The goal is for you to achieve financial freedom

  Whether your business is experiencing sudden growth or financially struggling, it is crucial to manage your cash flow effectively. Cash flow gaps or being unable to access extra funds can put a real strain on a business. However, there are lending options available to businesses that can help with different cash flow needs. Before considering lending options, businesses should draft a cash-flow projection to predict their sales and expenses such as cash in, monthly loan repayments, stock levels, set-up costs, and fixed and variable expenses. Cash flow forecasts can help to prepare for best and worst-case scenarios while allocating what times of the year extra cash are needed. To best meet your cash flow requirements, lending might be necessary. The lending option chosen should meet your business’s needs. For example, a business credit card may be appropriate for immediate purchases and paying off smaller bills. Alternatively, a business overdraft is more suitable for larger, more fre

  Without profits and positive cash flow, a business is going to struggle to survive. This is why cash flow strategies should be taken seriously. Aim for long term financial stability When setting finance and cash flow goals for the business it is important to aim for long term stability.  Businesses should realistically assess how and when it wants to reach its long term goals. Don’t forget to consider customers who allow purchases on credit as it will help in forecasting how much cash is coming into the business and whether it will be enough to cover expenses. Profit first and growth later Businesses should aim to increase profits in the present and use them to grow the business in the future. Approaching it the other way around isn’t always a good idea, especially for start-up companies. Be aware of timing Businesses need to be aware of exactly when money is coming in and when it is going out. Although owners may not be directly responsible for the accounting side of the business, t

  If the three most important things in real estate are "location, location, location," the first three rules of business are "cash, cash, cash." It is necessary to be profitable, but "profit" is a number that shows up on your accounts at the end of the year; cash is the money you have in the bank. In a small business, it is cash that determines whether you can pay your bills. Businesses can't get money in unless they get their invoices out. However, many business people delay sending out their bills. This may be because they feel uncomfortable asking someone for money, afraid of being challenged on how much they’ve billed, or just too busy working to bill for it. The longer you wait to send out your invoices, the greater the chance you won't get paid.   No matter what business you're in, you're going to have a lag between outgo and income. If you're a consultant, you have to pay for your phone, stationery, marketing materials, and rent

  Unrealistic budgets, unnecessary costs or simply ignoring debt payments are three of the leading causes of small business failures due to debt. Even though borrowing money can be a sensible option, borrowing large amounts of money without having the sufficient capacity to return it can be dangerous. Business debt is easy to get into and difficult to get out of. But it is possible for businesses who are chained to debt to overcome their problems. Here are some ideas to help accomplish that. Think ahead Businesses should calculate their debt cover ratio before considering borrowing money. The ratio can provide precise insights into the amount of money needed, interest rates and the terms. An owner will then be able to tell how easily they will be able to pay it off before borrowing. Request lower interest rates Businesses who have a good credit score and relationship with their bank may consider asking for lower interest rates. Lowering rates by only one or two percent can make dealing

  A small business owner’s livelihood depends on being paid the right amount and at the right time. Owners who put in the hard work to do the best job possible for their clients also deserve to be paid for every minute they work and every expense they collect. But even the most diligent owners can occasionally make the mistake of forgetting to include particular fees when billing customers. Make sure you don’t forget to include the below expenses in your next invoice to keep your cash flow as solid as a rock. Consulting fees Before undertaking a project or entering an agreement with a new client, it is likely that there will be a certain amount of time spent communicating the layout and estimated costs of the project. While some businesses offer this initial consultation for free, it is important to place a value on that time upfront after the initial meeting to avoid spending hours with this customer at the expense of others after entering the agreement. Travel costs Any travel requir

  Those who produce some form of assessable income at home or incur expenses from using that home as a workplace can claim for expenses and tax deductions. Individuals can claim deductions for their home if it is used for income earning activities but isn't a place of business, or if it is being used as the main place of business. The tax implications vary depending on which of these circumstances applies to an individual. Expenses individuals can claim generally fall into the following categories: Depreciation on equipment: Deductions can be made for depreciating items like electrical tools and devices, desks, computers or chairs. Those who use the depreciating asset solely for business purposes can claim a full deduction for the decline in value. If individuals also qualify as a "small business entity" (make less than $2 million a year turnover), they can immediately write off most depreciating assets that cost less than $1,000. Using the depreciating asset for non-busi

  Business owners who are fortunate enough to have a bank manager must understand the importance of maintaining a good relationship with that person. This person is a business owner's best advocate in determining how the bank sees the business. Below are three tips to keeping the relationship with your banker a strong and happy one. 1. Keep your banker fully informed Although it can be time-consuming keeping your banker up to date on everything that is happening in your business and the industry in general, the investment is definitely worth it in the long run. Use the principle of ‘more is better’ when working out how much information to provide. 2. Deliver on your commitments Your credibility with your banker is easy to lose and hard to regain. Failing to deliver on commitments is detrimental to your credibility, so it is an owner's responsibility to deliver on what they promise. Those who meet their obligations rarely get into trouble. 3. Remember to give good news as well a

  It is easy to forget about the cost of a business's energy consumption when you’re kept busy managing the day-to-day tasks of running the business. But with the growing rate of electricity prices, it is vital for business owners to pay closer attention to their energy costs to prevent losing money. The cost of energy is rarely included in a business’s budget, even though electricity, water and gas can all be costly business utilities. And when owners simply pay the bills instead of regularly reviewing energy costs, it can be quite a surprise when working out how all these things can add up. However, there are many simple and efficient energy saving tips that every business can implement to achieve better results in the long term. Below are five ideas to get you thinking: Switch to LED lighting, or use lighting controls like dimmers and timers to help cut costs and become more energy efficient. Establish energy practices within the business so staff can become more energy efficien

  It can only take one or two late payments from customers to turn a business’s positive cash flow into a negative one. Maintaining positive cash flow can be a struggle for many businesses, but setting realistic goals for cash flow management can help make a business profitable and generate enough cash to offset monthly expenses. Below are three cash flow goals every small business should be aiming for: Pay attention to margins : Even though margins vary by industry, there are things an owner can do to ensure theirs is healthy. Controlling the cost of materials, labour, and setting the right price point are three ways of managing a business’s margins. Have finances in reserve:  Business owners should plan to have enough cash to cover at least two to four weeks of business expenses. It is always a good idea to aim for a cushion of 90 days to cover any emergencies like illness, natural disasters or market fluctuations. Avoid debt:  It may be an obvious one, but owners with debt need to t

Are you sick and tired of the nine-to-five grind with no exit in sight?  You are not alone.  There is a growing tribe of people the world over that is getting disillusioned with the traditional job path.  The traditional job itself is disappearing.  We have now entered the gig economy.   In the gig economy, people are constantly looking for their next gig which itself if becoming ever more elusive.  So, armed with your hard-earned college degree (or two) and while drowning in student debt, you spend countless hours hunched in front of your computer job hunting.  Hunting for that gig not even related to your field. We need to open our eyes wide, look around and observe what is happening.  If we continue down this path where are we going to end up?  Are we going to retire young and rich?  Are we going to end up with millions in our bank account?   Most likely we will end up in poverty with nothing to show for all our hard work. Yes, folks, it is time to take action.  I