Advertisements

How Your Small Business Can Maximize Profit & Minimize Loss With a Financial Plan

As one of the most essential aspects of a business proposal, the financial plan utilizes current financial data to project long-term profits and losses for your company. As a business owner, having a strong financial plan helps you identify potential issues and discrepancies while it’s still early enough to make changes. Having a good financial plan handy also improves your odds of securing funding from banks and other investors by showing you’ve done your due diligence.

Still, first-time entrepreneurs often struggle to create these all-important documents.

Below are five components every financial plan should have, along with suggestions for collecting the necessary data to plan your business’ future.

1. Income statements

Income statements reveal revenue, expenses and profits over a given period of time. Start by making a list of all the costs and expenses associated with running your business. This may include raw materials, suppliers, employee salaries and rent costs. Then record your revenue, which is the money you receive in exchange for providing goods and services. By subtracting your expenses from total revenue, you can determine whether your company can expect to make a profit or suffer a loss.

This information is crucial not only for planning purposes, but it can also help draw potential investors to your business.

While income statements for existing businesses convey data from the past one or two years, startups must instead forecast this information based on their research. When drafting your company’s first income statements, you may need to project profits and losses using information from similar businesses in the area. The goal is to determine if your company can support itself moving forward and make budgetary changes as needed.

2. Cash flow

Cash flow projections estimate the amount of money that will be entering and exiting the business on a regular basis. Determining net cash flow requires simply subtracting cash outflow from cash inflow, which reveals only those funds that are actually available at a given time.

Just as with your income statement projections, you’ll have to create a plan of how you expect your cash to flow based on rational observations, predictions and your own research. Again, while it seems frustrating, compiling a schedule of when cash comes in and out can give you (and investors) insight into how much cash you’ll actually have available to operate your business.

By keeping accurate cash flow statements as your business matures, you can identify problem areas before they grow too large to contain. For instance, if your projections suggest you need more immediate cash, you can try strategies to help bring it in, such as turning over inventory more quickly or reducing the length of your billing cycle. However you use it, a cash flow’s primary functions are to assess your company’s financial health and help you make business-development decisions moving forward.

Another thing to keep in mind: When calculating your cash flow projection, you won’t be able to use any revenue amounts from unpaid invoices. The reason? That revenue hasn’t been collected yet and thus isn’t available to go in or out. Yes, you may be able to declare the money from unpaid invoices in your revenue projections, but not as cash on hand.

3. Balance sheet

balance sheet provides a snapshot of a company’s assetsliabilities and equity at a given time. As its name implies, a balance is struck between a company’s assets, which equal its liability added to the value of its equity.

First, take time to list all assets, including accounts receivable, savings, inventory and equipment. Next, you should detail all liabilities, such as accounts payable, loan payments and credit card balances. Lastly, you can add up the company’s equity, which may take the form of owner equity, investor shares and earnings from stocks. When you’re finished, check to make sure that the total value of assets equals that of your liabilities plus your equity.

As you may expect, your balance sheet can have a significant effect on your business’ ability to secure the funding it needs to get off the ground. Learn more about how to create a detailed balance sheet to track your startup’s liabilities and equity.

4. Break-even analysis

It’s no secret that startups rarely turn a profit at the onset. If and when your business does cross the threshold from red to black, it will have crossed the break-even point. The break-even point occurs when the expenses of running your business equal the revenue from your products and services. To increase your odds of reaching that crucial turning point, take the time to create a break-even analysis as part of your financial plan.

Along with your company’s fixed and variable costs, the document should include projected prices and account for the value of inflation. Not only does a break-even analysis show potential investors that your company has the potential to succeed, but it also enables you to make better decisions regarding resource allocation. If your break-even point is too high, you may want to consider ways to reduce your cost of business. This might include shopping for new suppliers, increasing prices or even temporarily working out of your home.

