Business Money Management

Business Money Management

As long as you are looking after the money in business, it can be said that you are looking after the business itself. Actually, it is not too hard to manage the money in your business as long as you make sure that you do it in the right way. In this blog post, I will touch on some of the best ways in which you can hope to master your business money management so that you can enjoy all of the benefits that will come along with that in due course.

Use Better Business Money Management Software

If you are not already using software to keep track of your money, this is the first step you will want to take.  Make Tax Digital is well on its way for small businesses so if you are not set up yet you will need to be before too long. Using effective business money management software is going to mean that you can expect to keep a much closer and more secure eye on your finances at all times.  Take a look at https://www.mneaccounting.co.uk/sage-accountant/ if you want to get a better sense of what kind of software you should be looking for at a business money management level. This type of software makes liaising with your accountant or doing your self-assessment yourself much easier.

Take a Step Back and Assess

Taking a step back to look at your finances from time to time, instead of just existing day to day, month to month is an essential part of managing your business finances. You will see more on this essential stance at https://www.managementstudyguide.com/financial-management.htm. If you do this regularly, you should find that you are going to be able to master your business’ money much more effectively. Take the time to spot high-income months and slower times. Find ways to improve your cash flow and have a better overall understanding which will support you when it comes to making the best business financial decisions.

Business Money Management: Use Credit Wisely

Cashflow and credit is a part of any business. It is important that if you want to use credit for any reason that you get proper advice about the best kind and terms before going down this road. You could save yourself a lot of money this way and avoid many of the pitfalls that come with using credit.

What are your top tips for effective business money management?

 

Minimising Risk When Growing Your Business

Minimising Risk When Growing Your Business

If you have built up your business to a level of success you are happy with, you should be very proud of yourself. It takes a great deal of hard work and perseverance. If the business model that you have developed is working, that’s great. You might, however, want to grow your business. I am constantly growing, evolving and expanding mine. The key is to be skilled at minimising risk when you do expand.

You may have decided that you would like to take your business to the next level. Any expansion offers risk and uncertainty, though. Economic uncertainty may be the major cause for concern (Brexit anyone?). Instability in the countries finances can bring about doubt for consumers and businesses alike. And, as everyone tightens their purse strings, companies need to hold back on spending. Expanding in a volatile climate could be problematic.  These are all valid point but expansion and growth can’t just stop because of uncertainty. You have to make sure that you take these points into account when planning.

Examples of Successful Routes To Expansion

There are other ways that you can go about building up your business. A good option would be to create a franchise model around your current business. With the help of a consultancy such as Lime Licensing, you could create a scalable version of your business that can be sold to outside investors looking at business opportunities. 

Low Risks All Round

The franchise model offers you less risk when it comes to expanding. You have grown your brand name and developed a working model for doing business. Your customers know and trust you. However, expansion into new towns and cities means enormous set-up costs. And therein lies your risk. 

By franchising out, the investor puts up the business set-up costs. They will pay a fee to you, and a cut of the profits. In return, they will get to trade using a known brand and using a tried and tested method of doing business. 

Minimising Risk When Building A Franchise

You will need to develop a complete package for potential investors. This means that you will need to determine every aspect of how their business is run. From products to sales techniques, paperwork, and procedures. If they are opening as a store, there needs to be a full set of instructions on how this should be set out. If the team is delivering customer service, this will need to be consistent and on-brand. 

Minimising Risk: Accountability 

You will need to ensure that all franchisees are accountable to you. You may choose to implement a way of auditing their standards to ensure that there is no deviation from the model that has been set up by your company. 

Through minimal input, you will have a business that has expanded without putting the work that you have already done at risk. You can keep expanding in this way, taking on new franchisees in different locations and continually grow. Is building a franchise the ideal way for you to expand your business while minimising risk? That all depends on you.

 

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