Accurate Inventory Forecasting, No Crystal Ball Needed
Anticipating future demand is a tough job, wrought with ways you might go wrong. Proper demand forecasting and inventory control can save a company from buying too much or too little of something, which of course avoids expensive overstock scenarios or stockouts.
Aussie businesses get over $3.5m to launch their innovative idea into global markets
Offers for grants worth over $3.5 million will support 7 businesses to help launch their innovative products, processes and services into domestic and international markets.
The funding has been provided from the Accelerating Commercialisation element of the Entrepreneurs’ Programme.
Creating a business without debtors
There’s literally hundreds of blog posts giving you the 7-10 steps to reduce debtors and improve cashflow. Yet the debtors problem still exists to some extent in the majority of small and medium size enterprises (SMEs) globally.
Debt Collection: The Whys & When
Too often businesses leave collecting debts at the bottom of the pile. Why? Often there is anxiety and worry around the process, or lack of trust in collection agencies. Sometimes lack of time and understanding of the process.
If You Don’t Got the Time, You Don’t Got the Money
Clichés. Can’t live with them, can’t live without them. (See what just happened there—it’s that bad).
The most widespread, just-waiting-to-pop-out-at-you, cliché is a very short one, measuring just three words—time is money.
Tax deductions for small business owners
Tax time is fast approaching—it’s important to do your homework and know exactly what tax deductions you can claim.
How to Refinance Your Business Debt
Many firms will decide to take on debt at some point, at different stages of growth and for several reasons.
Tricks used in Scams
Scammers use clever tricks to reel you in and get you to reply to their email or not hang up the phone. Most scams seem like genuine offers but they are carefully designed to trick you into giving away your money or your personal details.
How to Avoid Cash Flow Problems
Cash flow can be hard to get to grips with for any business; whether you’re growing, just starting out, or established. In fact, 82% of businesses become insolvent because of bad cash flow.
Best and Worst Businesses for Cash Flow
No matter how inventive or simple your business model is, you can still have problems with cash flow. Here is a rundown of the best and worst businesses for cash flow.
5 Essential Business Costs Not to Skimp On
If you are a startup owner or entrepreneur, it is no secret that you may be working within a tight budget. The ability to make pennies stretch is an important survival skill.
5 Ways to Reduce Debtor Days
Debtor days measures how quickly cash is being collected from debtors. The longer it takes for a business to collect, the greater the number of debtor days.
Financial Mistakes To Avoid In Your First Business
After spending months thinking about it, you finally decided to quit your 9-5 job and start your very first business. You think that this will be a win-win situation for you because you get to do what you love and be your own boss.
How To Prepare Your Business For The Next Recession
There has been a lot of chatter in the media recently that another economic downturn might be around the corner. As The Wow Company found in their recent “How recession-proof is your business” survey, a surprisingly high number of UK-based businesses are not prepared for the next recession.
Is Peer to Peer Lending the Best Funding Option for Your Business?
Over the last five years, peer to peer lending has become a popular alternative to traditional bank lending for individuals.
5 Retail Store Design Upgrades That Won’t Break the Bank
Take a moment to put yourself in your target customer’s shoes. Now, pretend you’re someone who’s walking into your store for the first time.
Virtual Currencies: Bitcoin and other Virtual Currencies
Many virtual currencies, such as Bitcoin have emerged over the last 10 years but just how safe are they? We explain how virtual currencies work and the risks you take buying, trading or investing in them.
6 Factors You Need to Know When Considering a New Supplier
The best suppliers will provide the most suitable goods or services at the right prices and within the right time frames for your business needs. Below we give you six factors you need to know when considering a new supplier.
Happy Customers, Thriving Company: The Role of Inventory Management
If there were no customers, there would be no business. And with no business, there is no income. So, it would be safe to summarise that customers should be the point of business, would it not?
Late payment reduces small business confidence to grow
Three quarters of small and medium sized UK builders say that late payment has directly hampered their business growth according to a recent Federation of Master Builders survey.
5 Types of Sales Promotions in Retail (and How to Implement Them)
Promotions are almost always part of a retailer’s sales and marketing mix, and for good reason — they can drive sales and help you move inventory.