5. Financing schedule

Most of us can’t launch a new business entirely on our own. Because loans are an unfortunate fact of life in the startup world, every business plan should include a loan summary and financing schedule. Take note of the types of loans incurred, including interest rates and expected terms as well as securities information. After all, potential lenders want to know that you have a solid plan to pay off existing debts before investing more money in your business venture.

If you’re thinking of starting your own business, then you’ve probably heard the bleak statistics. According to one report, as many as eight in 10 startups fail in the first 18 months. To give your business a fighting chance, you need to have a strong financial plan in place before you launch.

By: April Maguire

Source: How your small business can maximize profit & minimize loss with a financial plan

1.37K subscribers
In this video, Kelly discusses how to maximize profits in business in just three simple steps. By taking advantage of what resources you already have within your company, you can maximize profits and grow your business. Your company can figure out how to improve sales by analyzing what your business is doing so already…and what your business is not doing. By putting these steps into action, you can figure out how to attract customers and increase profits Ask yourself: • When was the last time you last raised profits within your business? Are you getting what you want? • Is your business selling the right kinds of stock including individual packages, group packages, etc. for your services? If not, these kinds of products would bring in money that your company is not seeing already. • Are you engaging with previous customers? If not, these customers are just as important to figure out how to attract customers to your business. Want a quick overview of topics? Check out the time stamps below: 00:49 – Charge what you’re worth to grow your business 1:42 – When was the last time you raised your rates? 2:08 – Consider having reoccurring revenue to maximize profits 2:40 – Fortune is in the follow up! Make it your business growth strategy Learn how to improve your outlook on money but also create more income within your business. Not only will you learn to improve your vision of money but rethink your ideas so you can create new ones. ======================================================== THANK YOU for taking the time to watch these videos!! If you like what you’re watching, comment below to start a conversation! =================================================== To learn more about our program that teaches you how to build and scale your business to create more freedom go to: http://www.KellyRoachCoaching.com/yes ======================================================== Visit the Kelly Roach Coaching online store for products and programs to help you grow your business! http://www.kellyroachcoaching.com/shop ======================================================== **Click Below to SUBSCRIBE for More Videos** https://www.youtube.com/channel/UCwyA… ======================================================== Kelly Roach Business Growth Strategist, Rapid Business Growth Coach, Author, Host of Unstoppable Success Radio http://www.KellyRoachCoaching.com ======================================================== Join the conversation: Facebook: http://www.facebook.com/kellyroachint… Twitter: http://www.twitter.com/kellyroachint YouTube: http://www.youtube.com/kellyroach ====================================================== To learn more about how to grow your business and how to increase sales, watch Kelly’s “How to improve your Money Mindset” video at https://youtu.be/1mo_Fvrgpw4

 

Advertisements

American Express, Amazon, And Barbara Corcoran Partner To Help Small Businesses – Jaime Catmull

1.jpg

As of 2016, there were approximately 28.8 million small businesses, which accounted for 99.7% of all U.S. businesses, according to the Small Business Administration. That’s a tremendous economic force that is fueling the country’s growth and framing opportunity for more entrepreneurs and freelancers to join the ranks. Even with positive signs that point to the ongoing growth in small businesses, challenges remain. For those already operating a business, the National Small  Business Association found that growth can be slowed by economic uncertainty and limited access to credit…….

Read more: https://www.forbes.com/sites/jaimecatmull/2018/11/03/american-express-amazon-and-barbara-corcoran-partner-to-help-small-business/#2c358b413403

 

 

 

 

Your kindly Donations would be so effective in order to fulfill our future research and endeavors – Thank you

The Annoying Habits of Highly Effective People – bartleby

1.jpg

ONE of the time-honoured tropes of writing on business is the detailed description of the life of a corporate titan. Readers are expected to marvel at the stamina of Tim Cook, for example. Apple’s chief executive rises at 3.45am to deal with emails. Spare a thought for his underlings, whose iPhones buzz at 4am every morning. Some subordinates may have the fortitude to sleep through it all; many will be guilt-tripped into answering the boss. Highly effective people often inflict all their idiosyncrasies upon their hapless juniors…….

