Cash flow

Profit or cash – what is more important and why?

Profit or cash – what is more important and why?

This is a question every entrepreneur should know the answer to. The answer is that cash is more important in the short-term but both are as important in the long-term. In the short-term, you can make losses and as long as shareholders have put in sufficient cash into the business,…

Keeping an eye on the figures – 3 Key Tips

Keeping an eye on the figures – 3 Key Tips

Managing a business isn’t easy and if you don’t know anything about finance, it’s a sure-fire way of running into trouble. The first thing any entrepreneur or manager has to learn is how to understand some basic finances. Once you learn the basics, it is critical to add to your…

Funding pain remains for startups and SMEs’

Funding pain remains for startups and SMEs’

Raising funding for startups and small and medium-sized enterprises (SME) or even large projects is still a difficult and painful process out there. I had a long discussion with an experienced consultant recently who works with tech startups and his prognosis for the smaller end of fund-raising circa £250,000 was…

10 minute Guide to understanding a Balance Sheet – Follow up

10 minute Guide to understanding a Balance Sheet – Follow up

My blog on the 10 minute guide to understanding a Balance Sheet is the most read even though it is also the longest and tries to deal with some complex items in a simple way – http://bit.ly/XMTzfa I used Apple’s balance sheet for 2012 and since a year or more has…

How to evaluate projects and investments – NPV vs IRR

How to evaluate projects and investments – NPV vs IRR

Every business at some stage has to evaluate projects or investments and choose the ones that will benefit the business most. Usually, it will be faced with a limited budget and spending this capital wisely is critical. This process is called capital budgeting and the most used decision making tools…

How to calculate returns on a project – using Net Present Values (NPV)

How to calculate returns on a project – using Net Present Values (NPV)

Businesses have to make investment decisions all the time. Deciding on whether to proceed with a project can be tricky if you are faced with multiple projects with differing profits and timelines. The most useful tool to use in such situations is net present values (NPVs). In an earlier blog,…

How to calculate returns on investment – using IRR

How to calculate returns on investment – using IRR

If you’re looking to raise funds for your startup, the first question an investor will ask is what’s the return? And if you think that’s easy, it’s the annual profit divided by the investment, you’ll be wrong, e.g. annual profits of £75,000 with an investment required of £250,000 gives a…

3 Key Business Goals to set for your business

3 Key Business Goals to set for your business

Starting a New Year, every business, well maybe almost everyone, will set goals for the new year. Planning and setting business goals for most is an annual event and sometimes it’s called a budget! However, I want to recommend a different course in setting your key business goals. It maybe…

Startup funding sources – Bank loans

Startup funding sources – Bank loans

Do banks lend to startups any more? Probably not is the answer in the current climate. Since the financial crisis, most banks do not lend to startups nor to most businesses they would have before the crisis hit. However, there maybe the odd startup that’s got a business plan and sufficient…

3 Critical Key Performance Indicators (KPIs’) to use in your Business

3 Critical Key Performance Indicators (KPIs’) to use in your Business

KPIs’ (Key Performance Indicators) are set up for absolutely anything these days from measuring SEO performance to customer satisfaction and it’s easy to get submerged in a sea of indicators. Everyone talks about them and mentions them in such jargon that it is vital to keep a clear head of…