The goal is for you to achieve financial freedom

  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

  It is important for businesses to maintain a good relationship with their bank in order to safeguard their future access to funds. Prepare a strong business plan This is one of the first steps to ensure that the bank will identify it as a low risk business and therefore someone they are willing to give funds to. A solid business plan highlights the viability of the business, information about the experience and success of the owners and managers, expenses which the loan will cover,as well as detailed sales expectations. Establishing a personal relationship Over time, an owner establishes key contacts within their bank that are familiar with their business and financial needs. Keeping these contacts informed of any changes to the business or cash flow projections before it comes as a surprise will build trust between the bank and the business. Knowing your business inside out By keeping themselves updated of their own financial status, by obtaining credit reports and public records, b

  With the selling season almost here, now is the time for those thinking of selling their property to start turning their plans into actions. But with many other property owners also going to market, it is important for sellers to know what to do to stand out from the crowd and improve their chances of selling. Deciding between selling your property by private treaty or auction depends on the market and buyer behaviour. When market demand is high and property buyers are quite competitive, having an auction is more likely to provide the best possible price for the property. However, if you are selling in a busy market, there is little point in opting for an auction. If you’re able to put your property on the market and be guaranteed to receive an offer within a week, there is no point going through a four-week auction campaign. Working out how much you should do up your property should also be a key consideration for property sellers. If your property doesn't look 100 per cent, you

  Exit interviews can provide valuable insights for employers wishing to establish why someone would leave their business for another. Whatever the reason for the departing customer, conducting an exit interview with them provides owners with valuable information regarding their overall performance, communication practices, and why a customer would leave for another business. Understanding the above can help improve a business and prevent future customers from leaving. Here are five key questions employers should ask in exit interviews to uncover how the customer views their business and the work delivered: What was your experience like doing business with us? This question gives owners the chance to update sales tactics, improve production workflow, and adjust business practices to be in line with client needs. What did you like about our services? This gives owners an idea of what they’re doing right and what they’re doing wrong. Asking this question also opens up the opportunity of

  Taking a well deserved day, week or even month off from work could be the very thing your business needs to thrive. Here are four reasons why taking time off away from the office can have a positive effect on your health and your business. Breaks up the routine While the same old routine can make a difference between floating around the office and actually accomplishing tasks and projects, everyday routines don’t inspire innovation or change. Sticking to the same routine will produce the same results. Taking a break and creating the space to be able to come up with new and inspiring ideas can help fix any issues that hold your business back. Gives your quiet time to think Sometimes your brain needs to take a break in order to think more clearly in the future. Allowing yourself some quiet time to think provides the opportunity to learn, self-critique and identify what your business should and shouldn’t be doing. Opens you to new ideas Taking the time to think and analyse your performa

  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

  Innovation is fundamentally important to long-term business success. While you may be able to take on the main role of envisioning breakthroughs for your business, it never hurts to get input from your employees. In order to ensure that your employees’ contributions towards innovation are as valuable as possible, you need to create a workplace environment in which new ideas are encouraged and celebrated. Here are some tips for creating a culture of innovation within your workplace: Keep open lines of communication with your employees. This does not need be limited to your direct reports. If you believe that your staff may have some valuable ideas, extend an open invitation for them to approach you. Ensure that you have adequately considered innovation in your budget. The level of resources that should be directed towards innovation will vary greatly depending on the size of your business and the industry in which you operate. Celebrate creative ideas, even if they prove to be unfeasi

  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

  Leasing out your holiday house to others can make owning that property more affordable. The principles that apply to an investment rental property also apply to leased or rented holiday houses. This means owners are entitled to claim expenses for the property based on the proportion of the income year when it was rented or available for rent. Some deductible expenses include: Property insurance Interest on any funds borrowed to purchase the house Repairs and maintenance costs (such as materials, council tip fees, trailer hire) An agent's commission The decline in value of depreciating assets Capital works However, if owners use the holiday house during the year, they cannot claim any deductions for the expenses that relate to that private use. This includes use by other family members, relatives or friends. For example, if the house is available to rent for most of the year, but two weeks are unavailable for personal use, then that two weeks must be ignored when calculating deduc

  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

  Interest rates are at an all time low, but how long will it last? Here and in many other economies, the steady decline in interest rates means investors and SME owners can borrow larger sums of money for business interests and mortgages. Banks are more than willing to provide these funds, even relaxing the tougher borrowing conditions of the past few years. However, these rates may not last, with many experts believing that the downward trend in interest rates is coming to an end. Before rates begin to rise again, SMEs may want to consider capitalising on the low rates. Putting as much money into your existing large loans can potentially save thousands. If a business’s loans come from various sources, an SME could look into consolidating them into one low rate account. This will help organise debt as well as keep track of it. Next look at the business credit cards. If the current supplier is not dropping their rates; shop around for a more flexible competitor. And although property i

  A contributing factor to a business's success is the owner's personal financial stability. Business owners who carry personal financial troubles into their business risk being distracted by their personal situation, which can affect concentration levels and decision-making processes. Rather than thinking of how to keep improving a business, time may be spent instead thinking about how to earn any much-needed money. Owners should also keep their personal financial situation completely separate from their business in terms of money. Borrowing any money from the business to pay personal bills can very quickly lead to a disaster. One way business owners can avoid this kind of predicament is to clarify and track their business goals, as well as face up to dealing with the obstacles that will come with running a business. There will always be rough patches that can set a business back a few steps, but that doesn’t mean that the business is a failure. Setting a series of small goals

  Make sure any new financial year resolutions made to keep your business financially healthy don’t fall off the bandwagon now.  Here are four tips to keeping it in tip-top financial shape. 1. Know your tax deductions Keep an eye out when lodging tax returns, so you don’t pay too much. If you work from home, you may be able to claim home office costs such as repairs or cleaning expenses. If you use your personal mobile phone to contact customers or your staff, you could also claim for those calls. 2. Stay cash-focused It is important for a business to stay focused on keeping the cash generation rate above the cash burn rate. Try implementing business models that enable you to collect most of your payments upfront. Invoicing your customers on time, or sending timely reminders a couple days ahead of time can also help ensure a business can generate cash flow every month. 3. Hire the right people Time is money, and hiring the wrong people can set you back quite a while after taking into a