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Ted James

"As a one-on-one financial coach, Ted James has seen and helped it all. He created his site, Ted Knows Money, to share money tips and help people get complete control of their finances."

Why Business Owners Should Make Accurate Financial Projections.

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Why Business Owners Should Make Accurate Financial Projections.

Every small business owner wants to make a profit. You invest time and money into your business to earn revenue, but how much cost and income is realistic for a healthy business? Individual financial reports can shed some light, but combining them into a financial projection can put everything into perspective. Today, Cymru Marketing Journal offers some tips and resources to guide you through the process.

First, What Are Financial Projections?

Financial projections forecast your business’s expected expenses and revenue. One-year, or short-term, projections are usually forecast by month. Long-term financial projections usually cover a three-to-five-year timespan.

How Can You Create These Projections?

New small business owners don’t have previous data to use for projections, but researching industry and overall economic trends can provide workable numbers.  Existing companies use data from the past three years. Several different financial reports go into your financial projections.

It’s important to use realistic numbers when creating your forecast. Otherwise, they’re meaningless. Also, you need to invest in accounting software that works for your business and will allow you to cultivate deeper insights without paying a fortune in registration fees.

Projected Expenses

Some monthly expenses are fixed, such as rent and other overhead costs. In some months, you may spend heavily on marketing and inventory purchases, while those costs may be minimal in other months.

Expected Revenue

Many businesses experience predictable busy seasons; lawn care companies are busiest during warm months, while some retail stores make many sales near holidays. Study previous sales numbers or market potential to estimate how many items you’re likely to sell and their attached price tags.

Cash Flow

Expenses sometimes come months before the resulting revenue. Retail stores must order seasonal inventory months before it’s sold. Also, some companies allow clients to purchase on credit with payments due when statements are distributed. Knowing when cash goes out and comes back into your bank account is crucial.

Balance Sheet

This report includes all business assets and liabilities. Inventory, equipment and accounts receivable are examples of assets, while accounts payable and other debts are liabilities. The balance sheet total shows the difference between the values of your assets and liabilities and can be a positive or negative number.

Profit and Loss Statement

This statement uses data from your projected expenses, expected revenue, and cash flow reports to estimate potential profits or losses.

Break-Even Point

Experts understand that it may take some time for new companies to break even. Knowing when your business should become profitable gives you a framework for assessing your business’s viability.

Are Your Accounting Skills Up to Par?

Not every entrepreneur knows about running a business and its finances. However, it’s not too late to learn. Online degree programs provide flexible ways to learn new skills while operating your company. An accounting degree helps develop financial skills, including making realistic predictions. MBA degrees teach more in-depth business acumen. Earning an online degree can help you make better business decisions for a healthier company.

Why Are Accurate Financial Projections Important?

For-profit businesses pay taxes. Most states require annual reports and tax payments; failing to do so may incur fees and penalties. Your business license can even be revoked. Accurate projections allow you to set aside monies to pay these taxes.

In addition, lenders need to see accurate, detailed financial projections as part of your business plan. Making and regularly updating your projections allows you to know and adjust your company’s financial expectations.

What Does Your Forecast Say?

Accurate financial projections provide many benefits to your business. Online degree programs and the right software can provide the know-how and how-to, and the time spent making these projections can make your business stronger. Whether you are starting up or an already established business looking for more exposure, Cymru Marketing Journal is here on hand to take care of all your marketing needs. We will write content and advertise your business to give you added help to generate more leads. We’d love to hear from you.

#Business #BusinessFinance #Cashflow #BalanceSheets #FinancialProjections #ProfitandLossForecast #ProfitandLoss #Accounting

5 Tips for Marketing Your Company as a Senior Entrepreneur

Keep your business moving forward
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Written By: Ted James.

Cymru Marketing Journal offers local, national, and international digital marketing, including outbound marketing, blog posts, and social media advertising. Read more informative articles today!

5 Tips for Marketing Your Company as a Senior Entrepreneur

You have more free time than ever before once you reach retirement. If you want to make the most of your golden years and earn some additional income, you can start a business as a senior entrepreneur. Learning how to market your business is crucial for success. Use these five tips from Cymru Marketing Journal to develop an effective advertising strategy for your startup.