Lean manufacturing and the coffee roast
The coffee category of the hot beverage industry is thriving, with the number of coffee drinkers growing each year. Cafes and coffee vans are everywhere, meeting our seemingly unstoppable need for a regular caffeine fix.
Tackling your cashflow challenges this Christmas
Most of us look forward to Christmas as a time for fun, festivities and spending time with the family. If you’re a small business owner though, it’s not always the carefree holiday you might hope for.
How Small Businesses Can Use Peer-to-Peer Lending
A new trend is rising, changing the way people can are securing financial needs. This new trend gives both individuals and businesses an alternative source of financing.
5 Subtle Signs That Your Retail Store Is in Trouble (and What to Do About Them)
Have you ever heard about the parable of the boiling frog?
Should Your Business Give Trade Discounts?
Many businesses use trade discounts to simplify variable pricing, protect a market recognised price point, stimulate sales or reward customer loyalty.
Why profit isn’t the problem and cashflow is king
What is cashflow management? In its simplest form, cashflow management is doing everything possible to ensure that money flows into your business as quickly as possible, and leaves the business as slowly as possible.
3 Forecasts Your Business Needs To Succeed
Forecasting is the process of estimating the effects trends, costs and external factors will have on your business in order to give yourself time to prepare.
9 Expert Tips To Instantly Improve Your Business’ Cash Flow
There are many reasons why you may want to improve cash flow in your business. Maybe you’re looking to free up some cash to put towards growth, or maybe you’d like to build up your cash cushion to protect yourself from any bumps in the road.
Common Inventory Management Mistakes: A Closer Look
Inventory management can be overwhelming. There can be an incredibly large amount of tangible inventory, which can translate to a huge amount of responsibility and pressure to manage this inventory properly.
Penny pinching? Here are some ways to reduce costs
With global recessions, increasing oil prices and increasing competition, saving money wherever possible and thereby maximising profits is the name of the game.
Should Your Business Consider Discount Pricing?
Choosing a pricing strategy is a difficult decision, but one that every business needs to make. Pricing strategy affects most aspects of a business, including its revenue, market share and profitability.
6 warning signs that your business is outgrowing your ecommerce platform
There are many factors to consider when you’re selecting an ecommerce platform, and when you first start selling online, it can be hard to find one that’s the right match.
4 employee wellness ideas that your employees will love but don’t cost a fortune
The thing is, employee wellbeing and happiness isn’t just about nap rooms, onsite massages, and cafeterias serving healthy food and snacks (though that would be nice!)
6 Retail Books You Need to Read
Helpful and informative retail books abound everywhere you look these days.
6 Tools Businesses Need to Get Their Finances in Shape
You need to keep track of transactions for the tax office, lenders, but most importantly for yourself, as a business owner.
How to ensure your jobs are profitable
If you’re in business, making decent money is important. Sometimes, though, it doesn’t always work out the way you’d planned...
Accurate Inventory Costing: Why It’s Critical for Success
Even if a business has some other, high value, assets such as factory plant, inventory is likely to essential to the business’ ability to trade profitably.
Common mistakes made when calculating payroll costs
Knowing what your payroll costs are – daily, weekly, monthly and yearly – is an important part of running a successful business.
How to Upsell and Cross-Sell in Retail: 6 Pointers to Implement in your Store
Picture this: You’ve just about closed a sale, and the shopper made up their mind to buy a product. What do you do?
REDEFINING YOUR POINT OF SALE WITH A MODERN POS PLATFORM
It doesn’t matter how large or small your store is, or how many of them you’ve got—if you’ve got a point of sale (POS), you’ll see big benefits in switching from a simple cash register to a full-featured, cloud-based POS platform.
THE SIMPLE WAY FOR CUSTOMERS TO BUY NOW AND PAY LATER
When a visitor spends time browsing your online store or bricks-and-mortar outlet, they’re looking for something. And when they find it, they’ll be tempted to buy it.
Three Lessons Retailers Can Learn from Craft Brands
Retailers have historically dominated the commerce landscape. Several years ago, industry trends and top products were set by the stores selling them.
Why Accurate Costing is Vital for Success
Inaccurate information about your company’s expenditure can greatly inhibit your capacity to make and maintain a successful business.
