Better business finance
Good financial management lies at the heart of any business success. As we move into the second half of the year whilst the general economic situation is still uncertain, the opportunities to be building better business finances are ever-present, advises William Buist, Founder, xTEN Club (www.williambuist.com).
“Working with my clients these are the things we have done which make their businesses more resilient and sustainable, particularly given the economic climate. A small amount of work has yielded significant savings in my business and for many of my clients,” says Buist.
“Most businesses leak money through inertia and lack of visibility. We may have a multitude of domain names, software such as apps and premium website plugins and subscriptions that individually are small each time they renew, but collectively add up. So it is important to audit those areas of the business and log them along with their cost, and renewal dates – some you will be able to drop, others are essential for your business.”
“Target investment to ensure that the right areas of the business are developed. With my clients, we have been reviewing strategy and looking at the opportunities by addressing structural issues or developing new products and services,” says Buist.
“For example, I invested in the things that were needed to launch the KickStart programme (https://williambuist.com/the-buiding-better-business-kickstart-starting-in-july-2020/) using working capital. I have improved equipment for zoom meetings, commissioned additional design work and marketing support. If you don’t have working capital currently available then strategic use of some of the current measures (such as the Bounce Back Loan scheme) can give access to capital on preferential terms. That allows you to invest now and plan the things that will advance your business. Well prepared businesses thrive.”
Preserving operational cash gives resilience. “Holding money for known future liabilities in separate accounts, for VAT and other taxes for example, or for other major upcoming expenditure gives certainty and clarity about the real, operational, position of the business,” says Buist. “I have known plenty of businesses that use the VAT they collect from clients in operational cash flow, only to find themselves struggling when the VAT quarterly bill is due. So it is important to ensure that all your known future liabilities are already funded or will be, with operational reserves within your business. Check if you are eligible for any grants through your local council or government, and apply for any that are available to you.”
“Consider how long you need the business to be able to survive in a crisis to be sure that it will be sustainable,” says Buist. “Building better business isn’t just about building better business finances. Yet, without good financial management, it’s just not possible.”
More details about how William can help transform your business into a better business can be found at www.williambuist.com