1. Learn How to Network

As The Total Entrepreneurs explains, networking is a way to form working relationships with like-minded companies in your industry. It can help you draw in new customers and retain existing ones. Cultivating a business network allows you to cross-promote your products and services to grow your target audience. As a senior entrepreneur, it’s vital to find a network that enhances your startup and improves the return on investment of your marketing strategy.

2. Create a Dynamic Website

According to one study cited on sweor.com, 46 percent of people are more likely to buy products and services from companies that have appealing websites. This statistic shows that developing an attractive and user-friendly website is one of the most important aspects of marketing a business. Create an effective website that will draw traffic and leads by ensuring it meets the following criteria:

  • Has an attractive color scheme that is eye-catching but not distracting.
  • Features user-friendly navigation so that customers can quickly locate the information they need.
  • Provides all of the information clients need to make decisions about their purchases.
  • Contains relevant content that keeps users engaged with your company brand.

While you can save on web design by using a free website builder, hiring capable web design professionals is the way to go if you want a dynamic site for your business.

3. Develop High-Quality Content

An effective marketing campaign uses a variety of content types to draw awareness to your brand voice. While you can use any combination of content types, including email marketing, social media advertising, and print campaigns, you must ensure that each piece of content you produce is high-quality.

All of the content you publish should be relevant, informative, fresh, and engaging. Any piece of content that meets these criteria is likely to rank highly on search engines, which drives traffic to your website and increases sales. The quality of your content is often more important than the quantity you produce, so work on creating dynamic content if you want to make the most of your marketing strategy.

4. Harness the Power of Social Media

Social media is a powerful advertising tool that can reach a broad audience with minimal cost and effort. Expanding your company’s presence on popular social media platforms is a great way to promote your brand. Spend time exploring each platform you use so that you know how to leverage its power to grow your business.

Advertising on social media is also a low-cost way to get the word out about your products and services. To create a memorable Facebook ad, this tool creates Facebook ads. Choose a template and then add in your own text, images, fonts, and design elements.

5. Stay Aware of New Trends

Because technology is constantly evolving, new marketing trends emerge each year. You must be aware of these new tools and techniques if you want to stay relevant in the competitive business industry. One way to do this is by enrolling in an online business program. You’ll learn valuable knowledge that can help you pilot your startup successfully, and you’ll also have a better understanding of current marketing strategies. Any degree linked to business, including marketing and leadership courses, can be an asset.

Becoming a senior entrepreneur can be rewarding but poses a few unique challenges. Creating a strong marketing campaign is one task that many entrepreneurs struggle with, but if you use these tips, you can develop an advertising strategy that takes your startup to the next level.

Keep your business moving forward

#seniorentrepreneur #entrepreneur #marketingtips #dynamicwebsite #content

Must-Know Tips for Navigating Late Payments and Protecting Customer Relationships.

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Must-Know Tips for Navigating Late Payments and Protecting Customer Relationships.

You love having your own business, but you could do without the occasional customer who misses a payment. As an entrepreneur, you depend on on-time revenues to stay afloat, yet you must also manage your customer relationships with care. It helps to learn how to collect late payments without making customers upset or ruining a professional reputation.

Use Invoicing and Payment Software

Rather than manually handle payments and invoices, business owners can use reputable payment and invoicing software. According to professionals, some benefits of using billing software include creating quick invoices, managing business operations easily, and improving brand identity. Invoicing software also lets you accept various payment options to meet your customers where they are regarding their ability to pay. Software that can authenticate bank account information can increase your payment options. With more payment options, you could increase your chances of receiving prompt compensation.

Use Contracts to Set Clear Payment Expectations

It often helps to get in front of payment issues rather than wait for them to crop up. If your customers sign a contract before you work together, use the document to establish your payment expectations. Specific details to note include due dates and details and late payment conditions and terms. Even if a customer does not pay you on time, you at least allow her or him to understand your expectations and get on the same page.

Offer Incentives for Early Payments

One great way to encourage on-time payments and protect your customer relationships is to incentivize early payments. For instance, you could offer a 2% discount for paying an invoice within 20 days rather than within 30 days. Offering an incentive could also safeguard your supply chain, boost liquidity and keep your stock moving at a steady pace.

