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Essential Business Advice Tips: Finance. Excerpt from "50 Essential Business Advice Tips To Prevent Your Business From Failing".
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@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
50 Essential Business Advice Tips
The following tips are excerpts from:
“50 Essential Business Advice Tips To Prevent Your Business From Failing”
A paperback copy is available from: tinyurl.com/50SuccessTips
Alternatively if you prefer the audio version: tinyurl.com/50SuccessTipsAudio
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Introduction
UK - 4.8 Million Small Medium Enterprises (SMEs)
US - 6 Million Companies with employees
1 in 3 SMEs fail in the first year
A further 50% do not progress after their 3rd year
What are you doing to prevent your
business from failing?Feedback: [email protected]
List of links: www.paulgreen.biz/tips
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Finance
In this section, we cover the finance matters that impact a business and provide you with key
areas that you should be looking at to sustain you in business and your profitability.
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Finance: Tip #4Cashflow
Cash is king
Know what is coming in and when
Know what is going out and when
Prepare a cashflow statementFree cashflow template download: www.paulgreen.biz/downloads
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t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Finance: Tip #5Credit Control
Chase invoices before they are due
Resolve problems in advance
Don't pay too early
Negotiate terms
Communicate problems
Review your debtors
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t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Finance: Tip #6Management Accounts
Be up to date
Look forwards not just backwards
Prepare a regular cashflow statement
Know your numbers
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Sources of funding:
Finance: Tip #7Funding
Trade Finance
Payroll Funding
Pension Funds
Business Angels
Venture Capitalists
Overdrafts
Loans
Factoring
Leasing
Asset Finance
Invest wisely
Useful article: tinyurl.com/types-funding
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Finance: Tip #8Break Even Point
Break Even Point is the minimum level of sales required to start to generate a profit
It can be calculated as follows:Gross Profit (GP) = Total Sales – Variable Costs
Calculate GP percentage = GP ÷ Total Sales
Break Even Point = Fixed Costs ÷ GP Percentage
e.g. Total Sales Turnover = £500k; Variable Costs = £200k; Fixed Costs = £100k
GP = £500k - £200k = £300k
GP percentage = £300k ÷ £500k = 60%
Break Even Point = £100k ÷ 60% = £333k
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Online Break Even Calculator
Free Online Break Even Point Calculator
www.paulgreen.biz/breakeven
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t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Finance: Tip #9Cost Reduction
Do you have a handle on your costs?
Particularly supply of goods and services
Review annually
Test for competitive prices
Review your costs
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Finance: Tip #10Grants
Be aware of availability:GeographyIndustry sectorSpecialistR & DEU
Search www.grantfinder.co.uk
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Finance: Tip #11Banks
Choose the right bank
One who understands your business
Communicate with your bank manager
Keep them 'on side'
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
ʽʽTurnover is vanity, profit is sanityʼʼ Bottom line profit is key Don't wait for annual accounts
Use monthly reports to manage your accounts
Finance: Tip #12Profit versus Turnover
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Send out invoices more frequently Chase invoices earlier Get the right terms and conditions for your
business
Chase the money into your business
Finance: Tip #13Invoicing
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t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Have enough funds available to properly manage your business
Finance: Tip #14Capitalization
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Summary
Take action Do nothing? Do something? Do it by yourself or get
someone to help Bite size chunks Delegate Prioritise Now & Next actions
Who? By when? Measure Document Review & Update Share
Good luck!
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
About The Author
Founder: UK Business Advisors
FInstIB
PBA: Effective Business Group
Columnist: Effective Business Today Magazine
Worked with over 40 business owners
Profitability in 60 days or your money back
20+ years
Specialist: Strategy ~ Business Planning ~ Sales Mentoring/Coaching ~ Leadership Development
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Useful Resources
Boost Your Business Blog: www.paulgreen.biz/blog Articles Directory: www.paulgreen.biz/articles Free Downloads: www.paulgreen.biz/downloads
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t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
Free Business Review
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Disclaimer
No responsibility can be accepted for any actions that you take as a result of the contents provided in this guide.
There is no guarantee that implementing any of these tips will definitely prevent your business from failing.
They are presented as a guide based on the experience of the author working with many different types of business and are provided as a
choice for you to consider if they will make an impact on your business.
@paulgreen paulgreen.biz pgreen1964 gplus.to/paulgreen
t: +44 333 444 8522 e: [email protected] w: www.paulgreen.biz © Paul Green 2011
50 Essential Business Advice Tips
The advice you have just listened to comes from a collection entitled:
“50 Essential Business Advice Tips To Prevent Your Business From Failing”
A paperback copy is available from: tinyurl.com/50SuccessTips
Alternatively if you prefer the audio version: tinyurl.com/50SuccessTipsAudio
