Four simple things you can do to ensure your business stays afloat and your finances don't go down the drain
Stuck for a financial boost?
Here's the difficulty, many going into business are actually great with the set-up but not so hot at managing the financial side. If you've ever watched Dragon's Den and the number of pitchers still rocking up with no idea for their own figures, you'll see this as both unsurprising - they are busy! - yet kind of shocking - wasn't the plan to take control?
With the rumour that there's going to be a major financial downturn in 2017, the need to seek funds and take care of them properly is going to be... well can you have: more than essential?
1. Get an accountant
They are not that scary, and most offer free consultations. The saving on your accounts will be worth what you pay them as well; if not that will inspire you to earn more - they should be able to help you by suggesting ways to do that too. Plus you can shop and ask around for the one that makes sense or feels more trustworthy to you. Check for accreditation and testimonials.
2. Use grant and loan search finders
There are two things with this, firstly it's a job in itself, so prepare your mindset for searching well for something fitting your enterprise. Secondly, you will probably need a business plan and a schedule of how/where this money is being utilised. A stressed-out trader I spoke to last year shrugged and said they couldn't be bothered with all the hassle. If you can be then you will be rewarded with capital. Here's a government grantfinder with access to loans, mentoring, consultancy and funding programmes. With OPM (other people's money)it's all a question of meeting their criteria.
3. Understand that borrowed money is not credit
It's debt. Who gave you 'credit', that's not a political question, it's a rhetorical fact that no one owes you a thing.With the accountant and any borrowings and plans you make you will have a better time in the long run if you compartmentalise in your mind what money needs to be paid back as soon as possible and to honour the people that have invested in you - generally investors like big returns and higher interest on their money than if it was sitting in a bank, 10% is usually an acceptable return after one year. There is also help out there for advice on debt issues.
4. Use all your resources
These are money-saving. But more importantly they will make you more savvy and blessed with more nous. Another way of putting this is: it will make you more financially intelligent. It's not important that 'they' didn't teach many money classes at school, what's vital is that you understand that today there is something you don't know: and it's up to you to go out and get that knowledge or work with people that can help you understand the best way forward.
Our next Meet 19 is on November 23rd in Brighton, FREE tickets are available from firstname.lastname@example.org or by getting in touch here
Great to meet Steph from Albion in The Community today at the Meet 19 October 2016 event.
While there networking with other Meet19ers she told us that there are still charity marathon places left (for the Brighton Marathon 2017) if anyone fancies running on behalf of a good local cause. Having run the race myself I have to say it's a monumental personal and spiritual achievement and I urge anyone to give it go - not only are the months of training before a real fitness and health game-changer, the incredible day itself and good feeling from helping others will give you one of the greatest memories of your life. Get in touch with Albion in the Community here.
Finally got to see what goes on at the Barclays startup initiative Eagle Labs (Preston Circus, Brighton) where freelancers, reps and new to business rent ex-bank space and use office facilities.
Most impressive. Rents around £200 for the month and appear to include all sorts of exchanges you can make with fellow office sharers.
My visit was care of Financial Advisor James Ruff, a partner at St James Wealth Management, who graciously gave up an hour of his time to give me an excellent tour showing me the tech workshop, video and photographic studios, a floor used by a new company plus a 3D printer. A great place to pop by and stop in for a coffee and top up your inspiration perhaps.