Financial statement

Growing your business – 3 Key Tips

Growing your business – 3 Key Tips

There comes a point when entrepreneurs/founders want to expand and grow their business, be it adding a new service/product, opening a new location or adding staff to grow existing services. I would recommend 3 key tips for businesses to consider before embarking on a growth phase. 1. Planning for growth…

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…

3 Key Traits of Successful Entrepreneurs

3 Key Traits of Successful Entrepreneurs

I have been fortunate to meet several entrepreneurs in my career. However meeting three successful ones recently and discussing how they developed their respective businesses, made me conclude that they have similar traits that make them successful. Here are my conclusions on the 3 key traits it takes to be a…

Why startups fail – 5 Key Reasons for failure and how to overcome them

Why startups fail – 5 Key Reasons for failure and how to overcome them

Startup failure rates are enough to put any budding entrepreneur off – in the UK it is estimated that 2 in 3 businesses fail in the first 3 years and from the Department of Trade and Industry figures, stats show that 70% of businesses fail in the first 10 years!…

Top  10 Tips on successful Debt Collection

Top 10 Tips on successful Debt Collection

One of my most read blogs is on effective credit control – see http://bit.ly/OhRw5E Debt collection is one of the most important business functions to maintain healthy cashflows and grow the business. So it is worth repeating the top tips for effective debt collection. Here are my top 10 tips:…

How to Value your Business

After getting ready for a business exit, the first thing that has to be done is to value the business. This is when the fun starts as there is no straight forward calculation that can determine the value of your business. The most important thing to remember is that the…

4 Key Exit Strategies for your Business

4 Key Exit Strategies for your Business

You’ve done the hard work and have a thriving business – what next? If you haven’t planned it already, it’s time you thought about how you exit and make some money for all that effort. Here are 4 key exit strategies to think about. Buyout This is the usual exit for a…

EBITDA – it’s importance in your Business

EBITDA – it’s importance in your Business

EBITDA is the figure commonly used to measure a company’s value and how well it performs against other businesses. EBITDA stand for earnings before interest, tax, depreciation and amortisation and isn’t usually shown separately in formal financial statements. Usually its earnings before interest but after depreciation that’s shown in the…

Off Balance Sheet financing – what does it mean?

Off Balance Sheet financing – what does it mean?

It’s a form of financing used to fund assets that do not have to be shown in the balance sheet. And the next question, is why? Well, the nature of the financing is such that the total liability doesn’t have to be recorded on the balance sheet thereby making the…

5 minute Guide to understanding a Cash Flow Statement

5 minute Guide to understanding a Cash Flow Statement

What is a Cashflow statement? It shows how the business spent the cash it earned during the period and is usually the easiest financial statement to understand. Essentially, it is a reconciliation of how the cash amounts on the Balance Sheet have moved from one period to the other by…