Articles from August 2016



Successful Start-up’s – Staff and Employment

Staff & Em1448369837homepageployment – Share the Love!

Happiness and hard work aren’t mutually exclusive. In fact, you and your team will be more productive if you feel valued and enjoy what you do.

It’s easy to forget your staff when you’re busy with the day to day, but make sure they know how valued they are. They can’t read your mind, you actually have to tell them. You’ll be surprised the difference it makes to moral and productivity. A happy team is a productive team.

Aside from regularly checking in with your team, it’s also a great idea to create Personal Development Plans for each and every team member. Everyone likes to feel they are progressing and to know that progression is being monitored and valued.

Looking after your team is vital for any business – whether you are a service or product business, your staff are the people delivering your vision. Make sure they know how important they are.

Keep the tap running – manging cash flow, profitability and overheads

Keep the tap running.

Not literally, obviously. But you have to keep the cash flowing or you’ll go out of business. And managing cashflow isn’t the same as selling – many businesses who are selling well still come unstuck if the money they need to pay staff and suppliers isn’t in the bank when they need it.

In fact, managing cashflow is by far the most important function in any business, especially startups. Yet it is surprisingly common to see this area neglected or managed haphazardly.

Knowing all of your costs, incomings and outgoings now and in the near future is the best way to make sure your business succeeds. It isn’t exaggerating to suggest the intricacies of money in/money out has made many solid businesses come unstuck – even if they were selling well.

An ICAEW survey revealed that 58% of micro businesses (less than 10 employees) and 35% of small and medium-sized businesses (between 10 and 250 employees) had no debt. How do they can manage without borrowing? The answer is largely because of good cashflow management.

ADVICE FOR MANAGING CASHFLOW

  • Know your current cash situation
  • Regularly prepare and update cash flow forecasts
  • Raise awareness about cash
  • Think about your credit rating
  • If you need finance, research them properly and allow time for the provider to make a decision.

Interview with an accountant!

WHwhere startups go wrongAT ARE SOME COMMON STARTUP MISTAKES YOU SEE PEOPLE MAKING WITH REGARDS TO ACCOUNTING?

The most common startup mistakes with accounting involves putting it to one side “until they have the time”. When they get around to writing up the records they cannot remember what the transaction referred to.

Secondly, they do not open a separate business bank account, which means they mix personal and business transactions. This involves unnecessary work (and increased costs) on the accountant’s part separating business transactions from the personal ones.

Thirdly, they leave it too late to bring the records into their accountant, usually leaving it until the deadline for filing self-assessment returns approaches when the accountant is at their most busy.

Finally, clients who leave bringing the financial records into their accountant often find they do not have enough money to pay the taxes that are due and no time to save for the payment.

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