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Never Run Out of Money! Use Cash Forecasting to Stay Solvent

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StrategyDriven Managing Your Finances Article |Cash Forecasting|Never Run Out of Money! Use Cash Forecasting to Stay SolventWill you have enough to make payroll? It shouldn’t be a mystery.

Don’t run out of money might be the first commandment of any successful small to medium enterprise (SME). You need cash on hand to pay your employees, service your debts, and keep your supplies rolling in on time. In short, you need to cash to keep your business running.

Cash forecasting is the tool you need to make sure you have the cash you need. Instead of looking at accounts payable and receivable (AP and AR), cash forecasting predicts how much actual money you will have on hand to meet your responsibilities. In addition to keeping you solvent from day to day and year to year, cash forecasting has other benefits, too.

Identify Potential Problems Ahead of Time

Cash forecasting can be like a check engine light with premonition for your finances. You can spot trouble spots months ahead of time and plan your way around them. In doing your first-quarter forecast, you might discover that you will have additional expenses in March, or perhaps you will have shipped sales or provided services that aren’t due to be paid until April. Your sales will show up in your AR report, but you probably won’t actually see the cash until April. By predicting this sort of shortfall in March, you can reduce expenditures in February or secure a line of credit with your bank to prevent problems before they happen.

Plan ahead to keep problems from ever occurring.

StrategyDriven Managing Your Finances Article |Cash Forecasting|Never Run Out of Money! Use Cash Forecasting to Stay SolventCreate Strong Relationships with Employees and Suppliers

Your employees depend on you to provide them with a reliable paycheck. They count on that money to meet their household expenses, pay rent or a mortgage, and buy groceries. Your suppliers are in business just like you. They need your payments to meet their own expenses. Neither employees nor suppliers will want to do business with you if they can’t depend on you. Being a reliable partner will establish trust and goodwill that is invaluable in running your business.

Long-Term Planning

You need to make larger expenditures sometimes to keep your business running. Maybe it is time to upgrade all your laptops or invest in that software you need to manage your growth. Be careful. Longer-term forecasts may not be as accurate as short term ones. Nevertheless, your cash forecasting can help you be strategic about when to make more significant investments, how to spread the expense if necessary, and when it might be a good idea to delay a more substantial purchase. Forecasting also helps you put some of your revenue aside for a rainy day, because there will always be rainy days, and expenses or slumps you can’t predict.

Cash forecasting is one of the basics of business. In 2018, CB Investments did an analysis of 101 failed startup businesses. Of those 101, the second most common reason they failed was that they ran out of cash. Cash forecasting is essential for avoiding disaster.

A solid cash forecast is also something your investors will need and something a bank will want to consider before doing business with you. It should be a living, breathing part of your business, updated continually, and consulted often. Cash is king, don’t be caught without it!

I Want to Start My Own Business But How?

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StrategyDriven Starting Your Business Article |Start my own business|I Want to Start My Own Business But How?Modern advancements in technology have made it easier than ever before to start your own company and become an entrepreneur. Millennials are more willing to take a leap of faith and quit their jobs if they don’t feel happy than previous generations. That’s because you can find numerous success stories online of people who chose to follow their dreams and got rich.

It’s important to understand that your end goal doesn’t have to be to become rich. You can start a business simply if you want to lower the stress you experience on a daily basis and pursue your passions. After all, everyone deserves a chance to do something they love. Becoming an entrepreneur is a great wait to gain financial independence and express your creative side. With enough success, you may one day even help shape the industry you are in. If you’re interested in starting your own business but don’t know where to begin, you should follow these useful tips.

Plan Your Finances

When you decide that you’re ready to leave your job and start your own business you’ll likely be faced with a huge challenge. In case you don’t have enough money saved up, you’ll probably have to continue working until you have enough to get your company off the ground. This can be hard to do, especially if you’re fired up about your idea. Nevertheless, it’s important that you do everything right. The last thing you want is to quit your job and end up with a failed business.

