Managing a business isn’t easy and if you don’t know much 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…
We all make mistakes. It’s a fact of life. The key to success is how we deal with failure and overcome the negatives. Whether it’s a business startup or your business hitting a recession, failure can be painful. In business, failure can be even more difficult to deal with. Or…
Free cash flow is a financial indicator that is favoured over ROCE, ROI and other ratios to gauge a company’s health. So it’s important for entrepreneurs to understand how important it is in their business. Free cash flow is how much cash is left in the business after all running…
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…
At some stage, every entrepreneur and business owner has to realise an exit from their business. The most important thing is to maximise the business value when you sell your business. I have already written about the key exit strategies in an earlier blog http://bit.ly/1eDQ4DF Whatever strategy you choose, it…
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…
What is a Profit & Loss Account or Income Statement? Most business owners and managers will understand what it means and would have seen a few in their time but some won’t understand what to look for and what it should really contain to make sense of how their business…
Every business must have key performance indicators (KPIs’) to measure their progress against given objectives. KPIs’ can measure whatever you want but to make them a really powerful tool in your business, they should measure the key goals you have set yourself for the business. KPIs’ should be SMART –…
An experienced finance director can add significant value to your business from day one and help maximise the value of your business. Lack of financial management can destroy a company pretty fast, however good the product or service is. Here are 5 critical signs that you need to hire a…