Blog Category: financial planning

Managing Cash Flow for Company Growth

14 June 2010

In any business, cash is the lifeblood that keeps everything afloat. If your money is poorly managed, your company will not only fail to grow, but it might implode and become one of the high percentages of failed businesses. One cash flow problem in business is the time between paying suppliers and employees and the time you're collecting most from your customers.

In four relatively simple steps, you can work to keep better track of your cash flow and streamline the process to aid in company growth.

Step One: Cash Measurement
It might be tedious, but it's important to work on cash flow projections. You should not only project cash for the year, but go further into the process and project earnings by the quarter or even by the week.

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What Items are Zero Rated from VAT in the UK?

09 June 2010

VAT is something many businesses will have to contend with when purchasing items and when attempting to sell them. The UK's VAT isn't quite as high as other European countries, but in 2009, the nation suffered a 3.7% consumer inflation bump, and then Chancellor Alastair Darling (pictured) declared that VAT should be restored to 17.5% on a wide range of goods and services.

Similar to a sales tax, the value added tax is a levy tacked on based on estimated value as a product goes from material stage, manufacturing and finally distribution. This tax is ultimately passed on to the consumer, so finding zero-rated items is the ideal for most small businesses. This creates big savings on expenses and, of course, customers appreciate the lower prices.

It's hard at times to find a proper niche in the market and grab a product that isn't subject to VAT. This becomes especially difficult when dealing online, as most affiliates are working to sell high-end electronics. However, there are a few products for online businesses not subject to the high VAT.

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Will Floating on the Stock Exchange Tie Your Firm Down?

26 May 2010

A lot of businesses decide to venture into other areas of potential earnings once they're established and doing well. Many men and women around the globe specialize in taking things to the next level in terms of stock market options. Many more, however, are run-of-the-mill businesspeople and are not fully aware of the stock exchange's implications.

If you're planning on floating your business on the stock exchange, what exactly are you in store for?

In simple language, floating on the stock market simply means you have sold a percentage of your business as shares. The London Stock Exchange is usually dominated by larger firms choosing to go this route, while AIM (Alternative Investment Market) and PLUS are around for smaller companies wishing to go the same route.

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How do you pitch for finance to get funding for your start-up

05 August 2009

Government officials may be trying to tax small business into extinction, but that doesn’t deter the many thousands of individuals with dreams of becoming small business owners. Unfortunately, not many people planning to go into business have enough money to get started.

Even something like a website business can take thousands of dollars to get going. When you’re dealing with an on-site clothing store, corner grocery, print shop, etc, the funding needed increases exponentially. If most had the money needed to start a business, ironically, they wouldn’t need to start a business.

The truth of the matter about businesses is they need to be funded by outside resources, such as loans from banks that specialize in just that. Knowing where to look, however, is only half the battle.

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How does VAT work within my small business when I first start up?

30 November 2008

VAT is the Value Added Tax which is added to goods and services as a means of a consumption levy on value being added to a chain. This is a tax charged at each stage between the producer and the consumer of a good or service, so in effect, the charge flows downstream.

As of December 1, 2008 the cost of the VAT will go down to 15 per cent and back up again to 17.5 per cent January 1, 2010. There are a few items that carry a lesser charge like some fuels. Other things like food, periodicals, clothes for kids and some medically based items carry no charge at all.

A business making less than £67,000 annually does not have to register for the VAT 9 digit number. This is nice for the new business on the block, making the cost of goods or services provided significantly less than a VAT registered competitor. If you do startup a business and register for your VAT number you first have to evaluate what it is you are selling and see where it falls in the VAT cost breakdown. As we discussed before some items carry a lesser charge, some no charge at all.

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