The foundational goal of any business is to make a profit. As a business owner, that’s one of your key financial aims – to make enough sales, at a big enough margin, to generate profit from your enterprise. But how does profit differ from cashflow? And why is cash king?
Keeping your business cash liquid – the difference between cashflow and profit
5 Pillars of Growth
Wanting to increase your profit and improve your cashflow but don’t know where to start? Watch our video on what we refer to as the “5 Pillars of Growth” – 5 areas in your business where you can choose one or two strategies to make an impact on your bottom line and bank account. What you can do in your business to achieve business growth.
5 questions to ask when you are buying a business
Purchasing an existing company is a great way to expand your business empire. You can buy out a close competitor, or dip a toe into a new industry and expand your reach as a business group. But whatever the reason for the acquisition, you need to ensure you’re not buying a lemon!
Inventory
Keeping track of your inventory, the time it takes to sell and the profit made on each product is essential if you want to manage your business effectively.
Tracking the movement and value of your inventory is essential for pricing, insurance, accurate tax returns and selling your business.
Get control of your finances
Running a successful business requires more than just a great product or service. It’s crucial to have a solid grip on your finances to ensure long-term growth and sustainability. By taking control of your business finances, you can make informed decisions, optimize cash flow, and pave the way for future success.
New top tax rate for Trusts – what does it mean for you?
Budget 2023 contained a few surprises, but the change to the tax trust rate wasn’t one of them. As had been hinted at a few times, Grant Robertson lifted the tax trust rate from 33% to 39%, bringing it into alignment with the top personal income tax rate. This change is from 1 April 2024.
Understanding working capital to maintain business success
If cashflow is the lifeblood of your business, then working capital is the health check you should regularly undertake to keep your business alive. Regularly checking working capital will play an essential part in maintaining business success during these times of greater economic insecurity.
What are the risks of taking out a personal guarantee on a loan?
To fund the growth of your business, you’ll almost certainly need to take out a business loan at some point. But many lenders will ask you to provide a personal guarantee against this business loan – and there’s a risk element to consider when taking out finance.
Cash flow forecasting puts you back in control
Cashflow forecasting is an increasingly important tool for any finance team. With a better view of your future cashflow position, you can make well-informed decisions about your finances.
What is Price Elasticity of Demand?
Before you price your product it’s important to understand how sensitive your customers will be to price changes. This means getting an understanding of your market, your competitors and how price elastic it is.