Watching China in 2017
China-watching is mandatory for many people in business.
The world’s most-populous nation looms large on the global stage in politics, commerce and sport. Its 300 million aspiring middle class citizens – still a small part of the total population - are increasingly sophisticated in their consumer activities, travelling a lot more and further, and pursuing business interests on all continents and the South Pacific region.
The Elephant in the Warehouse – Inventory Carrying Costs
It’s time to address a subject that a lot of companies fail to notice or incorporate into their business planning – the costs of carrying inventory. Inventory costs money to purchase, this much is a given; however the cost of the inventory goes far beyond that. Typically, (if accurate values are not calculated on a case-by-case basis) the total carrying costs of a product are 25% of its value and composed of capital costs (15%), storage costs (2%), servicing and handling costs (2%) and the cost of risk (6%). Let us look at these different components of inventory carrying costs more closely.
How excessive percentage-based fees can warp risk and return
Investing is all about risk and return: get the balance right and be handsomely rewarded.
The structure of percentage-based fees often tips those scales in favour of investment platforms and fund managers. Once their asset base grows large enough to cover operating costs, natural market growth and guaranteed inflows create enormous profits, no matter what the outcome for investors.
3 Ways Forecasting Will Help You Navigate Business Loan Rates
When considering a business loan, most people will evaluate affordability based on the advertised interest rates. But the truth is that if you compare only the interest rates, you could waste money, or end up with a deal that isn’t the best fit.
Craft Beer and the Race for Hops
The craft beer revolution has sparked a unique production for breweries both small and large. Beer drinkers everywhere are seeing an emergence of eccentric flavors and quirky names fill the taps at their local pub. Not only are beer drinkers seeing this emergence, they are demanding it and as a result craft beer has become increasingly popular over the past few years. This popularity has sculpted the way breweries are operating. Craft beer may be infused with peculiar hues, notes and suggestions of ingredients we never would have thought to be vaguely compatible with beer, yet a few staples remain intact in the beer brewing process.
Want an extra $18k or $200k in the bank? Your accountant can help.
This is the second article in a series of posts about RADAR, a new debtor analysis and cash flow advisory tool for accountants from Debtor Daddy. This article focuses on two pieces of information available in RADAR, Debtor Days and Cash per Day.
Getting out of the cashflow trap for good: The first step is to admit your clients have a problem (with debtors)
This is the first article in a series of posts about Debtor Radar, a new debtor analysis and cash flow advisory tool for accountants from Debtor Daddy. If you’re an accountant you’ll be able to learn more here.
Our goal with Debtor Radar is simple: Help more small businesses solve the cash flow troubles caused by debtors.
Get big wins by customising your financial literacy program
If you’ve just appointed your first fresh-faced Gen Zeds to your staff (anyone who’s just out of school and are aged 15-19), you could have up to five different generations to manage at work. In fact, these days, it’s not at all uncommon to have a wide range of generational diversity.
Four great ways to absolutely, definitely get your overdue invoices paid
It’s often how you say something that determines whether you get the result you want. This applies in financial services, marketing and even tax collecting.
In one experiment by the Nudge Unit they improved the payment of vehicle taxes by using simple plain language, “pay your tax or lose your car”. In fact HM Revenue & Customs attributes the recovery of an extra £210 million a year from taxpayers by using behavioural insights in its letters i.e. changing the words to influence behaviour.
How to write a Kick-Ass overdue invoice letter
We’ve all been there before. You’ve called about those overdue invoices once, maybe twice, maybe three times, and payment still hasn’t been made.
What to do next? Throw up your hands in despair? Give up on it as a lost cause? No way, Jack. Not in this economy.
Why creating a profit and loss budget is critical for success
One of the most overlooked and under-practiced habits in today’s businesses is creating annual profit and loss budgets. But why is this so critical for your business?
With a profit and loss budget, you’ve considered and developed an understanding of the key areas in your business that really make your profit and loss come to life.
9 ways to squeeze more profit out of every business day
It’s the Holy Grail of business: increasing the number of profitable hours in a day. Short of asking staff to do more overtime or take shorter breaks, how do owners and managers coax more revenue-raising activities out of every employee and every subcontractor on every shift? And how do they become more effective at making decisions that will boost business efficiency every week?
