Small businesses need cash on hand to keep operations running when problems arise Owners shouldn't be afraid of using debt to raise more cash to finance their business operations Paying off debt in a timely and responsible manner can help you build the higher credit scores that banks valueWhen you own a small business, cash is king. Preserving your capital helps you pay suppliers, cover weekly payrolls and still keep the lights on when the business inevitably runs into problems. "Cash--it's like ammunition," Tom Maoli, a small-business expert, told CBSN. "If you're at war, you want as much ammunition as you can possibly have." Cash flow problems can be common with small businesses. Maoli suggested owners try to keep as much of their working capital as possible and instead seek alternative funding to finance more of their operations. Owners can get loans from banks or even the U.S. Small Business Administration (most funding applications can be done online) and they can expand … [Read more...] about How small business owners can solve cash crunches
Financing for small business
Being paid late causes business owners severe personal stress and huge professional damage. Why aren’t more firms using tech to get their bills settled on time?Many business owners across the United Kingdom are reporting that getting paid late is more of a concern to them than the country leaving the European Union. Late payment is the problem that just won’t go away for small and medium-sized businesses (SMBs).Eight out of ten SMB bosses fear they may not be able to cover their own work-related bills because of being paid late by customers, according to our recent research. More than half have had to dip into personal savings or use emergency finance to pay their company expenses as a result. Yet, far too few realise that changing up your tech stack could in fact be the cure to this all-too-common headache.Summertime - and the living isn’t easySummer is the worst time of year for getting paid, two-thirds of businesses say. In fact, almost half of SMB owners only take … [Read more...] about Can technology solve the problem of late payment for small businesses?
A management buyout might be the right exit strategy for your business - and a way to reward hard-working staff. Picture: Getty Images/iStockphoto Archant One of the key questions on business owners’ minds is: “What does the end-game look like for me?” There are several options, of course, which can include selling it or passing it to the next generation of the family.Another option is to give the opportunity to those who have helped them build it – and it is this that I want to cover.Management buyouts (MBOs) allow the management team of a company to acquire the business that they work in from the existing owner, usually with external financing support. The management team then employs its own expertise to grow the business, improve its operations and generate a return on its investment. Here are four stages to consider before embarking on that journey.Identify talent within the businessIn any management buyout, the quality of the management team is often the … [Read more...] about Matthew Peek of Barclays: Is a management buyout right for your business?
Guy Tolhurst realised that his mental health was in a bad state when the only way that he could get up in the morning was if a friend phoned to coach him out of bed. “It wasn’t every day, but I would often wake up early, my mind racing,” he says. “My thoughts became all-consuming and it felt like the weight of the world was on my shoulders.” A considerate neighbour, who knew how much the entrepreneur was struggling, would also bang on his front door to make sure that he was on time for morning meetings. “When you’re surrounded by your thoughts, it’s so hard to clear them,” says Tolhurst, who's the founder of finance training company, Intelligent Partnership, and investment advice website, MICAP. His experience is not unique among small business owners. One in three has personally suffered from anxiety or depression in the past five years, according to a recent survey of 1,000 SME bosses by the bank, Aldermore. … [Read more...] about The stress and loneliness of being a small business owner
Fast, agile and lean are three words that SMEs often use to describe themselves. These are the secret ingredients, they say, that enable them to disrupt markets, take on the big players, and innovate and expand at speed. Except that they’re not, because many are currently suffering from growing pains. Drawing on interviews with 500 small and medium-sized enterprise directors in England, a study by the British Business Bank found one in three wanted to grow their operation, but were unsure how. Awareness or knowledge of alternative finance was a key factor, with only 5pc of companies quizzed having considered early-stage equity investment and 7pc having thought about crowdfunding via websites such as Kickstarter. “Many small business owners find it hard to identify or are simply unaware of the right type of finance to help realise their growth plans,” says Graeme Fisher, managing director of the Government’s economic development bank, which supports … [Read more...] about Why the UK’s small business are struggling to grow