.  Cashflow is the movement of that life-giving blood into and out of the business; if there’s more flowing out than in then you’re in big trouble.  Many firms go under despite being profitable simply because they did not stay in control of their cashflow.  One of the key ways to take control of cashflow is to take control of your trading terms.  Here are a couple of things to think about that might help you stay in control. Continue reading »

Dec 162011

Waste not, want not

It’s very easy in a business to focus on the big stuff and forget about the impact the small stuff has.  But it’s the small stuff that can really end up making a difference to the overall success of your business.  However, getting the message across to the team can sometimes be difficult. Continue reading »

Dec 162011

Profit is vanity, cash is sanity

It’s an unfortunate fact that a lot of profitable businesses go under because they run out of money.  But how can that be so, you ask.  Well, it’s because they don’t understand cash flow and cash flow forecasting and that profit and cash flow are two different things. Continue reading »

Dec 152011

1. Don’t panic.  2 Follow this advice

One of the biggest causes of business failure is a lack of cashflow.  It might seem strange but many profitable businesses fail.  Why?  Because they didn’t manage the flow of cash into and out of the business.  This is especially acute when a business is going through a period of growth.  Here are a few ways to avoid becoming another statistic. Continue reading »

Dec 142011

Is it better that your small business has a loan or has shareholders?

Starting a small business can be expensive.  There may be a requirement for office space, stock will usually be required and there are ‘hidden’ costs such as fuel for the car to go out marketing the business.  Many business owners will use savings to cover some of the early costs but most businesses will need quite a large lump of cash to keep them going for the first 6-12 months while they become established.  The two main ways of getting this cash is through debt or equity.  Let’s look at the good and bad points of each. Continue reading »