Avoiding the cashflow surprises that could kill your business
We all know that cash flow is king. But just how much sway does it have? Well, you might want to ask the nine out of 10 small businesses that have failed because of cash flow problems. That’s, right, according to D&B, 90% of small businesses close their doors because of poor cash flow management.
2 minute tutorial: The difference between cash and profit
If there’s one phrase found on the lips of finance-conscious small business owners more often than any other, it’s surely this old chestnut: “Cash flow is king”.
But how often does the average small business owner actually walk the talk of ‘cash is king’? Could it be that the simple distinction between ‘cash’ and ‘profit’ is actually unclear for many SMBs? And just what is the difference?
Track small business cashflow without spreadsheets
If you track income and expenses on a spreadsheet, you could be losing sight of how your business is performing and wasting a lot of time on data entry. There are low-cost alternatives that allow you to monitor business cashflow really simply.
Manage a cash gap in your business
One of the tougher challenges for many trade businesses today in terms of finance is what’s commonly referred to as a cash gap.
A cash gap is a lag which occurs between income and cost of goods sold (COGS); that is, cash inflows and outflows. Businesses that suffer from a cash gap may be profitable on paper, but have cash flow problems because they have to pay their suppliers (COGS) much earlier than they receive money from their clients (income).
How to Approach Your Bank for Funding
Applying for funding from a bank can be daunting. It’s a lengthy process which involves jumping through hoop after hoop with no guarantee of success.
But it doesn’t have to be that way, follow our guide to ensure you go into the loan process with the correct information and watch your chances of approval soar.
Hit a Profit Plateau? 8 Breakout Ideas for Small Businesses
Starting your own business can feel like scaling Mt Kilimanjaro. You dig your feet in, climb, and pray for the best. It’s an exciting, chaotic, and hope-filled journey… But what happens when you reach the top of the mountain? Is there anywhere to go but downhill?
Unfortunately many small businesses grind to a halt - or even start to decline - after climbing their first mountain. This is known as the small business profit plateau. Your company is finally up and running smoothly, but its exponential growth suddenly stops. Your profits start to flatline. It feels like your team is working twice as hard just to maintain the same ROI.
5 things you should consider when choosing a bank for your business
Choosing a bank is one of the most important decisions when starting a small business.
It’s as important as choosing where you’ll set up a brick-and-mortar store, developing a business strategy or deciding who you’ll partner with.
Choosing a bank should be the start of a long and fruitful business relationship.
Get paid faster with these 6 invoice tips
No one likes late payments from their customers. Late payments have a negative effect on cash flow. Chasing customers for payment takes valuable time. Prevention is better than cure when it comes to getting your invoices paid on time. Here are some tips to make your invoices highly likely to get paid quickly.
6 Business Villains and their Evil Ways
In light of the Philip Green pension scandal at BHS, we thought we’d take the opportunity to educate you on some of the most notorious business villains.
From revealing industry secrets to mistresses to throwing lavish parties funded by fraudulent loans, these anti heroes have committed some of most lucrative and luxurious (and rash) crimes ever recorded.
Alternative Finance Options for Business
Since the recession in 2008, there have been many complaints that the banks aren’t lending to SMEs. As a result businesses are increasingly seeking out alternative finance routes to access funding.
Avoiding the awkward: How to talk to your customers about debt payment
From freelancers to fencers, techies to electricians, if you issue invoices as part of your day-to-day business, you will have experienced the frustration of not having those invoices paid on time.
And the part that really blows? The cringing follow-up phone call where you try to coax payment out of the client while not damaging your relationship.
It’s not me, it’s you: How (and when) to fire a bad customer
Some customers are simply not worth having – they cost you more than the revenue they bring in. They consume a disproportionate share of time and money, and create stress by paying late. They disrespect your people, complain often, and expect the earth, yesterday, and all at a rock-bottom price.
Where’s my money, man? The real reason your debtors pay their invoices late
If you go by the statistics, it’s a stunningly common problem: 115 million small businesses worldwide say they are struggling with the complexity and stress of managing delayed receivables.
