Growing your small business is usually a great thing, and in fact it’s what virtually all small businesses are aiming for. However, unless that growth is accompanied by sound financial planning, it can actually cause more harm than good. The truth is that growth often puts a pretty severe strain on any small business’s cash flow, especially when that growth is being fueled by cash flow money which is normally earmarked for expenses. It can be just as bad if…
Innovation in the workplace is something that every business and every leader should encourage in order to stay competitive in its market. Any business which is not continually improving on its product lines, and how it produces those products, is in serious danger of being left behind by competitors. All the most successful business leaders understand that they need to be constantly searching for ways to improve product benefits to customers, while streamlining the operations necessary to create them. The…
Without funding from someone else, it’s impossible for many new businesses to expand. This means reaching out to potential investors as a possible source of revenue. If you find yourself in that position, know that you need to come extremely prepared to each meeting with a potential investor. One of the most important things you can do is take the time to prepare a highly professional business plan. For Some Investors, the Executive Summary is the Only Thing That…
Starting a new business with a partner is much less overwhelming than trying to do everything on your own. You each bring a certain level of expertise in different areas that make you stronger together. As a business entity, a partnership is a step up from a sole proprietorship. The difference is that each of you owns half the business. This also means that you divide its assets and liabilities. While a business partnership has many advantages, both people should…
Whether you’re planning to retire or move into another line of work, the time may come when you choose to sell your business. Taking the time to plan your strategy now is essential to ensure that everything goes smoothly when it’s time to transfer ownership to the buyer. Does Your Estate Plan Include the Use of Trusts? Assuming you have already established an estate plan, it’s a good idea to incorporate one or more trusts into it. Trusts offer…
Many business owners would rather do just about anything else instead of creating a budget. At the same time, they know how essential it is to reign in expenses and ensure that the company remains profitable. Setting priorities for the business is another important aspect of creating a budget. It lets all employees know with one glance which things are the most important things to spend money on as well as the things that can wait until cash flow improves….
When you decided to start a business, you did so because you felt passionate about offering a unique product or service. It might have never occurred to you how much accounting and bookkeeping work you would need to do as well. Unfortunately, some new business owners become so overwhelmed by financial tasks that they ignore them or do them incorrectly. Not only can this lead to prompt business failure, it can cause tax problems with long-term implications. Separate Your…
It’s very important that you choose the right company structure when starting out in the business world. There can be a great many impacts on your company which are all devoutly derived from the structure that you choose to do business under. For instance, your taxes will be strongly affected, your ability to raise money for the company will be affected, and if you happen to be sued, company structure will have strong implications there also. In order to make…
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