Budgeting Business Finances in an Economic Crisis

In these tough financial times, more and more businesses fall into financial despair and need extra funding in this bad economy. Many of these businesses could change their financial position somewhat by focusing on their budget and cutting it THE BONE.

The first step to take, which is the easiest and fastest, is to cut out that unnecessary spending.

At first glance, you might think that your budget is very tight and there is nothing in there to cut. As a business owner and financial consultant for over 20 years, I have found that this is seldom the case. There are almost always ways to cut costs and save money.

A big mistake most businesses make is not taking the time to prepare a budget when times are good. Typically business owners tend to take an interest into budgeting money once they’re in financial trouble. Their debts have piled up, their income doesn’t seem to cover their bills and habits, and they are stressed out as a result. Does this sound familiar? If so, you probably need to learn the usual budgeting techniques.    Read more...

Posted: 2nd September 2010 under Business.
Tags:Budgeting, Budgeting Money, Business, Business Finances, Business Owner, Business Owners, Cornerstones, Crisis, Despair, Economic, Economic Crisis, Finances, Financial Consultant, Financial Future, financial planning, Financial Position, Financial Situation, Financial Times, Financial Trouble, First Glance, Fulfilling Life, Insurance Savings, Money Management, Taking The Time, Workable Plan
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Obtaining Business Financing during an Economic Crisis

Financing is one of the most difficult tasks for any business, especially during a financial crisis.

Obviously cash flow is the life’s blood of any business, at any time, good or bad. The important thing to remember is that because of this crisis all businesses are in the same position you are, as far as cash flow is concerned which directly affects the ability for any company to obtain financing.

So how do we proceed?

Mind Set

The first thing is for you to get into a different “Mind Set” by this I mean that you have to understand that you are not the only individual in need of funding. You have to realize that lending institutions are being inundated with cash starved businesses that ALL need funding now, or they will be out of business. When you understand and accept the fact that you are just a number to the underwriters, you will begin to get yourself into the right mind set and will be better poised to present your case.

Preparation of the “Financial Crisis Funding Request”

Basic and expected financial documents and reports that typically acompany a business loan application  Read more...

Posted: 30th August 2010 under Business.
Tags:Best Possible Outcome, Business, Business Financing, Business Loan, Business Plan Templates, Business Templates, Case Preparation, Cash Flow, Crisis, During, Economic, Economic Crisis, Economic Times, Financial Crisis, Financial Documents, Financial Statement, Financing, Lending Institutions, Loan Application, Obtaining, Payables, Receivables, Underwriters
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Trends: Will a College Education Cost More in 2009?

A recent Dec. 3, 2008 New York Times article focused on the affordability, or not, of college in the U.S. The article was based on a biennial National Center for Public Policy and Higher Education report indicating that college tuition and fees increased 439 percent from 1982 to 2007.

Average costs for a college educaiton these days, including room and board, miscellaneous expenses such as books and supplies and credits for a degree and no repeat courses, are: – Private College: $ 33,301 – Public College: $ 16,357 – Out of State Public College: $ 26,304 – Inflation rates for college costs is usually higher than that of the cost of living. The rate presently averages between 5 and 8 percent.

However,there are some universities offering students an advantage, including the University of Pennsylvania, where families with incomes less than $40,000 per year will pay no tuition, and no room or board. Penn accepts students based solely on academic and other strengths, not on families’ ability to pay. And despite the current economic crisis, they remain steadfast in this commitment to educate the best and brightest young people, regardless of economic background.  Read more...

Posted: 4th April 2010 under Family.
Tags:2009, Achool, Borrowing Money, College, College Board, College Costs, College Education, College Tuition, Cost, Economic Background, Economic Crisis, Education, Education Report, Families With Incomes, Inflation Rates, Last Ten Years, Median Family Income, More, National Center For Public Policy And Higher Education, New York Times, Private College, Report Also Said That, Same Time Period, Trends, University Of Pennsylvania, York Times Article
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Surviving in This Economic Hardship Should Start From the Family Unit

Despite it being a vital aspect of life, some of us find it harsh when told to create a culture of saving for the future. And this has brought me to say that during those formative years it would be of utmost importance for parents to instill knowledge on ways of saving. I thank my parents for where I am now financially; I can still hear my mother’s voice not to be wasteful. Even when it came to serving food, she insisted for one to serve what you know you can finish.

In these tough economic times and the constant fluctuating inflation globally it would suicidal if parents don’t regard teaching their children on how to save even if it just means getting them a piggy bank. Maybe you would call my father old school and a disciplinarian but I thank him for the efforts he took to make sure his children adopted a habit of saving. I came to realize that nothing in life is got easy or overnight but one has to work on achieving some sort to success. I have to believe in small beginnings and building on them not forgetting to follow up until you finish. It’s from my parents’ effort I learnt the saving culture while still in my formative years, as my father found it a character flaw not planning for the future.  Read more...

Posted: 14th November 2009 under Family.
Tags:Business Venture, Challenges, Character Flaw, Disciplinarian, Economic, Economic Crisis, Economic Hardship, Economic Hardships, Economic Times, Family, Formative Years, From, Governments, Habit, Hardship, Inflation, Old School, Parents, Piggy Bank, Regard, Saving For The Future, Should, Small Beginnings, Start, Surviving, This, Unit, Utmost Importance, Vital Aspect
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