5 Most Common Reasons Businesses Seek Funding
60% of SME businesses (defined as businesses with between 0 and 249 employees) sought some form of external funding in the last three years, says a British Business Bank Survey published in February 2016. Businesses need finance for a variety of different purposes, but there are some common reasons why businesses apply for funding. This can include loans for working capital, to buy machinery, to hire more staff, or even re-finance existing loans to reduce monthly costs. Read on to discover the 5 most common reasons that most businesses apply for finance.
The top 3 legal services you may need and what you should pay for them
Whatever your sector, there is one rule of thumb which could save you some serious money when instructing a lawyer. This insight may not sound revolutionary, it may not sound groundbreaking, but your wallet will thank you.
What could Brexit mean for my small business?
Are you considering what the legal implications might be for your business if Britain does vote to leave?
Several areas we see businesses concerned with are adjusting business contacts, managing your workforce, and intellectual property rights.
It’s important to realise though that changes will not happen immediately. There will be a period of time when the United Kingdom can negotiate its future relationship with the European Union (EU). The process is regulated by law by Article 50 of the Lisbon Treaty.
5 ways to speed up your invoicing
Do you spend a lot of time entering invoices? At Xero, they're committed to helping you shave hours off your invoicing workflow. Here’s a grab-bag of ways you can use Xero to speed up your invoicing. Some ways might not suit you, it’s a case of picking the ones that make sense for your business.
How to Prevent and Handle Shoplifting in Your Retail Store
It goes without saying that shoplifting is a major problem in retail. A 2014 study by the National Retail Federation found that shoplifting accounts for 38% of shrinkage, and was costing retailers $32 billion a year. That’s a huge chunk of revenue. To help you keep the income you deserve, we’ve put together some tips for preventing and dealing with shoplifting.
The 3 worst days you’ll face as a business owner and how to deal with them
As a small business owner, you’re going to have good days and bad days. Some days will be worse than others.
Part of coping with the darker days that come with managing your own operation is being primed and ready to handle them when they arrive.
This involves building a network of advisors around you, hiring the right team and implementing the right technology so you have all the resources to push through and come out the other side with a healthy and stable business.
Why do I need a business plan?
Do you want to expand your business, be more competitive in your industry and achieve certain goals?
If you answered yes to any of the above, you need a business plan!
Whether you’ve just started out or you’ve been running your business for years, business planning can be the key to your success.
We’ve laid out three key reasons why you need to get started on your business plan today.
Avoid these 4 estimating errors to improve your profitability
The profitability of any job undertaken by a field services business can vary significantly from expectations at the time the estimate for that job was created. Removing this variability and delivering consistent profits should be the goal of every business owner.
How Receipt Bank Will Make Your Business More Productive
Hands up if you recognise the process of; receiving an invoice, getting it to your bookkeeper, making sure it’s entered into your accounts, filing the invoice and then storing it for several years…
How to change your pricing without destroying your client relationship
It’s that time of the year again – the time when you’re looking over your books and seeing what worked and didn’t work. You’re thinking about goals for the year ahead and wondering how you can improve profit in your company. And one simple solution is staring you in the face: you can raise prices.
Improve cash flow: tips for small businesses
Cash is often referred to as the lifeblood of an organisation, a key factor that determines business success or failure. In many cases, cash is vital for daily survival; a small business that doesn’t have enough cash on hand to pay suppliers might not be able to open the next day.
Keeping a positive customer relationship – as easy as saying “Thank you”?
As a small business owner, it’s quite likely you play both the role of salesperson and debt chaser. On one hand you want to keep the relationship positive so you can continue selling to that customer, but on the other hand you need your bills paid for your business to survive. Maintaining customer loyalty and satisfaction while keeping a credit control policy that’s abided by can (at times) put you in an awkward position.
Budget 2016: Smallest businesses the biggest winners?
Founder and CEO of the Bright Ideas Trust, Tim Campbell, came to visit our new London office yesterday. We cornered him and our Managing Director, Gary Turner, to discuss why this could be one of the most significant Budgets for small businesses that we’ve seen.
4 ways to stamp out fraud in your small business
One of the biggest troubles small business owners face is access to capital. So activities like theft or fraud can cripple a small business in a heartbeat.
