One of the biggest concerns for small and medium size businesses (SMEs) is juggling time and company finances, particularly as the economy slips further into a financial downturn and priorities shift. Business owners are always looking for new ways to give themselves a little bit of financial breathing space that won’t unbalance either their business or their books. Using a business credit card could be one weapon that could help to minimise the day to day problems that many businesses encounter, giving them the chance to reappraise their cash flow and give them more control over their daily finances.
A business credit card (unlike a personal credit card) can offer SMEs greater financial flexibility and provide an alternative to expensive loans or debilitating overdrafts. If your company only needs a relatively small ‘fighting fund’ to cover daily expenses or the occasional payment to suppliers, a business credit card could be the answer. By choosing a card that best suits your company’s needs, you can reduce the amount of ’empty money’ you pay on overdraft interest payments or loan interest charges. Business credit cards are easily managed and can certainly help a business to survive a lean month by ensuring suppliers are paid on time, thus keeping open other lines of credit essential to the operation of the business. If managed carefully it can also improve the credit rating of a business – something that, in the current climate, where banks are reigning in on business loans to minimise their exposure to ‘bad debt’, puts a business on much firmer ground.
In 2004, the Warwick Business School carried out a study of 2,500 businesses that looked into financial options for SMEs. The study found that business credit cards were the financial option of choice for 55% of small and medium sized businesses. 53% of SMEs had overdrafts, 27% used hire purchase agreements or leasing contracts and only 3% cited equity finance as their primary financial source. This study, although carried out before the current recession kicked in, is still applicable today and business credit cards are still an integral part of business life. The major benefit of a business credit card is that it gives a company a separate source of income from their main cash flow. It can also provide them with an extended, interest-free credit period when dealing with suppliers. This ‘grace’ period between payment to a supplier and the money being removed from the company’s assets via credit card payment can sometimes mean the difference between survival and closure for many small businesses.
Developing of any business completely depends on several different factors and are to be handled in a professional manner. A skillful and a trained person can do the job perfectly in handling all the issues especially in investing the capital and other financial issues.
A certification course
Certified financial planner certification also known to be a CFP course is one such certification course that can be done by the person who likes to see their future in the financial sector. Any person after completing the particular certification course can start their career in the banks, mutual fund sectors, managing the wealth or financial planning.
Every individual interested to complete the course should get through an exam and after getting the certificate you can be a financial planner.
Joining the course requires few terms of eligibility and once done with admission then you and to give few tests one should pass the last test to acquire the certificate.
Completing this financial course or getting the certificate gives you a global recognition with which you can work at any corner of the world.
Also this allows a person to gain more professional bearing regarding the financial planning which will offer a number of personal and professional opportunities.
This Certified Financial Planner course allows you to understand all the strategies of the financial market very clearly so that you can plan regarding it for the development of the business.
Along with experience and talent one should be professional maintaining all the ethics to last long in the profession. As in this field you need to deal with a number of people and their financial issues be strong regarding your basic ethics. Tackling with the financial matters of the business people will let you know a number of business secrets of the particular company so to maintain good relationships with all your clients you should be more dedicated and reliable.
Beginning your home-based business is the uncomplicated part, although realizing your lasting objective of financial freedom needs much energy and commitment. There are numerous approaches to organize a home-made enterprise, but the plan below sketch out some substantial principles you must adhere to to receive a stable earnings from home regardless your home-made trade.
1. Decide Aims for Success
To stay all ears on what you want to accomplish inside your home-grown trade ensure to establish targets. Begin with enduring hopes for where you would imagine to be economically five, ten, even fifteen years from now. After that you should start interim desires for every of your daily, weekly, and monthly feats. A home-based business venture will not take off without desires, therefore do this step before establishing any other tasks.
2. Build a Pleasing, Professional Home Headquarters
Make an evaluation of your home-grown business workstation. Do you work in a small place in your bedroom with a desk and computer? Are you generally on the kitchen table working between lunch and dinner? Are you working in the living area though the rest of your family enjoy conversation? If you have lived through one of the above circumstances, then you’ll possibly call for alteration.
Build a space designated just for work. Put up sectional walls or some kind of barrier if it’s in another room, to produce a feeling of space to yourself.
3. Get Systematic
Stuff your new work area with supplies and gear to make working more uncomplicated and well-organized. In a restricted office space, use cabinets and desks with shelves to straightforwardly organize your gear. Also, retain a calendar, schedule book and daily to-do list to prioritize tasks.
4. Keep to a Timetable
It’s simple to get sidetracked while you’re working at home owing to distrurbance or appeal to get time off for leisure activities. Keep in mind that every time misused today is as a rule equivalent to just how much additional work you’ll be doing the next day. Abide by a fixed work standard daily and program to make certain a thriving home-based business venture. Additional money obtainable and a step closer to financial freedom for each hour you use working.
Having extraordinary skills and talent in a business area, being hardworking and determined, persistent, having great ideas and full of energy is a fantastic mix for a successful business career. But all those exquisite qualities mean nothing if the end result is not represented in the bottom line.
The financial section of the business plan is where all the operational items included in the rest of the business plan come together. There are three essential elements to a properly thought through and well constructed business plan. Those elements are a forecast profit and loss account stating the income and expenditure, a cash flow statement that determines the liquidity and a sensitivity analysis that indicates the risks and opportunities within the business plan.
The forecast profit and loss account should be prepared on a monthly basis for the first year with an annual projection for the second year. The first year of every new start up business can be difficult due to financing and funding growth from a standing start which is why the first financial year should be detailed.
The forecast profit and loss account is the financial calculation of all the sales, purchases, expenditure and prices contained within the other areas of the business plan. In addition full account should also be taken of the business administration costs. All the figures in the business plan income and expenditure account should be fully supported from the physical projections contained in the other sections and derived from those sections.
From the sales section multiply the sales volume of each product by the considered selling prices. Keep to a minimum sundry additional income that might be expected. The resultant financial calculation produces the expected monthly sales turnover.