Funding options for SMEs

Research has indicated that half of small business owners have had to raid their savings to fund their businesses. With interest rates as they are, this isn’t a terrible strategy, but it can be limiting and carries risk.

Bootstrapping

Bootstrapping is a term used to describe trying to establish and grow a business using just your own resources, i.e without any investors or financial support such as bank loans.

Turnover is vanity, profit is sanity

The so-called Micawber principle, as stated by Wilkins Micawber in Charles Dickens’ novel David Copperfield, says: “Annual income twenty pounds, annual expenditure nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.”
This widely used quote on personal finance is just as relevant for business finance. For any commercial and business to be successful and sustain itself over the long term, it must make a profit, i.e. revenue must exceed costs.

Elephant Control

In H.M. Williams book about growing a business, entitled Proper Coffee & Other Ways to Grow Your Business, he looks at the parallels between owning a business and owning an elephant. It might sound bizarre, but here’s a summary for you to ponder.

The value of your business matters

In the wake of a more positive economic outlook, businesses are often presented with opportunities for expansion and growth. But also, because there is a more favourable lending environment, or more eager investor interest, then it can be a more favourable time to exit a business.

Speed up customer payments and improve cash flow

Begbies Traynor’s latest Red Flag Alert reveals over 47,000 UK businesses near collapse, a 25.9% increase from the previous quarter. Construction and real estate sectors are particularly at risk, signalling a pressing need for support measures to avert widespread economic fallout.

Cash Flow Forecasting Explained

In the dynamic world of managing a business, one of the most critical elements to success is effective cash flow management. Cash flow forecasting is a fundamental tool for business owners to navigate financial challenges and ensure sustained growth.
In this article, we will delve into the importance of cash flow forecasting and talk about what is needed to master this essential financial practice.