Posts Tagged "money management"

Should You Put More Money Into Your Business?

Posted by on Nov 4, 2015 in Blog

Should You Put More Money Into Your Business?

Regardless of how well your business may be performing at the moment, one of the most difficult decisions you will ever face as a business owner is choosing whether or not to invest more of your money into your business. Sometimes, an injection of cash is just what is needed to help you weather a temporary downturn in your business or to help you grow your business by making it possible to expand. Other times, there may be fundamental issues with your business strategy and prospects that turn your once popular, growing business into a literal money pit that will never break even. In these situations, it can be for the best to cut your losses and start a new venture where you can try a different idea or business model rather than investing any more of your money. The real challenge is learning how to be unbiased as you examine the performance and structure of your existing business so that you can make an informed, sound decision. Use the following tips to help you figure out whether or not an infusion of cash or other resources will give you the best return on your investment. Can You Improve...

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3 Tips To Manage Your Money During The Tight Months

Posted by on May 13, 2015 in Blog

3 Tips To Manage Your Money During The Tight Months

Whether you’re starting out, or have suddenly hit a rough patch after years of being open for business, learning how to manage your money is a difficult and often frustrating task. Unfortunately, some of us never truly master this skill, but if you wish to keep the doors of your business open, it’s important to develop your money management skills. Getting to the Heart of Money Management Two important factors that influence your ability to get a handle on your money are profit and cash flow. Controlling your direct and indirect costs can maximise your overall profit. Creating positive cash flows by timing your payments to occur when they are the most advantageous to you is also important. Doing so makes it easier to build cash reserve so that you can protect yourself against the very real possibility that you will run out of money at some point in the future. It will also ensure that you have adequate working capital to open and run your business. What is a Cash Reserve and Why Do You Need One A cash reserve is simply a portion of your earnings that you save rather than spend. Having a cash reserve, or...

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5 Tips For Managing Your Cash Flow

Posted by on Mar 18, 2015 in Blog

5 Tips For Managing Your Cash Flow

Businesses boom or go bust depending on financial management, and one important aspect you need to keep in check is your business cash flow. You always need to know what is being spent and earned where, and when, in order to properly manage, run and build your business. Often a business fails not because the product or service is poor, but because there is not enough money ready to boost its growth when necessary. Don’t let it happen to you! These simple tips will keep you on top of the very serious game. Know where you stand. If it is not possible to do daily, check your balances at least once a week to avoid surprises. Insist on positive cash flow. Watch your budget and do not overspend. If your business is operating over budget, look for ways to tighten expenses or increase income. Over time marginal improvements add up. Save for rainy days. In most industries there are peaks and valleys throughout the year. Know when yours are, and avoid overspending when times are good so you are able to tide yourself over when things slow down. Be easy to pay. Encourage direct deposits and provide account numbers...

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Cash Or Crash – The Importance Of Managing Cash Flow

Posted by on Aug 14, 2013 in Blog

Cash Or Crash – The Importance Of Managing Cash Flow

One of the keys to being successful in any business is the ability to properly manage the cash flow.  Every business ultimately relies on cash to pay employees and suppliers in order to provide the goods and services to customers so that it can remain in business. While it’s certainly possible for many businesses to access a line of credit to smooth out any fluctuations in cash flow so they can still acquire goods and services to provide their customers, this will only work to help a business to stay afloat in the short term. Without a long term plan to properly manage cash flow so that employees, suppliers and even taxes and other fees are paid on time, a business will ultimately fail. If you find that you are often robbing Peter to pay Paul in your business just to stay afloat, you might want to consider using the following strategies to better manage your cash flow. Have a Plan Make a realistic plan for your cash flow that is at least 12 to 16 weeks in advance. You may find that having a calendar with a forecast of all of your expected cash outflow and intake for...

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