When starting a business, the main measure of success is often “how much profit is the company making?”. However, should a business owner also be looking at other financial aspects of their business to help them create and sustain a business with longevity?
“Cash is King” and it is vital to keep a steady flow of cash into your business. Without income you can’t cover your expenses, pay employees or run your day-to-day operations. If cash isn’t coming into your business, you won’t think about growing your business and every business owner should be focusing on growth.
Understanding the finances of your business is hard. Especially if you are not familiar with accounting jargon or technical terms. We help and support business owners who are great at what they do but struggle to understand the complexity of business. Knowing where your business stands in terms of “cash in” and “cash out” is vitally important, especially in the current economic landscape.
Of course, every business wants to make a profit, but profit doesn’t automatically make a stable business. All business owners need to know their numbers. You need to know how much is coming in and going out of your business and where it is coming from and going to. You need to know what your income streams are and the company’s expenditure. It’s always good to be thinking about and implementing sales and marketing campaigns to increase revenue. At the same time, you need to review your company’s expenditure and look for ways to reduce expenses regularly. If necessary, renegotiate with current suppliers or look for alternatives. Ask yourself if a particular product or service is working for your business.
We have products which can help with cashflow;
Do you need to purchase additional stock for an event or busy time of year? A Working Capital Advance or Overdraft Facility (without the bank) could help.
Do you have a VAT bill which is larger than you expected? Ask us about a VAT Loan. It may be better to retain the capital in your bank.
Are you waiting for customers to settle their invoices but need to pay your suppliers? Invoice Finance could be the solution, receive up to 90% of invoice value in 24 hours, not 30 days or more.
Visit www.businessloansltd.co.uk for further details.