Do Business Well

Even if you managed to obtain adequate finances for your business, one of the biggest traps is cash flow. Cash flow basically means the movement of money into your business (from the sale of your goods or services) and the movement of money out of it (to suppliers, the bank, other creditors and employees). The relationship of these two flows is very important. Many businesses go under because although they are owed a lot of money they do not have enough in hand to pay the bank/their own debts. There is nothing more frustrating than knowing you are owed 0,000 but not having enough cash in hand to pay for the weekly shop. Continue Reading »

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After your business has opened, your accountant should:

• Set up a mechanism to record your daily business transactions e.g. sales, cash receipts, purchases and all expenses.
• Open a set of books (now recorded on your computer) e.g. cash book, journals, petty cash etc. This will most likely entail the purchase and installation of a software package suitable for the recording and presenting of your financial results.
• Arrange to present your accounts to you on at least a monthly basis. You should receive a package consisting of an income and expenditure statement, a cash flow statement and a balance sheet not more than 10 days after the end of the month.
• You should insist on receiving the following information on a daily basis

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Now that you’ve determined whom you want to addressyour business plan to, you need to consider what—and howmuch—that audience really wants to hear. Fred Gibbons of Software Publishing Corp. says that he intentionally kept his business plan to a maximum of ten pages because he knew that venture capitalists appreciate conciseness and brevity. And, indeed, he received compliments (not to mention offers of financing) from each of the three venture capital firms he presented the plan to. He was also able to show the same plan to potential suppliers and key employees because, in addition to being easy to read, it emphasized the company’s plans for aggressive sales and marketing that would lead to substantial but controlled growth. Continue Reading »

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