Read more: https://www.economist.com/business/2018/09/29/the-annoying-habits-of-highly-effective-people

 

 

Your kindly Donations would be so effective in order to fulfill our future research and endeavors – Thank you

How to Plant Ideas in Someone’s Mind – Adam Dachis

1.jpg

Getting someone to want to do something can be tough if you know they’re not going to want to do it, so you need to make them believe it was their idea. This is a common instruction, especially for salespeople, but it’s much easier said than done. You have to look at planting ideas in the same way you’d look at solving a mystery. Slowly but surely you offer the target a series of clues until the obvious conclusion is the one you want. The key is to be patient, because if you rush through your “clues” it will be obvious. If you take it slow, the idea will form naturally in their mind all by itself…..

Read more: https://lifehacker.com/5715912/how-to-plant-ideas-in-someones-mind?tag=manipulation

 

 

 

Your kindly Donations would be so effective in order to fulfill our future research and endeavors – Thank you
https://www.paypal.me/ahamidian

 

 

Online Millionaire Ready To Take You Under His Wing For The Next 5 Weeks And Reveal His Closely Guarded Secrets By QSC

 

This is NOT where we talk about some positive mindset or any of that typical stuff people through around… There is ONE specific thing you need to do that will allow you to hit the ground running and then go on to magnetically attract people to you and turn them into raving fans… which of course leads you straight to the $$$$$$

Time to discover the difference in the types of income streams you can implement into your newly formed business and immediately initiate them ready for big pay days! (SPOILER ALERT: There’s 1 thing we’ll reveal here that very few people know about that makes me $1,000+ DAYS! …and it can be done by complete newbies)

You know you need one, so it’s time we just made it happen… Let’s fire up your very own “list building engine” – this is a very specific 2-phase list machine that will not only build your email list but also automatically make you commissions at the very same time! (NOTE: If you’ve ever worried about “hat to say” or “Not having any value to share with a list” or “what if they don’t like me or I say the wrong things” …this is PERFECT for you

Read more: https://quickstartchallenge.com/sale1

 

HubSpot Launches Small Business Marketing Tool for Beginners – Michael Guta

1.jpg

Small business marketing is not as simple as used to be, and the constantly shifting technological landscape may be partly to blame.

HubSpot’s new Marketing Hub Starter has been created to simplify the process for small business owners.

According to HubSpot (NYSE: HUBS), the Marketing Hub Starter platform was specifically designed with small businesses in mind. With this new solution, businesses will have access to all of their marketing tools in one platform. At the same time, HubSpot is going to be offering comprehensive marketing solutions that are more affordable.

Kipp Bodnar, CMO of HubSpot, explained the challenges small businesses face when it comes to deploying their marketing strategy.In a recent release, Bodnar said, “Historically, small businesses looking for an economical way to get started with marketing have had to cobble together disparate point solutions to perform tasks like sending emails and targeting ads. Unfortunately, what they save in dollars they often lose in time spent trying to connect and manage all of those systems.”

HubSpot Marketing Hub Starter Features

Powered by HubSpot’s free CRM, Marketing Hub Starter removes the need to manage disconnected tools and data on different platforms. This means you will have more time to actually market your business.


You can now convert traffic into leads with ads and forms while engaging with your audience with personalized email marketing.

The email marketing includes drag-and-drop email editor and post-send analytics. And according to HubSpot, the reporting goes beyond email opens and clicks. It tracks returning contacts, top personas, engagement over time, ad performance, and more.

The integrated tools include forms, lead ads, email marketing, list segmentation, HubSpot CRM, and reports.

Marketing Hub Starter comes with all these tools and it is now available starting at $50 per month for 1,000 contacts. There are additional tiers for companies with more contacts.

What is HubSpot?

HubSpot offers inbound marketing and sales software to help organizations attract visitors, convert leads, and close customers. HubSpot provides a comprehensive marketing solution for today’s digital and ecommerce businesses.In addition to tools for email, websites, SEO, marketing automation, landing pages, analytics, social media and blogging, it also provides free education in its academy.

