Finding Money to Expand and Grow Your Business
Growth is the key to building a healthy, sustainable business and usually that involves finding money, and sometimes, quite a lot of it. But to grow, organisations need to locate ways to expand their business operations. Improving an existing product, adding to the size of your staff, and launching a new product line are popular choices. Another option that can help you grow your business is to increase your number of business locations. Each of these ideas for expansion all require significant funds. Coming up with the money to expand is a challenge for any business, especially a small to mid-sized one. The following are a few strategies to help you find the money to develop and grow your business. Cashing in Savings and Applying for Loans One way that business owners can locate the money they need is to cash in their savings. They might also sell a personal or business asset, or apply for a loan. While these are popular choices, each features a number of drawbacks. One significant drawback is the fact that loans must be repaid over time. Also, you need to take into account the crippling rates of interest charges which can seriously impair...
Read MoreYour Cash Could Be Hiding In Plain Sight
Many small businesses focus on ways to increase their income or reduce their expenses to maximise the amount of cash that flows in. While these two steps are crucial for accumulating profits, managing your cash flow is more about the actual timing of the monies that flow in and out of your business. One of your principal goals should be to manage your cash flow in such a way that you always have more money coming in, and retain more money on hand, than the monies that are going out of your business. But, what do you do, if no matter how hard you try, the money just isn’t there when you need it? If you have adequate cash coming into your business, but, it doesn’t seem to be flowing in at the right time, then your money has probably fallen into one of those unseen cracks, or “money pits” that exist in every business. Take some time to investigate the following areas of your business very carefully. Don’t be surprised when you find that your money is there, hiding in plain sight and tied up in your business! Do you know the average age of your accounts payable? On average,...
Read More5 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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"Sophie is so professional – careful, attentive and punctual – she has made managing my accounts not just easier, but a whole lot less stressful" Fast Ed, TV Chef from Better Homes & Gardens.
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