To ensure you don’t make any mistakes, you should estimate how much money you would need to get your business up and running. Note that you’ll have some one-time costs like purchasing equipment, getting licenses and permits, as well as doing market research and branding. Along with that, you should also take into account the costs of keeping your company running for at least a year. That includes rent, production, salaries, utilities, and similar expenses.

You should have a rough estimate on how much it would cost you to start your business and keep it running for at least 12 months. This is also vital information for meetings with investors.

In the event that you’re unable to save enough money to start a company by yourself, you’ll still have many different funding options. For instance, you can get a bank or small business administration loan. It’s also worth asking your friends and family whether they’d like to invest in your company. Finally, you should search for angel investors.

Write a Business Plan

Your business plan will serve as sort of a roadmap for your company that contains all of the crucial information about your business. Although you may have a pretty good idea of how you want your organization to look, you won’t have a detailed guide on how to structure, run, and grow it without creating a business plan. This document can guide you through the various stages of starting and running your company.

If this is your first time starting a business, you probably don’t know how to write a solid business plan. Even if you don’t have the technical knowledge to do this properly, know that you can easily find assistance online. Some professional writing services that offer the dissertation writing services can often help you craft a business plan. Your best bet may be to find a professional writer that does the research proposal writing service and ask whether they can help you.

Despite the fact that you’re yet to start your company, this is a good time to think about your exit strategy. Determine how much money you’d want to one day sell your business for. If you’re successful in this, you may be able to make a huge profit.

Decide on a Legal Business Structure

One of the most crucial steps to starting your own business is defining what type of entity it represents. Although you may think of this as just a formality, it actually has a huge impact on your personal life. For instance, if you register for a sole proprietorship, you’ll be accountable for all debts related to the organization. Note that this can have an effect on your personal credit.

The legal business structure of your organization will also determine how you’ll file your taxes. In case you decide to form a partnership with one or more people, you’ll have great tax benefits. However, there’s also the option of creating a limited liability corporation. This is a hybrid business structure that allows you to have both the tax benefits of a partnership and limited liability if something goes wrong. Your plans and business goals should be a determining factor in the legal business structure of your choice.

StrategyDriven Starting Your Business Article |Start my own business|I Want to Start My Own Business But How?Choose a Location

Once you write your business plan, secure funding, and determine the legal business structure of your company, your next step is to set up your space. Think about how important location is for your business. In case it’s not too important, you should search for office space that’s located outside of the city center. Make sure that the location you choose has access to parking and can be reached with public transportation.

Another thing you have to check is how many competitors are close to you. In case there is a lot of competition in your preferred area, it’s best to search for a different location. If you plan on opening a store, you should pick a location in a busy part of your city. Aside from choosing a good location for your shop, it’s crucial to carefully plan your store’s layout. Your goal should be to make an impression on any person that passes by your shop and encourage them to come in.

On the other hand, if you need a physical location only for storage and office space, your primary concern should be to ensure you can provide your employees with good working conditions. Of course, it’s also imperative to pick a location that is easily reachable from every part of the city.

Create a Team

The people you hire to work at your company will be one of the factors that determine whether it will become successful. Before you post ads online or around your city, it’s important to decide which positions to create. Think about what’s most essential for the survival of your business. In most cases, organizations need an accountant, sales representative, product manager, and a marketing expert. You can outsource any tasks that these employees aren’t able to do.

You’ll be required to provide certain benefits to your employees, including:

  • Social security taxes
  • Disability insurance
  • Workers’ compensation
  • Unemployment insurance
  • Leave benefits

Any other benefits you choose to give your employees are optional. Of course, it’s worth noting that good benefits play an important role in employee retention.

Conclusion

The most important step to successfully starting a business is to do extensive planning. Before you even consider leaving your job to become an entrepreneur, make sure you know exactly what you need to do and how much money you need to get your company off the ground.

About the Author

StrategyDriven Expert Contributor | Tiffany HarperTiffany Harper is a training guru who’s been working in the corporate sector for over a decade now. She loves to share her experience through blogs and articles. Due to her love of writing, she also works as the consultant for the essay writer service like custom essay help. Ever since Tiffany earned experience in corporate business, she provided her talents to some of the top essay writing services UK. Please do not hesitate to contact her on twitter.

