FOOD FOR THOUGHT

Before you consider raising equity, it’s important to get your finances in order. Here are ten questions to ask yourself to help determine the financial health of your business.

If work is life and life is work  -  what does it matter if I pay for this personal item on my business credit card? It’s all my money, right? Not quite. Separating your business and personal finances is simply smart business. In fact, it may help you raise capital later on.

Businesses with strong balance sheets are more likely to survive economic downturns and be ready to thrive when the going gets good again. So what does a strong balance sheet look like, and how can you take steps to strengthen yours?

When it comes to looking after your business assets, safeguarding against risks is your best protection. Here are five tips to minimise potential risks for everyday businesses. 

Taking on external finance is a necessity for most growing businesses. However, business owners should have a robust understanding of the pros and cons of external finance before entering into an agreement, and have a repayment strategy in place from the beginning.

Keeping the balance sheet “out of the red” is a top priority for any business owner. To do this and “stay in the black”, it’s important to be regularly scanning the horizon for any signs that you could be heading towards rough financial waters. There several indicators of potential financial trouble.

How should I spend my net profit? This is a question most business owners grapple with when their business starts to run at a profit.

Focusing too heavily on financial KPI’s can actually jeopardise their results. Non-financial KPI’s (explained further below) are mutually beneficial to financial objectives, which means for best results, they should be measured together. It’s important both sets of KPI’s are in alignment with your organisation’s overall goals.

Deciding to change accountants can feel like a big step, but as your business grows it may become a very necessary one. So how do you know when it’s time to make the switch? Here are five questions to ask yourself before making this important decision.

Maintaining a financially healthy and profitable business is a challenge that rests on the shoulders of every board member. Left unchecked it is easy for profitability to be gradually eroded away.