Very few business owners have the means to operate without borrowing at start up, or later on when it’s time to invest in growth.
Borrowing, however, is only a temporary solution to a lack of funds. Without a repayment plan debt can grow into an unmanageable problem that costs much more than the initial loan.
These strategies will help you re-pay your debt faster, so you can invest the cash you’ve been spending on interest back into your business.
No matter how much money you currently have in the bank, it’s a good idea to consult with a financial planner sooner than later. There’s no better way to start mapping out strategies for investing – and saving – so you can meet your short and long term financial goals.
Financial planners are there to help you save time and money as you prepare to buy a house or commercial property, invest in a business, or plan for retirement. Ultimately, by relying on their expertise you’ll make better financial decisions that will grow your wealth and increase your security.
These tips can help you find the best financial planner to meet your unique needs.
Most small business people would agree that their Profit and Loss account (now more correctly called a Statement of Financial Performance) is among the easier – if not the easiest – financial document to understand. It’s typically presented in two parts.
The top half of the statement reveals the various sources of income the business has received for the period covered, such as a quarter, half-year or full financial year. After subtracting the cost of producing your goods or services, it shows your gross profit figure.
The bottom half of the account lists all the relatively fixed running costs (business overheads) such as rent, power, and communication costs you need to pay each month regardless of sales levels. When these costs are subtracted from the gross profit the result is a net profit figure (before tax).