How To Write a Professional Development Plan

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StrategyDriven Professional Development Article |Professional Development Plan|How To Write a Professional Development PlanIn every work field, development is a crucial part of the job. Whether it’s individual or collective, improving your skills can help you maintain your position or to ascend. Also, you can become more efficient, which makes tasks easier and less time-consuming.

But how can you improve in the most effective way possible? First, you have to create a systematic development plan that helps you focus on every aspect of your job. Then, you can take action and put the plan in motion.

In this article, you’ll learn how to create a step-by-step plan to develop your individual skills or to better the whole team.

What Is A Development Plan?

Before we learn how to develop a plan, let’s define it better.

A development plan is a series of steps to take to improve your performance at work. The result of the said plan should be reaching your career objectives.

Here are some examples of how a well-made development plan can help you:

  • It can aid you to gain a different perspective of your work.
  • It can help you earn a certification.
  • It aids you during a job search.
  • It can make goals more visible so you can actively reach them.

So, when you put together all the elements, you have a clear picture of where and how to start.
You can build your development scheme on digital notes, Microsoft Word, or even on a piece of paper. As long as you keep it updated, detailed, and clear, reaching your goals will be simple.

Consider using as many bullet-point lists as you can and specific keywords that can remind you of the steps at first glance.

Lastly, keep it in a cloud where you can access the document easily, from different devices. Alternatively, if it’s not digital, keep it on the front page of your journal, where you can see it right away.

StrategyDriven Professional Development Article |Professional Development Plan|How To Write a Professional Development PlanSteps To Create A Proper Development Plan

If you wish to create a thorough development plan, you might want to follow a few steps.

1. Evaluate

You may want to find out your skills before you improve them. So, start by thinking about your knowledge, abilities, and specialties. Then, you can focus on improving them. Try to go from more generic and soft competencies to specific ones. Here are some examples:

  • You can say that you’re “technology-savvy” and then elaborate on the apps you can use and the level of expertise for each.
  • You can include “good with communication” and specify the ways you make yourself understood.
  • You can say that you’re “autonomous” and elaborate on how you can manage your work without anybody’s help.
  • You can include “cooperative” and specify the way you work with others on projects.

It’s vital to include all the abilities that define your working methods. Specifically, for a job search, having a list that can describe you as an employee can make a good impression in an interview or a CV.

Don’t forget to include some weaknesses that are pertinent to your position. Maybe you have trouble organizing your paperwork, or you don’t know how to work in groups. If you list the things you can’t do, you can focus on them and improve.

Otherwise, if you work in a team, try to figure out the strengths and weaknesses of the entire group or micro-groups.

For example, suppose you work at a freelance company, like Assignment Help UK, a service or accounting company. Maybe you have trouble synchronizing, and the result is delayed deliveries. Figure out what doesn’t work. Perhaps it’s the lack of communication or poor organization.

2. Set objectives

There’s no development plan without goals. So, try to figure out what you wish to achieve. Here are some examples of objectives:

  • Get promoted;
  • Get a raise;
  • Get a new job opportunity;
  • Work from home.

Make sure that your objectives are well-defined and easy to measure. You want to know precisely the result you wish to achieve through the plan. Moreso, if it’s a quantifiable goal, make sure you can monitor your growth to update your plan or continue it.

Also, your objectives should be reasonable and relevant. Getting a raise, if you’ve only been working for a year at your company, might be a goal to achieve within the next five years, not in six months. So, make sure that there’s a time frame and that your goals are realistic.

If you work in groups, make sure that the objectives you set benefit everyone who’s part of the plan. For example, if you work as a travel writer at Custom Papers, or as an editor, make sure your whole team is aboard. If not, you can create groups with separate objectives.

3. Determine strategies

Now that you know your goals and your resources, you can start to think about how to reach your objectives. Here are some examples of methods:

If you wish to become better at your job to waste less time and earn more, you can take a course. Improving your knowledge through a class or a workshop can make you more productive.
If you want to change your approach, and become more flexible with ideas, consider finding a mentor. You can learn numerous tips from your colleagues or superintendents.
If you wish to work from home, try to show your employee that you can work autonomously and communicate through technology.

