There is nothing like a little reflection to breathe life back into your business, and the start of a new year is the best time to do it. If your business is fresh it’s a great time to get in the habit of checking in, and if you’re a small business veteran it’s even more important to get a fresh perspective. Here are 5 simple steps to guide you in your new year resolutions and set yourself up for success in 2018:
1. Plan your holiday cash flow
The best way to start strong, is to finish strong, and this means planning. Sure, the end of the calendar year is a headache for all of us, but taking the time to plan your holiday cash flow is essential in making sure you start 2018 on the right foot, and get your ducks in a row for the second half of the financial year. Read our blog ‘How to full proof your Christmas cash-flow’ to get you started.
2. Re-forecast your revenue projections
Talk to any busin...
It’s that time of year again, where festivities ramp up, routine winds down, and cash flow goes out the window. If you’ve ever experienced a Christmas cash nightmare, you’re not alone. The rate of business insolvencies in Australia peak in February as a result of many businesses failing to prepare for the blow to cash flow the holiday period typically brings.
But the good news is with some solid planning and close monitoring, you and your business can cruise through Christmas. Here are some top tips to get you started:
1. Monitor your cash flow
In a perfect world, this would be a redundant statement, however far too often small businesses don’t have a proper picture of their regular cash flow. In the lead up to Christmas track and plan your cash flow – then keep a close eye on it. There are some great online tools and cloud based software options that offer easy to use cash flow monitoring. Make sure you know exactly when any big expenses can be expected, then plan for more.
Starting a business is a daunting process, and often it’s finding funding that can be the most unexpected challenge. For a small or new business getting off the ground, finding the backing of a big bank can be like pulling teeth. Regardless of how promising your business plan looks, or how revolutionary your product, being granted a loan without security can be near impossible.
1. You don’t need to use property as security
Most, if not all banks will require you to offer up property or other valuable assets to use as security against your loan. This means if you default on loan repayments, the bank can claim these assets in place of financial payments.
Unsecured loans mean exactly that, you don’t need to offer up security to be able to access funding. Instead, your loan is given to you on the merits of your recent cash flow and current financial standing.
What does this mean for you?
It means if you’re a new business, or a business without property, you can still get a loan ...
Have you ever felt under pressure and out of control with your business finances? Far too often small and medium business owners get wrapped up in the never ending cycle of bills and repayments, only to lose focus on the things that matter most.
If you’re struggling to cope with the day to day cash flow of your new business, you’re not alone. A staggering 80% of new businesses fail within the first 18 months of operation, with the vast majority of these businesses simply running out of cash.
While there is undoubtedly a myriad of factors that contribute to a cash shortfall, many entrepreneurs make the mistake of either launching a new business without enough capital, or underestimated the initial income their new endeavour would generate.
Naturally, once you start trying to back pay after an initial hiccup in your financing, it doesn’t take long for things to snowball. And it’s not just start up’s that suffer the cash flow trap.
Whether it’s disruptions to the supply train, interest hikes, rental increases...
Few things are as daunting as dealing with low cash flow in the first quarter of the new year. Use the following tips to help you handle the February cash flow crunch.
Get your invoices out before the holidays
Do what you can to keep your cashflow in check before the holidays by sending out any leftover invoices before the holidays and stick to your payment terms.Speed up your debt collection process
Chase up outstanding debt right away to stimulate your cash flow in the short term. In the long term, it can positively impact on your future cash flow.
Reduce your capital requirements
Keep your inventory small by ordering less stock more frequently. Invest in the stock that sells best at this time of the year and focus on those with a higher turnover and margin.
Speak to the tax man
If you're experiencing low cash flow and are faced with a huge BAS payment, speak to the Tax Office. They will happily work with you to secure an extension. ...
It's that time of the year again - time to reflect on your victories and challenges of the year that's ending, and to consider how you want to do things differently in the new year to take your business to the next level. Here are some of our tried and true tips to help you succeed in 2017.
Setting Your Goal
Many Smartbiz owners have a financial goal for their companies, however, $10 million in turnover is not the true goal. True goals are fuelled by emotion. Your company, and the money you make from it merely provides a vehicle to achieve a certain outcome, which is usually very personal.
We are driven by pain and pleasure, and those are the two emotions that drive success. You either want to achieve a goal that will allow you to move towards or away from something.
What drives you? What drives your family? Sit down with your loved ones and discuss what is important to all of you. Put a dollar amount to that private goal, and you will have a starting point to work towards.