Finance – Page 11 – Business Plus Baby

April 5, 2012February 3, 2014

Turning pennies into pounds: How to save your business and family money

If you’ve got enough guts to juggle a baby and a business at the same time, you already possess enough savvy to know that running a business from home doesn’t have to be expensive. Whether you want to save for your family’s future or increase your business’s bottom line, you can turn pennies into pounds with these energy-saving and cost-saving measures for your home business.

Electricity prices are a main concern for most entrepreneurs whether they work from home or in an office, so it is natural to start your cost-saving quest here. To save electricity, set up your office with energy-efficient equipment, such as a three-in-one fax machine, printer, and copier. Better yet, invest in computer software that does away with the need for paper copies and mailing. You can get a comprehensive email programme that also functions as an instant messenger. And to cut down on the need to commute (which also uses costly petrol) you can get video conferencing software like Skype to keep you in contact with business partners.

If you’re setting up a business for the first time or you are revamping your overhead costs budget, it is also worth the time and effort to compare energy prices to see if you’re really getting best deal on your energy. Switching tariffs is becoming a common practice amongst homeowners and business owners who find a better rate elsewhere. Just be cautious with companies that claim that you’ll be better off with their services; sometimes they quote the highest cost for electricity in the industry, which may not apply to your situation.

You should also make sure that you have proper insulation, which is especially important during the winter. Cracks around doors and windows can let heated air out and cold air in, defeating the purpose of you turning on the heater. But in addition to a little caulk and weather stripping, you may also want to make a project out of insulating your attic or loft; nearly 15 per cent of your heat escapes upward, so reinforcing insulation here could make a big difference in your bill.

The key to saving on energy is looking in all the small places that cost you just pennies individually. For example, you could also benefit from conserving water, unplugging electronics (all over the house), and using a programmable thermostat for heating and cooling. If you keep a diligent eye on your home and its work space, you’ll be better equipped to take over the world with your baby in tow.

March 27, 2012March 27, 2012

Why it’s essential to compare car insurance quotes

Bargain hunting is the only way to get a competitive price on your car insurance, and to do that you’ll need to compare quotes. Comparison websites are great for that. But what should you look for? Here’s a guide to the factors worth evaluating.

Price Continue reading “Why it’s essential to compare car insurance quotes”

March 18, 2012June 13, 2016

What’s the value of a mum? (Infographic)

According to this infographic from Money Supermarket, it’s £30,032.

Happy Mothers’ Day!

March 14, 2012March 20, 2015

Women make money: How YOU can take control

Self-employed mothers have come a long way since the old days when earning pin money was their only option.

Some women are earning more than their partners and most are concerned about taking care of themselves financially after they’ve retired. With many of us expected to live to 90 it could be a long retirement, yet after the credit crunch we no longer have faith our pensions will be there when we need them.

Some women take full responsibility for supporting their families because they are single parents or their partner isn’t able to work.

Continue reading “Women make money: How YOU can take control”

March 7, 2012March 7, 2012

Cash flow management: Why cash is king

Today I’m delighted to introduce new Business Plus Baby guest blogger Jonathan Freeman, accountant and owner of Freeman and Co. Chartered Certified Accountants. Jonathan is based in Leicestershire and specialises in supporting small and medium-sized businesses. Over to you, Jonathan…

Whether you are about to start up a new business or have owned your business for several years, managing your cash flow is now more important than ever, especially during these difficult times.

You would be amazed by the number of start up businesses that simply jump in to a new venture without even considering what their likely costs are going to be and what they need to sell in order to just break even. Preparing cash flow and budget forecasts is essential to help plan ahead and see whether there are likely to be any shortfalls. Cash flow forecasts measure the difference between cash inflows e.g. receipts from customers and cash outflows e.g. payments to suppliers and staff.

Most businesses need both short term and long term funding, so let’s take a look at each type and see how this works in practice.

Short term funding

This type of funding for the start up business is usually made up of small loans provided by the owner. For the established business short term funding is usually provided by customers once sales invoices have been paid within the payment terms. Another form of short term funding can be bank overdrafts. This funding is often referred to as working capital.

Long term funding

This type of funding for both the start up and established business is often in the form of a bank loan or long term loan provided by the business owner and is used to fund long term financing such as the purchase of plant and machinery.

It is therefore important to ensure that the funding matches the type of expenditure. For example, it would not normally be a good idea to finance expensive plant and machinery using an overdraft facility as this would work out quite expensive and also not provide the necessary security which a fixed bank loan could.

Cash flow management can be difficult to manage especially where customers are taking longer and longer to pay. Here are a few tips to help smooth this process along:

Always carry out credit checks against all new customers where possible;
Agree and formalise payment terms;
Issue sales invoices promptly;
Chase debts promptly and firmly;
Keep stock levels down;
Manage payments to suppliers carefully;
Provide customers with your BACS details;
Formalise your debt collection procedure and ensure consistency using standard letters and reminders;
Agree when to stop supplying customers who have overdue invoices outstanding.

The key to managing cash shortfalls is to become aware of the problem as early and as accurately as possible and your accountant should be able to help you with this. Banks are often wary of borrowers who have to have money ‘today’. They’d much prefer lending to you before you need it, preferably months before. If banks are unwilling to lend to you, contact your suppliers to see if they can extend their payment terms to help in the short term.

You can read more about Jonathan by visiting his website www.freemanco.net