Generally speaking, the best strategies to reach your goals involve education and experience. However, if your goals depend on your habits, you can just try to change those.

For example, let’s assume you write blog posts, the assignment help or articles. Maybe you’re having trouble delivering on time because you have a chaotic schedule. So, you can start to write tasks and due dates in a journal.

Still, even in this case, you might want to get educated about self-management through Youtube videos, webinars, or other methods.

If you work in a team, the solution could involve breaking up the large group into pairs. Or the solution could be installing a cloud where people can get work on the same project from different devices.

4. Find the right tools

Once you figure out what you need to do to improve, you can start looking for the tools to do it. The instruments you use are related to your strategies. As mentioned before, if the strategy is educational, then your tools are institutions, webinars, development platforms, mentors, and more.

On the other hand, your instruments can be new software, new arrangements in the office, etc.
List all of your options and see which ones are more effective.

5. Have a step-by-step approach

Remember to keep breaking down your process into smaller tasks. For example, if you need to attend classes, your guide should look like this:

  1. Go to class. First, try to be punctual and attend classes.
  2. Study. Secondly, you can start to study for your certification and do your homework.
  3. Become autonomous. Lastly, try to do extra work or to turn theory into practice.

Once you complete those little tasks, you can move on with your plan.

Conclusion

If you wish to improve your aptitudes and reach your career objectives, try developing a plan with the following steps:

  1. Evaluate.
  2. Set objectives.
  3. Determine strategies.
  4. Find the right tools.
  5. Have a step-by-step approach.

About the Author

StrategyDriven Expert Contributor | Tiffany HarperTiffany Harper is a freelance writer who helps as a subject matter expert with some college paper writing service and top essay writing service. She is very fortunate to work from home like a consultant with blogs and social media posts of bestcustomessay.org. When she’s taking a break, Tiffany loves to practice Yoga in a local park or meeting new people. Please do not hesitate to contact her on twitter.

How Can I Start My Own Business?

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StrategyDriven Starting Your Business Article |Start my own business|How Can I Start My Own Business?While many ideas for businesses never fully come to fruition, some entrepreneurs dream big enough to actually put pencil to paper. Though starting a business amidst the current pandemic might feel impossible, over 69% of American entrepreneurs begin their businesses right from the comfort of their own homes. If you’re wondering how to go about making your own entrepreneurial dreams a reality, consider the steps below on how you can start your own business even during these uncertain times.

Have a Concrete Idea

It’s no secret that many business ideas seem good in theory but become much more complex in practice. Whether your idea for your small business is one you have fleshed out on your own, or one you’ve developed with the help of family and friends, make sure it’s a solid one. A good rule of thumb is to start simple. For example, should your dream be to develop an entire clothing line, it’s probably in your best interest to begin with one category of garment at a time, such as blouses and shirts. Focussing your creative energy on one portion of your idea will likely save you money at the beginning of your business venture, and it will also keep you from feeling overwhelmed as you work to get your business off the ground.

Conduct the Proper Research

The nature of the business world is a competitive one and thus requires the right amount of research if you plan on entering it. Conducting market research along with taking the time to do a full competitive analysis as it pertains to your business is vital to the success of your company. As you do your research, use the questions below as your guide:

  • Is there a demand for the product or service your company offers?
  • Who is your target consumer?
  • What is the population size of the consumers you plan to market to?
  • Does your target audience live in your area or are they elsewhere?
  • What do you plan on charging for your product or service?
  • Who else already offers your product/service and what can you do to set yourself apart?

Though your research isn’t required to be limited to the questions above, answering them will give you a starting point for where you stand amongst your competitors and what you’ll have to do to stand out as a business. For more information on market research and competitive analysis, utilize this guide from the SBA.