Your kindly Donations would be so effective in order to fulfill our future research and endeavors – Thank you

15 Must-Reads Small Business Owners Can Choose from This Summer – Young Entrepreneur Council

1.jpg

Summer is often a time of rest and relaxation, with plenty of time to sit out by the pool or on the beach with a good book. It’s no surprise that entrepreneurs fill up their summer reading list with books that will help them run their business better. There are the business classics like The 7 Habits of Highly Effective People and Good to Great, but sometimes business owners can find valuable lessons in an unexpected read. We asked 15 members of Young Entrepreneur Council the following question:

Here’s what YEC community members had to say:

1. Quiet by Susan Cain

“I’ve been reading Quiet by Susan Cain and it’s all about introverts in a world that celebrates extroversion. As a leader, there are a lot of cues to take to better craft experiences and environments for both.” ~ Darrah Brusteindarrah.co

2. Rocket Fuel: The One Essential Combination That Will Get You More of What You Want from Your Business by Gino Wickman and Mark C. Winters

“I would recommend this book for growing businesses with a founder that makes too many changes too often (like me). It’s all about clarifying the roles of a visionary and an integrator in a business and learning when the founders need to let go for better execution.” ~ Sunny DesaiDesai Hotel Group

3. The Meditations by Marcus Aurelius

“Marcus Aurelius was a Roman Emperor, but he was also a Stoic philosopher. His Meditations aren’t a thrill-a-minute read, but they are full of insights that can be useful to entrepreneurs and managers. In stressful times, I often think of this quote: “When anything tempts you to feel bitter: don’t think, ‘This is misfortune,’ but ‘To bear this well is good fortune.’” ” ~ Vik PatelFuture Hosting





4. The Third Door: The Wild Quest to Uncover How the World’s Most Successful People Launched Their Careers by Alex Banayan

“Alex Banayan just released The Third Door, a book that took him seven years to write. I love it because it uncovers scrappy ways of getting to the likes of Bill Gates and Maya Angelou, how each of these “mega successful” people have all consistently found not the front door or the back door, but some “third” side door to bust into an industry or career.” ~ Beck BambergerBAM Communications

5. Shoe Dog: A Memoir by the Creator of Nike by Phil Knight

Shoe Dog is a memoir by the creator of Nike. It made me realize that even the biggest companies of our time have gone through the same challenges most entrepreneurs face during their formative years.” ~ Syed BalkhiWPBeginner

6. Present Over Perfect: Leaving Behind Frantic for a Simpler, More Soulful Way of Living by Shauna Niequist

“I love how this book outlines ways to make the most of your time, whether it’s during office hours, with friends or with family. Small business owners are notorious for burning the midnight oil trying perfect their businesses, and this book is an inspirational reminder that busyness isn’t the answer, and perfection isn’t attainable. It offers practical and implementable tips to be more present.” ~ Leila LewisBe Inspired PR

7. They Can’t Kill Us Until They Kill Us by Hanif Abdurraqib

“This collection of personal essays illustrates how empathy works. If small business owners set out to solve problems and be a force of change, empathy is the muscle that needs the most exercise. These essays ask the reader to consider what makes the world around us meaningful, using music as its guiding lens. What if we used a similar principle when deciding how we fit into our customers’ lives?” ~ Sean HarperKin Insurance

8. Transform Your Life by Geshe Kelsang Gyatso

“This is a book by Buddhist Master Geshe Kelsang Gyatso, and it completely changed my approach to both life and work. The focus is on understanding that every experience is a perception of the mind, and that how we feel is based on how we choose to interpret situations. The more positive we are, the happier we become. This has helped keep me happy, which in turn, makes me more productive.” ~ Marcela De VivoBrilliance

