Working capital: you can’t make your business work without it. In this two-part blog series, we’ll take a look at what working capital is and how you can identify and correct inefficiencies to streamline cashflow and support sustainable growth.
Does your firm have an up-to-date cybersecurity strategy that includes encryption? Many entrepreneurs assume that their company isn’t big enough to attract the notice of hackers – but this is a major misconception. Companies of all sizes are at risk of data breaches, and small businesses are increasingly a favorite target. And when hackers strike, the consequences can be disastrous: a recent study found that 60% of small businesses that are hacked go out of business within six months.
In our last blog post, we shared what small business operators need to know about the threat of ransomware attacks. Businesses lose billions of dollars each year to this growing form of cybercrime, and small businesses are especially at risk. Since you can’t necessarily control whether hackers might attempt an attack on your company, it’s important to implement policies and practices that can foil such attempts and prevent losses of money, productivity, and reputation.
Businesses lose billions of dollars each year to ransomware – a form of cybercrime that can also rob you of precious time and data. Ransomware is on the rise and increasingly puts small and midsized enterprises in the crosshairs. This month, we’ll look at what ransomware is, the threat it presents, and how small businesses can protect themselves.
In our last post, we looked at the pros and cons of buying and leasing real estate. Small business owners have a similar decision to make when it comes to other assets that support business growth, like vehicles, equipment, and technology. Again, each option has its advantages and disadvantages – and there’s no one-size-fits-all solution. Consider these five factors to help you decide whether leasing or buying is best for your firm’s next big acquisition.
Buy or lease? It’s a major decision that many small businesses face. As enterprises evolve, so does their need for space. And while you’ve surely heard of the three most important considerations in real estate – location, location, location – it’s also essential to understand the various pros and cons of buying versus leasing commercial property. As with all things in entrepreneurship, there’s no one right answer for everyone – your choice will depend on your company’s specific goals and capacities.
Now more than ever, green business is good business. In a recent survey of young consumers, 73% of respondents said that business innovation would play a key role in solving the urgent environmental challenges we face today.
Applying for a small business loan or line of credit can be a key step in starting a new enterprise or moving it forward.
When you meet with your lender, they’ll request documents and ask questions to get to know you, your business, and your goals. Being well-prepared for this meeting can help you demonstrate that you’re a creditworthy client.
Managing payroll operations can be a hassle for small businesses. While many business operators prefer to handle payroll internally, many others choose to outsource it to professional services. Outsourcing is often the right option for small businesses and startups that need to ensure efficiency and compliance, as well as growing businesses that are bringing on more staff and need to scale their current payroll process.
What’s the best payroll schedule for your small business? You have a few different options, and there are several important factors to consider, including regulations, expenses, and the needs and preferences of your employees.
If you operate a small business, having a fast and easy way to process your payables and receivables is critical. Increasingly, organizations of all sizes are relying on ACH payments as a more efficient alternative to paper checks sent by mail.
If you’re looking for a safe, convenient place to store your small business’s cash reserves, a money market account (MMA) may be right for you.
An MMA is a type of deposit account found at banks and credit unions that gives you immediate access to your money when you need it, typically pays higher rates than a checking or savings account, and is federally insured. Here’s why it’s a great way to keep your cash reserves growing, and what small businesses should know before opening an account.
If you’re starting a small business, choosing which accounting method to use is a major decision.
The two main methods of recording transactions – cash basis and accrual basis – can have different impacts on your bookkeeping process, your tax strategy, and even your ability to secure financing and investments. There are pros and cons to each of these accounting methods, depending on your business needs and goals. Here’s what you need to know:
Having enough cash in reserve is crucial for businesses of all sizes.
Most financial experts say that a small business should keep enough cash on hand to cover three to six months of overhead. But sometimes you may find that you have more than that sitting in your account.
As a small business owner, you might be looking for a more convenient and flexible way to pay for everyday expenses. A business line of credit is one option, but it isn’t right for every business or for the smaller day-to-day purchases that you or your staff may need to make. In many cases, a business credit card could be the smart choice.
Small business owners often overlook the importance of tracking their cash balance or make mistakes while doing it. The truth is, although preparing or reviewing a cash flow statement is another task in your already busy schedule, it’s crucial for helping your company prepare for what’s to come – both the good and the bad. Here are four benefits of using a cash flow statement to track your company’s performance.
It may feel like a chore but creating a thorough and effective budget is one of the best ways to support your business’s growth. It helps you see the bigger picture and allows you to find the best ways to allocate resources and boost profits. Budgeting can help you understand and plan for many of the factors that affect your business. Follow these 10 budgeting best practices to make sure you’re on the right track.
What conditions will affect your revenue and cash flow? How should you allocate your resources? Which goals should take priority? These are just a few of the questions business owners face when planning for the future. Fluctuations in the economy, your industry, and your local market can make it difficult to predict your performance. But knowing the fundamentals of business forecasting can help you see the bigger picture, set realistic expectations, and make better decisions as you move forward. Before you can start forecasting, you need to understand how it works.
Managing cash flow is crucial for the success of your business. A strong and stable cash flow is essential to sustainable growth. The key to having stable cash flow lies in conducting cash flow analysis at least once every quarter and more often if you’ve experienced cash flow problems in the past. To perform that analysis, you’ll need to take a detailed look at your cash flow statement.
No matter if you are bootstrapping your new business or investors are backing your enterprise, establishing a strong business credit profile is an important way to grow your company. It separates your personal credit rating from your business’s credit rating and establishes your business as a responsible, independent entity.
Working capital is the key to growing your business. It’s the fuel that allows you to expand into a new market, launch a new product or service, purchase equipment, hire more staff, and enlarge your facility. A business loan or line of credit can provide the necessary expansion financing to reach those goals.
When you are ready to scale your business and make a positive impact on your bottom line, you can do so in a number of ways. You can make leaseholder improvements, purchase more real estate, invest in more equipment, or increase working capital to take advantage of new opportunities.
As a business owner, keeping your enterprise healthy and growing is a top goal. Business liquidity and cash flow management make that possible. A positive cash flow means you have more money coming in than going out. Those cash funds are your liquidity.
When you need business funding, lenders will evaluate your creditworthiness based on six key attributes. Doing so gives them insight into how much risk they are likely to take if they give you a loan and helps them determine just how much money they will lend you.