Business Startup – 3 Critical Business Financing Mistakes To Avoid

If you were to start committing any of the following 3 business financing mistakes too often, you would greatly reduce your chances of long-term business success. And to be a success in business you have to think long-term. Track record and reputation in business is earned over time.  A good business track-record is largely judged on financial success and financial success in business is assessed largely through the examination of business accounts. Good business accounts demonstrate to banks, financiers, colleagues etc., that you are a bankable business person and will lead them to put their faith and money into you and your business ventures.

By not committing any of the following 3 business finance mistakes you will, at the very least, have good financial indicators and be able to respond to the businesses financial position in time. The key here is to understand both the causes and significance of each.

Business Financing Mistake # 1 – No Monthly Bookkeeping

Regardless of the size of your business, inaccurate record keeping creates all sorts of issues relating to cash flow, planning, and business decision making. In a word, your business is doomed if you are not doing monthly bookkeeping.  Read more...

Posted: 29th May 2010 under Business.
Tags:Avoid, Bookkeeping Services, Business, Business Decision, Business Financing, Business Person, Business Profit, Business Startup, Business Success, Business Track, Business Ventures, Cash Flow Planning, Critical, Critical Business, Financial Indicators, Financial Position, Financial Success, Financing, Good Business, Lack Of Knowledge, Management Accounts, Mistakes, One Mistake, Profit And Loss, Startup, Term Business
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7 Critical Business Financing Mistakes

Avoiding the top 7 business financing mistakes is a key component in business survival.
If you start committing these business financing mistakes too often, you will greatly reduce any chance you have for longer term business success.
The key is to understand the causes and significance of each so that you’re in a position to make better decisions.
>>> Business Financing Mistakes (1) – No Monthly Bookkeeping.
Regardless of the size of your business, inaccurate record keeping creates all sorts of issues relating to cash flow, planning, and business decision making.
While everything has a cost, bookkeeping services are dirt cheap compared to most other costs a business will incur.
And once a bookkeeping process gets established, the cost usually goes down or becomes more cost effective as there is no wasted effort in recording all the business activity.
By itself, this one mistake tends to lead to all the others in one way or another and should be avoided at all costs.
>>> Business Financing Mistakes (2) – No Projected Cash Flow.
No meaningful bookkeeping creates a lack of knowing where you’ve been. No projected cash flow creates a lack of knowing where you’re going.  
Without keeping score, businesses tend to stray further and further away from their targets and wait for a crisis that forces a change in monthly spending habits.
Even if you have a projected cash flow, it needs to be realistic. 
A certain level of conservatism needs to be present, or it will become meaningless in very short order.
>>> Business Financing Mistakes (3) – Inadequate Working Capital
No amount of record keeping will help you if you don’t have enough working capital to properly operate the business.
That’s why its important to accurately create a cash flow forecast before you even start up, acquire, or expand a business.
Too often the working capital component is completely ignored with the primary focus going towards capital asset investments.
When this happens, the cash flow crunch is usually felt quickly as there is insufficient funds to properly manage through the normal sales cycle.
>>> Business Financing Mistakes (4) – Poor Payment Management.
Unless you have meaningful working capital, forecasting, and bookkeeping in place, you’re likely going to have cash management problems. 
The result is the need to stretch out and defer payments that have come due.
This can be the very edge of the slippery slope.
I mean, if you don’t find out what’s causing the cash flow problem in the first place, stretching out payments may only help you dig a deeper hole.
The primary targets are government remittances, trade payables, and credit card payments.  Read more...

Posted: 25th May 2010 under Business.
Tags:All Sorts, Asset Investments, Bookkeeping Services, Business, Business Activity, Business Decision, Business Financing, Business Success, Business Survival, Capital Asset, Capital Component, Cash Flow Forecast, Cash Flow Planning, Conservatism, Critical, Critical Business, Dirt, Financing, Keeping Score, Mistakes, One Mistake, Spending Habits, Term Business, Working Capital
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How to Improve Business Financing and Credit Card Processing

Most businesses which accept credit cards can obtain a business cash advance by using their future credit card processing activity. This strategy is also referred to as credit card financing and credit card receivables factoring. However, there are a number of critical business financing problems to avoid when using this strategy, and a merchant cash advance is not the only source to consider for additional working capital.

Business cash advance and credit card processing management is frequently one of the most overlooked sources of working capital for a business. This article will provide a concise and practical introduction to what a business needs to know about using this business finance strategy and how to obtain a merchant cash advance.

Businesses should not overlook the substantial working capital business loan benefits which will accrue to their business by effectively coordinating merchant cash advance and credit card processing programs. Key results from successfully coordinating these business financing services will include reduced costs and improved cash flow. Perhaps most importantly, a business cash advance based on credit card processing is one of the few viable options for reliably obtaining short-term commercial financing for many service and retail businesses.  Read more...

Posted: 10th March 2010 under Business.
Tags:Advance Programs, Business, Business Cash Advance, Business Finance, Business Financing, Business Loan, Business Owner, Card, Cash Advances, Commercial Financing, Credit, Credit Card Processing, Credit Card Receivables, Critical Business, Financing, Financing Receivables, Financing Services, Improve, Improving Credit, Loan Benefits, Processing, Receivables Factoring, Retail Businesses, Viable Options, Viable Strategy, Working Capital
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