7 ways to avoid cash flow surprises that could kill your business
We all know that cash flow is king. But just how much sway does it have? Well, you might want to ask the nine out of 10 small businesses that have failed because of cash flow problems. That’s, right, according to D&B, 90% of small businesses close their doors because of poor cash flow management.
Five steps to starting a business in the New Year
If January 2016 mirrors the years that have gone before, it will be the busiest month in the calendar for people starting a business. Returning from Christmas to an unfulfilling job and a burning idea to turn a hobby or passion into a way of making a living, people in their droves will take steps to become their own boss. Will you be one of them?
How to avoid estimating mistakes for large projects
Inaccurate estimations can cause drawbacks in the process of important projects. An electrical contractor who ends up buying more materials than is truly needed, for example, might waste a lot of money. And, inversely, an electrical contractor who purchases less than the job requires might miss lower prices offered by wholesale arrangements, and waste time procuring all the necessary items for the completion of the project.
Getting your invoice right
Having well structured and timed invoices is essential to getting your invoices paid (and paid on time).
INFOGRAPHIC: How to stack the odds of getting paid on time in your favour
Running a business is a high stakes game, afterall it’s your livelihood… it’s you that has to pay the mortgage / rent and put food on the table. Getting invoices paid on time (or at all) is an ongoing challenge for many small businesses, especially in services where you’re often doing the work prior to getting paid.
Fortunately there’s a bunch of measures you can put in place to defend yourself from sharks, flakey customers and downright back luck. So we’ve put together a handy infographic that you can print out and keep nearby to remind you to stack the odds in your favour when it comes to getting paid. Enjoy!
According to 3 successful business owners this is the one thing you need to succeed
According to the Small Business Association, about half of all new small businesses survive five years. And only about 33 percent survive ten years or more. Having a solid plan in place to manage cash flow is essential to ensuring that your business can survive.
Are late payments crippling small businesses?
Small businesses have it tough within their industries, especially in the months and years before they have gained a foothold in the marketplace with a dedicated customer base. They have to develop relationships with suppliers, advertise themselves and conduct their business perfectly with all outside parties in order to create a positive impression that will keep people coming back. However, even when they have succeeded in doing all of that, they will still be faced with one problem which is prevalent in small business dealings: getting paid on time.
How to get paid faster
Invoicing clients should be fun - it’s the final step between your hard work and hard cash! But often it’s a stressful process filled with friction and sometimes fiction!
Float - The simple cashflow forecasting tool for businesses
Float is an online cash management and forecasting tool that helps you manage your business and keep on top of your cash flow. By projecting your future cash in the bank it’s easier to make the right decisions for your business.
How to Discount in Retail: 5 Tips for Running Sales Without Killing Your Profits
Discounting is one of the most popular (and arguably among the most effective) ways to drive sales.
How to reduce your risk of bad debtors, starting today
Talk to any credit control expert and they’ll tell you the sooner you follow up an overdue invoice the better. You’ll not only get paid sooner, but you’ll also send a clear signal to your customer that you take your payment terms seriously.
Are You Selling All The Hours You're Paying For?
If you employ people to provide services to customers, it’s vital to manage the hours invoiced to customers compared to those you pay to staff. Reason being, the differential is potential lost income to your business and precious profit.
How to boost profits using behavioural science
Setting a price for your product or service can be difficult to get right. We think we’re rational when we assess the value of something. But there’s actually a lot of factors, including the prices of competitors and our own emotions. Understanding behavioural science is key to setting the right prices and improving your profitability.
Summer Budget: What it means for UK small business
Chancellor George Osborne announced a tough Summer Budget yesterday in an effort to turn the UK’s whopping £70 billion deficit into surplus. But what does it all mean for UK small businesses?
Xero UK MD Gary Turner shares his thoughts on the pros and cons of this year’s Summer Budget.
3 Ways to Help Your Small Business Get Cash Flow Positive Fast
No matter how innovative, sought after or profitable your small business may be, without cash in the bank, you’re going to face some serious struggles.
Is Revenue A True Predictor Of Success?
“Success.”
Typically defined as: ‘the accomplishment of an aim or purpose.’ (1)
Success means a lot of different things to different people. Success may mean wealth, or it may mean happiness. It may mean fame, and for others it may mean power. But can revenue be a true predictor of success?
