Tag: expenses

Small Business Transportation

Posted by WFG – August 11, 2011

When times are tough, small companies look for cost saving techniques. And just one of the many ways to save is through your small business transportation and shipping. Remember, you don’t want to cut your budget too much, as the service you receive will be poor and has the potential to lose you customers. By following some simple steps you have the chance to cut costs, and maintain a good service.

Comparing Rates

Despite this sounding obvious, comparing small business shipping rates is a task that only a limited amount of companies complete. Most managers believe that companies offer largely the same prices and that one company is no different to the other. Using this same method of thought means that you’ll be using the same company for every delivery, which is a common mistake. Every delivery is a different size, and heads to a different location, meaning that rates will vary. Use websites such as Shipping Sidekick to compare rates and keep a check on how much you save yourself. Read the rest of this article

What is Considered a Small Business?

Posted by WFG – August 11, 2011

As you start up your new business it’s important to get a grasp on your status. At a certain size you can expect to receive benefits and the opportunity to take advantage of these is imperative. But if you’ve been growing, what is considered a small business?

To begin with, the correct method for declaring if you’re a small business depends on a number of factors. Firstly the rules may change depending on which country you’re in. Though we will be looking into the USA standards, and many will follow a similar pattern. You’ll also need to know what industry you specialize in. Read the rest of this article

Is the Small Business Optimism Index Really That Bad?

Posted by WFG – August 10, 2011

Small business optimism has dropped for the fifth straight month. And this time it’s fallen more than the previous three. But with the way things are, what did we expect, especially when almost everyone sees the future as a pit of doom and gloom.

To begin with, I’m not the most optimistic person in the world. In fact, I will often see things in a pessimistic light. But when I look to the recent news of small business optimism dropping, I don’t see problems ahead, I see companies doing what they’re supposed to do. And that shows us that small businesses will have more chance of survival.

When looking at the components, the small business owner is asked a number of questions. Do they plan to increase employment? Do they expect the economy to improve? And the chances are they will say no. The current economic climate is an unstable one, with debts hitting new highs and riots spreading like a rash.

But with the Index released, all of a sudden a wide number of media companies jump on the stats and reveal that small business owners are struggling and are close to extinction. When in reality, they are tightening their budgets and limiting their options so they survive. If they were to make the index look good in the next month, the chances are that most of the companies would make huge losses and create debt. Where is the sense in that?

The financial market might be temperamental at the moment. But that doesn’t mean everything is going down the pan. The Optimism Index even states that ‘the employment story is not a positive one’ because only 10 percent will plan to increase employment. Most will be waiting this period of uncertainty out until they feel a better time is ahead.

There are two types of small company that will survive this spell of ambiguity. Those with good managers, who planned ahead, cut costs and take a pessimistic approach for the long term future of the business. Or the companies that have a product/service that would sell even if an apocalypse struck our streets. Times might be bad, but the good small businesses will always survive, no matter what the Optimism Index suggests.

Small Business Credit Cards and Financing

Posted by WFG – July 5, 2011

When we see the huge corporations, we sometimes forget that they were once a start-up company. Most struggled to get their feet off the ground, and without financing they may never have reached the size they are today. But while many banks refuse financing, why not use small business credit cards?

To begin with, let’s start with the advantages. You can draw out the money you need, when you need it. This stops the massive loans that some small companies take out and the interest you pay. It gives you a set amount that can be spent and might help with keeping control of your financing. You also don’t have any investor, which means you can choose what you spend your money on. To use a credit card for your startup business there are some valuable steps to keep to.

  • Avoiding the blend of company and personal finances. By using small business credit cards, and using it only for your company, it shows you are serious.
  • Using a small business credit card helps with tracking finances and expenditure.
  • Using credit cards professionally will help build your company credit rating. If you need extra funding in the future, a good credit rating may just give you the edge.
  • If you use your credit card well, then there is always the option of rewards. These might not be much, but it may help with flight tickets and business expenses.
  • With many of the business credit cards, you have the option of providing cards for your staff too. Just be sure to monitor spending on separate statements.

The problem is that some people don’t have control over what they spend and make credit card mistakes. They buy things they don’t need, max out the card and then get another one. When starting a small business with a credit card, you’re on your own. With too much debt you may eventually get a bad credit score and put off future investing in your company.

Without the option of future investing you will put your company under pressure. This investment funding will be needed as your business grows and could be the helping hand you need to make the step up from a startup company.

Another problem with using a credit card is the inability to spot fraud. Scams are becoming complex with the introduction of new technology and even the most basic are hard to notice. Be sure to keep an eye on your company credit cards and be aware of fraudulent activity.

If you are good with your money, and pay back debts, then your credit score won’t be dramatically damaged. With credit cards you must be focused on which ones are best for you and company, and keep a control on spending.

For more information on small businesses and start-up companies contact the Winflow Financial Group on 1.800.956.6897.

Small Business Accounting Tips

Posted by Winflow – July 4, 2011

Most small business owners dread their accounting duties. It can take quite awhile to get your receipts in order and calculate your expenses and profits. Most business owners don’t want to spend too much time on accounting duties when there are so many other things to do in a small business.

Are you a small business owner interested in paying less during tax season? If so, contact the Winflow Financial Group. Our consultants will utilize your company’s accounting processes and make them as tax efficient as possible.

