Financial advice for business owners

Businesses of all shapes and sizes need to manage their money – it could be described as one of the key ingredients to being successful.

While knowing what to do might come naturally to some, others need to rely on help and advice to ensure that things progress smoothly. Most businesses will seek advice that gives them a competitive edge; something that ensures they can fend off rivals and boost opportunities.

Smaller businesses in particular can face a number of challenges but there are several easy steps that allow companies to get ahead – it’s all about knowing what to do.

Access capital early

A number of stumbling blocks may potentially delay access to finance so it’s important for a business to consider their options at an early stage. Banks have more money to lend now than at the height of the recession and as long as companies have a good credit rating and a clearly defined business plan, accessing finance could be possible.

This finance could then be used to expand a company or even to acquire a rival, providing a boost to any business. Getting finances in order with Sage UK accounting software can help to decide what levels of finance are required for any particular project.

Alternatively, these finances could be used to refinance older debts or to establish a credit reserve for the future to protect against any potential set-backs.

Social media vs traditional methods

Social media activity is on the rise with just under 2 billion people using social media. It is a good plan of action to make sure you are on top of social media and using it to your advantage. According to the Close Brothers Business Barometer, around a third of businesses use social media when going in search of business advice. There’s no denying that social media has caused a change in how we communicate, share information and manage parts of our businesses. However, despite the accessibility and the time saved in using social media for business advice it is essential to get trusted professional advice from an accountant. Collaborating with an accountant is part and parcel of using Sage One software. To have a positive impact on your business it is fundamental to have one to two hours of professional advice to make sure you are handling your finances correctly.

During this time you can combine your accounts software and your accountant to help create a cash flow forecast for your business. This can then be utilised to identify periods when additional funding might be needed.

For general discussions around your business and small tip bits on what works well social media can be a great tool to utilise. However, it is important to choose the right software and accountant for any critical work and advice on the finances of the company.

Don’t be scared to start small

Conquering the world takes time and history tells us that even the grandest of armies and civilisations can take time to grow in size and stature.

A business should be no different – the best ideas can be formed in small offices and one-bedroom flats, so having a large office in the beginning is both unnecessary and a waste of money.

Similarly, there is no need to have products that are ready to market straight away as if the ideas are good enough, other investors will likely wish to get involved.

Many multi-national firms test new products on small target markets before launching anything on a global scale – Starbucks is a great example, as it looks to refine its new products to ensure they are as good as can be before launch.

This technique is very cost effective and it means a business can focus on what its client wants – boosting the likelihood of further sales and success.