Revenue streams. If you’re lucky enough to have multiple, you’ll already be familiar with the term. For those who are aren’t, adding an extra revenue stream to your business means adding another way you create profit.
Sounds simple right? Well, not normally. The costs of adding revenue streams are often a huge barrier for businesses. The need for capital to create new product, hire more staff and the time it takes to research and establish new market positions is often not worth the effort.
But there’s a new revenue model taking small to medium businesses by storm. Business 2 Business loan brokering has cropped up across the globe, with some of the major players killing it on the stock exchange.
How does it work?
If you operate in a B2B market you can partner up with a reputable company like smartbizloans.com.au. With access to their systems you connect your business with small, unsecured loans from $10,000 - $250,000.
As a broker what do you offer?
The beauty of b...
The countdown is on. When the 2018 Budget was announced and the ATO extended it’s $20,000 instant asset write off to 30 June 2019, small business owners around the country rejoiced.
Because the simplified depreciation method has made it easier than ever to reduce your taxable income and get money back on assets.
First introduced in 2015-16 the ATO initiative provides an instant asset write-off opportunity for small business. Businesses can immediately claim back each asset that costs under $20,000 for the tax year the item was purchased. Sound good? It is.
The initiative has been a god send to many small businesses who have made the most of the generous scheme. Each item whether new or used under $20,000 can be claimed - making it ideal for start-ups, expansions and...well basically any business needing to add machinery, software, technology, tools or anything else that aids in creating profit to the business.
The scheme is particularly great for helping businesses get out of the vicious cycle of having ...
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 ...
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. ...