Small business accounting tips include:

  • Organize your expenses into categories. For example, put all travel expenses into one folder. This will make it easier to calculate total expenses at the end of the month or quarter.
  • Don’t throw your receipts into a jar and forget about them. The longer you put off recording your expenses, the more work you will have to do.
  • When recording expenses, write what the expense was for and why. It may hard to remember why you had to spend that gas money in a few months time.
  • Keep separate bank accounts. Don’t mix your business finances with your personal ones. Separate accounts makes it easier for your tell how your business is doing.

 

 

Staying within Budget

Posted by Winflow – June 20, 2011

Staying within your pre-determined business budget isn’t always easy. There are many expenses and problems that pop up along the way. Some ways to work around these problems and maintain your budget include:

  • Be flexible. Projected revenues are just projections and you may find your company does better or worse than you though. Adjust for revenue as you go, cutting back on expenses or getting new equipments when the need arises.
  • Know your projections aren’t always going to be accurate. A projection is really just a guess of how much something will cost. If you find your initial projections were inaccurate adjust them according to your earned revenue.
  • It can take time to adjust to a budget. You’re not going to get your budget perfect every month, especially at the beginning. Just know with time that you will learn how to properly budget for your business.
  • Keep as close eye on your cash flow. As the month progresses, check that your revenue matches your expenses. If it doesn’t, adjust accordingly.
  • Set aside money whenever you can. It is best to operate your business with a financial cushion behind it in cases unexpected expenses appear.

If you need assistance determining your small business budget, contact the Winflow Financial Group.

Downsizing your Small Business

Posted by Winflow – June 17, 2011

Downsizing, sometimes known as “smartsizing” by optimists, involves cutting down your budget in times of financial need. Your business should really only downsize if your company is in financial trouble. Downsizing can help a business survive during difficult economic circumstances. If your considering downsizing your business, follow these tips:

  • Analyze your expenses. Things that may have seemed like necessary business expenses may not anymore. You should cut expenses until your business can break even.
  • No way to avoid it- downsize often means job loss for your employees. Before letting employees know, determine whether you will just do layoffs or if it will be a permanent arrangement.
  • Increase procedural efficiency. Analyze the business procedures your company partakes in daily and determine how to make them more efficient and cost-effective.
  • Downsize yourself. If you can afford it, cut your salary back until your business is on more stable ground.
  • Make sure you have a solid business plan in place. If your company starts to rapidly grow you will need a plan to cover costs of the growth if you don’t want to have to downsize in the future.

If you need assistance securing funding for your small business, contact the Winflow Financial Group.

Improving your Cash Flow

Posted by Winflow – June 13, 2011

Creating a steady cash flow is important to any small business, especially a business that finds themselves working with a negative cash flow. Cash flow is the money you have leftover after your expenses are paid. Cash flow is useful for growing and expanding your small business. To increase your cash flow, consider the following:

  • Pay attention to financial statements and track where your cash goes each month. This will help you analyze if there are any ways to cut back on expenses and determine the health of your business.
  • Research potential customers ahead of time. Do credit checks on prospective clients to ensure they will pay you on time. The longer you let another business owe you money, the longer you are actually funding their business.
  • If you have several loans, consolidate them. This involves combining your small loans into one big loan. You are likely to save money on interest payments.
  • Optimize your stock. If you have a surplus of inventory lying around, get rid of it. It will just cost you more money to store it. Be careful not to overstock when ordering inventory.

If you would like more advice on improving your company’s cash flow, contact the Winflow Financial Group. Our trained consultants can be reached at 1.800.956.6897.

Developing a Budget and Sales Forecast for your Small Business

Posted by Winflow – June 13, 2011

Running a business without a budget is like shooting in the dark. Budgets and sales forecasts are imperative to small businesses because they help you plan ahead, control your finances, make adjustments to your spending and they can help you evaluate your company’s financial strengths and weaknesses. To make a budget for your small business start by:

  • Forecasting your revenues and expenses. Don’t be afraid to be exaggerate your expenses and low-ball your revenue. This will give you some financial breathing room if you run into unexpected costs.
  • Prepare data about salaries, production costs, sales forecasts and loans to be paid back. Having the numbers in front of you will make it easier to plan a budget.
  • Use last year’s numbers as a guide of what to expect for this year.
  • Be flexible with your budget. It is necessary to realize that certain expenses may be out of your control and cause you to go over-budget. This isn’t a big deal. It happens all the time.
  • Check your budget every month to ensure you are working within your financial restraints.

To learn more about creating a budget for your small business, visit this Info Entrepreneurs page.

If you need assistance developing a personalized budget for your business, contact the Winflow Financial Group at 1.800.956.6897.

Canadian Financing Sources for Innovating your Small Business

Posted by Winflow – June 13, 2011

The government of Canada offers a number of programs to fund everything from research and development (R&D) to commercialization. R&D is an important aspect in small business growth. Often times, small business owners are unable to grow their business because of a lack of sufficient funding. If you are currently seeking funding to innovate your small business, determine if you qualify for the following programs:

  • Industrial R&D Fellowships program. This program is for R&D initiatives in the engineering or natural sciences field. You could receive assistance hiring  PHD grad for two years.
  • Strategic Aerospace and Defence Initiative. If your small business is in the defence, aerospace or space and secuirty industry to could receive a loan to cover 30 percent of costs associated with your R&D project.
  • Ontario Innovation Tax Credit. If your small business is located in Ontario, you can claim a 10 percent tax credit for R&D.
  • Going Global Innovation. If your small business is ready to expand to a foreign market, you could receive 75 percent of travel of your travel expenses.

For a complete list of funding available for R&D projects, visit this Canada Business page.

If you need help finding funding for your small business expenses, contact the Winflow Finacn