What is your exit strategy? What plans are currently in place? It takes two … We’ve often heard the phrase “businesses don’t plan to fail, they just fail to plan” but this task involves future planning and because it’s so difficult, many business owners just don’t bother. If it’s a 5 year plan you’re looking [...]
Don’t plough all your profits back into the business …………..
Don’t plough all your profits back into the business ………….. that plan is so wrong, and for so many different reasons! Here are just 2. The current economic climate clearly shows why this plan is very risky. Who knows what’s going to happen next? Whether you are a garage owner, print specialist, IT supplier or [...]
What is your exit strategy?
What plans are currently in place? We’ve often heard the phrase “businesses don’t plan to fail, they just fail to plan” but the the task of developing a suitable exit strategy requires a lot of future planning, and is often seen to be so difficult, that it is rarely undertaken. If it’s a 5 year [...]
Understanding Terminology – Fixed and Variable Costs
Every decision that an organisation makes will have some impact on costing issues and eventually the bottom line. To make smart decisions it is vital to understand the relationship between fixed and variable costs and then be able to apply these concepts correctly to either Absorption or Marginal Costing techniques. Fixed Cost – a cost [...]
12 Key Steps to Budgetary Control Success
Businesses don’t plan to fail – they often just fail to plan properly – if at all. The skill is knowing where to start and how to do it. Unfortunately – the devil is in the detail! For most companies, establishing a formal budgeting process within the organisation is key to its continued operations. It’s [...]
Management Accounting compared with Financial Accounting
MANAGEMENT ACCOUNTING (CIMA) vs. FINANCIAL ACCOUNTING (CA) It is important that management accounting is clearly distinguished from financial accounting. The first piece of great news is that management accounts are not audited and not even required by law – that means you can ‘DIY’ if you want to and there are no large accounting bills [...]
The current banking crisis explained (humour)
Young Stelios bought a donkey from a farmer for €100. The farmer agreed to deliver the donkey the next day. The next day he drove up and said, ‘Sorry son, but I have some bad news. The donkey’s died.’ Stelios replied, ‘Well then just give me my money back.’ The farmer said, ‘Can’t do that. [...]
Explaining a Balance Sheet
Being able to explain balance sheets (convincingly), using easy to understand language, is an important starting point to be able to then go on to develop a deeper understanding at higher levels. Try commiting these definitions to memory – use them as a starting point. At my coaching sessions these simple definitions are developed and [...]
Lousy Interest Rates!
Dec 2011 If you had £30,000 to invest over a 2 year fixed period and you selected 2 of the best rates e.g. 4% (Investec) or 3.85% (Halifax) Between these two rates – neither spectacular, the additional interest generated is £93.53 (over 2 years). Confirm this by visiting the Useful Links page and select the [...]
12 Tips for Raising Finance
There are many reasons for raising finance for your business – to pay off a loan or to undergo a major expansion programme. Here is a suggest list of options to consider. Internal Retained profit Issue new shares to existing shareholder Sell off fixed assets not generating revenues External Issue shares to new shareholders Commercial [...]