9. Braving the Wilderness: The Quest for True Belonging and the Courage to Stand Aloneby Brené Brown

“I was inspired by this book’s message of becoming a true individual. More and more people are associating with people who already share their tastes and ideologies, and we see people with different opinions as “other.” She suggests disagreeing with the parts of your “tribe” that you disagree with and being true to yourself, even if it means having to walk alone and brave the wilderness.” ~ Alex FedorovFresh Tilled Soil, LLC

10. Never Split the Difference: Negotiating As If Your Life Depended On It by Chris Voss and Tahl Raz

“Former head negotiator of the FBI Chris Voss’s book “Never Split the Difference” is a great book to read for anyone wanting to learn how to build their negotiation skills. There’s some atypical advice in there that works such as, “the fastest way to getting to yes is by getting to no.” ” ~ Kenny NguyenBig Fish Presentations

11. Switch: How to Change Things When Change Is Hard by Chip Heath and Dan Heath

Switch shares simple but powerful insights into why it is so hard for people to change their behavior. By sharing takeaways from anecdotes and scientific studies, small business owners can use the shortcuts presented in the book to implement personal change, as well as organizational change.” ~ Stephen BeachCraft Impact Marketing

“This book reveals that people fit into one of the following four tendencies: Questioner, Upholder, Rebel and Obliger. It helps you not only figure out yourself, it also provides insights to others and how they think and what motivates them. This makes it easier for you to work with them and find the best ways to communicate with them based on those qualities.” ~ Vladimir GendelmanCompany Folders, Inc


13. Bad Blood: Secrets and Lies in a Silicon Valley Startup by John Carreyrou

Bad Blood by John Carreyrou is about the collapse and scandal surrounding the biotech company Theranos. It’s an entertaining read, but it’s also important for anyone in business to read as a cautionary tale on what happens when people abandon ethics and run their business in a very secretive way. It’s a good primer on what not to do.” ~ Kalin KassabovProTexting

14. The Consolations of Philosophy by Alain de Botton

“You wouldn’t think this book would give insight to small business owners, but it does. One part talks about Nietzsche, who proposed that we should see ourselves as gardeners in our life and in leadership. A freshly planted garden doesn’t seem like much, but a gardener knows the potential of it and works to cultivate it into something beautiful. The same can be said for starting a small business.” ~ Brian David CraneCaller Smart Inc.


15. The Alchemist by Paulo Coelho

“I’ve read this book many times, and I plan on rereading it this summer. I love this book, especially for small business owners, because it reminds us never to lose hope. If we work diligently toward a goal, and we believe that we can achieve it, we will get there eventually.” ~ Zachary BurkesPredictable Profits

Your kindly Donations would be so effective in order to fulfill our future research and endeavors – Thank you

5 Ways To Create a Better Brand for Your Small Business – Brian Hughes

1.jpg

Your small business brand is like a business card that you present to the marketplace, making it clear who you are and what valuable goods and services you provide. When someone sees your brand you want them to associate it with positive experiences, great products and services, and quality, whether or not they had direct contact with your business. Branding is important to your business success, so you must be intentional about developing it. You could hire an expert and spend tens of thousands of dollars or put in the time and effort to do it yourself. DIY efforts can be very effective and easy on the budget if you know where to look………

Read more: https://smallbiztrends.com/2018/06/branding-help-small-business.html

More References: https://fitsmallbusiness.com/best-free-website-builders/

How to Easily Avoid Billing Problems with Clients – Biz Penguin | Small Business Tips, Ideas and Trends

There are tactics and technologies you can use to handle frequent late payments with grace. Find out how to avoid billing problems with clients.

Source: How to Easily Avoid Billing Problems with Clients – Biz Penguin | Small Business Tips, Ideas and Trends

Tips on How to Make Your Small Business Stand Apart From the Rest | SMALL BUSINESS CEO | Small Business Tips, Ideas and Trends

Make your small business stands out! Here are a few ways you can build a solid foundation for years of dedicated customers and progressively growing profits.

Source: Tips on How to Make Your Small Business Stand Apart From the Rest | SMALL BUSINESS CEO | Small Business Tips, Ideas and Trends

%d bloggers like this:
Skip to toolbar