Develop a Clear Business Plan

It’s important to note that having a business idea is vastly different from having a business plan. There are numerous online resources available that outline the proper steps for developing such a plan. Block out some time in the coming weeks to sit down and write. A simple Google search on how to write a business plan should suffice for the information you’ll need to get things started. If you plan on presenting your finished plan to investors, be sure to keep it concise and to know your audience. However, if you’re composing your plan simply to keep yourself on track, make sure you’re using the future as your guide. Have an emergency fund should things go south, and look for ways your business can adapt should the pandemic continue for longer than expected. Business plans are essential to the overall success of your company and are a perfect guide for you to stay on track and organized.

Know Your Funding Options

Once you have a plan in place for your company and you’ve done the proper research, the final piece to the puzzle is locking down your funding. While there are plenty of options to choose from, make sure you consider non-traditional funding methods such as:

Crowdfunding: As the name suggests, this funding alternative is all about who you know. If you’re a big networker, this may be a great option for you aside from a regular business loan. Take to your social media outlets or even create a GoFundMe page and get the word out. Though those who fund your business are not guaranteed a return, you can always offer them perks when you do get your business off the ground.

Home Equity Loans: While most individuals use home equity loans for affording a college education or for funding a home renovation, they can also be used to cover business expenses. The appeal of a home equity loan comes from it’s low interest rates, making them a stable option long term. If you are unfamiliar with how these loans work, use this home equity loan resource as your guide should you be interested in using one to fund your business.

Microfinancing: This option of funding was developed specifically for entrepreneurs who may not even have the option to go traditional with their funding. Microfinance organizations provide small loans in order to help entrepreneurs get their business off the ground in the beginning. Microfinancing is an option for those who want to achieve their dreams but have no collateral to do so. For more information on microfinancing, consider this article on: what is microfinance?

While traditional business loans are still an option, the unique choices listed above may be more viable funding alternatives during these uncertain times.

As you put the steps above into action, remember to stay focussed on your goals. Starting a business can be overwhelming and discouraging at times, so be sure to maintain a strict budget and use your business plan as your guide when you feel lost. With the right research, a clear plan, and the proper funding, any business dream can be made possible.

5 Tips to Help Streamline Your Business

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StrategyDriven, Business Management, Business Plan, Bussiness Software, cIt’s important for any business to ensure it’s making the most of its resources. Often, you don’t need to add anything to your company in order to improve its performance; you’ve just got to make better use of what you’ve already got, and this is where streamlining comes in.

Here are five tips to help you streamline your business.

Planning

There’s got to be a plan, and there have to be goals that everyone is aware of. If you don’t have these two things, then it’s difficult to know what direction your business is going in. The better your planning is, and the more people understand their individual goals, the more efficiently your business is likely to run.
Make sure you’re taking the time to invest in your business planning, and be open with your communication in conveying goals.

Finances

It’s much easier to do that planning and create realistic goals if you’re on top of your finances. You should know exactly where you are with your finances, and the best way to do this is to get the best bookkeeping services in Boston.

Not understanding how your finances stand is a perilous situation in business, but the more you know, the more you can streamline how you use that money.

Finances are clearly a vital aspect of any business, but too often, people don’t pay enough attention to them.

Hiring

It’s extremely difficult for your business to run efficiently if you’re not hiring the right people. A company can be a complex, interconnected entity, and if there are just a few pieces that aren’t working well, then it can cause problems for the whole system.

This means you’ve got to put care and attention into every hire and really make sure you’re focussing on the process of how your recruit.

When you need to make a quick hire, this can be very difficult, but so often it’s worth taking the extra time and making sure you get the right person.

Software

Even if you’ve got amazing employees throughout your business, they can’t do their job effectively if they don’t have the right tools.

Any business today needs to make sure they’ve got the right software. It can be expensive to invest in new software, but it can quickly earn that money back through streamlining processes. If you think about all the small inefficiencies you have across your business, then they can add up to a huge amount, and the right software can help in this area.

Culture

Culture plays a huge part in how well a business operates.

If there’s a negative culture where people end up doing the bare minimum, then it’s going to have a big impact. However, when you create the right culture where people can thrive, then you will find everything becomes much more streamlined.

Business culture isn’t something you can change overnight, but you can take active steps to create the kind of culture you would like. A positive atmosphere can make the world of difference, so it’s well worth investing in.