Create a Process for Tracking and Chasing Payments

If you use invoicing software, it could make it easy to implement a process for tracking and chasing late bills. Your process could include automated past-due reminders, so you have one less thing to add to your to-do list. You could also establish follow-up points for when invoices remain unpaid after a specific number of days, such as three days overdue and one week overdue.

Make It Quick and Painless for Customers to Pay

One reason for late payments could be customers feel your payment options make it cumbersome for them to settle their accounts. Consider asking your customers their preferred methods for paying their bills, so you may implement them and show your customers you listen to them.

Create a Script in Advance

Rather than communicate off the cuff, create a script for contacting individuals about outstanding payments. The right words and your tone of voice could change a person’s mind for the better or the worse. Another reason to use a script is so you keep your goals and intentions in mind, no matter what the other person says.

Start with a warm tone and a gentle reminder of the past-due amount. If you must escalate your efforts, refer to the contract terms and what happens if the invoice remains unpaid. Endeavor to remain professional and polite, as hostility on either person’s part only worsens the situation.

You must move carefully when navigating late payments, and having the right tips helps you understand which moves to make. By learning how to handle the situation, you make yourself a better and more understanding business owner.

For More Financial Matters Please Visit This Page, Part of Our Sister Site.

#debt #debtrecovery #businessdebt #debtconsolidation, debtfree #debtmanagement #latepayments

Here’s How You Can Get Out of Business Debt.

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Written By: Ted James – https://www.tedknowsmoney.com/

A healthy bottom line is integral to the success of any business, and good debt management plays a big role in achieving this goal. As a small business, you may not always have an abundance of funds available for business needs, this is where debt can help fuel your expansion plans, increasing business production, product development, and more. But, facing an excessive debt burden can prove to be a huge challenge that threatens the success and survival of the business. To help keep this burden in check, this article by https://www.tedknowsmoney.com/ explores four effective strategies you can implement starting today.

Review Your Finances

Reviewing your financial statements will provide a clear picture of the strong and weak areas of the business, this can include credit card bills, bank statements, and more dating back at least a year. On review, you’ll identify where you need to curb spending and assets which can be liquidated to increase your repayment capacity.

Next, create a new budget for the coming six months that prioritizes repaying debt, while ensuring you maintain enough cash to afford business expenses. This will provide two benefits – first, each month the debt burden will reduce, second, you’ll protect your business from undertaking additional debt.

If you’re struggling in the budgeting process, consider hiring an accountant who can help review statements, curb expenses, and create a financial plan for the business.

Reduce Expenses

While this is an obvious solution, it’s not the easiest to execute. But, a review of your financial statements will provide clarity regarding areas of business where spending should be curbed.

To further simplify this process, divide your expenses into categories such as:

  • Essential Expenses: This includes taxes, utilities, rent, salaries, and other expenses which cannot be eliminated. Your new budget will need to have provisions to cover these each month.
  • Negotiable Expenses: According to the US Chamber of CommerceIf you have good relations with suppliers, try to negotiate an altered repayment schedule. This can include making payments in installments, or a lump sum on a mutually agreed future date.

Beyond these, you’ll have expenses that you will be compelled to reduce, such as selling expensive office space, getting rid of unused assets, or reducing the number of employees. None of these decisions will be easy to make, but they will help repay debt and secure the future of your business.

Consolidate Debt

As reported by Debt.org, debt consolidation is the act of taking a new loan to pay off existing debt. The process is straightforward, you visit a lender and provide the details about all your current debts and business finances. If they approve your request, they’ll undertake the responsibility of repaying your existing creditors. Going forward, you will be liable to pay your new lender the amount equivalent to your debt, but you’ll enjoy lower interest rates and affordable monthly payments.

Debt consolidation does not erase your debt, but it can make repayment easier. Lenders such as banks will often issue secured loans i.e. the loan will need to be backed by an asset such as your home, car, etc. If you choose to utilize this option, invest time towards creating a repayment plan to avoid taking on any additional debt.

Establish an LLC

Running a business as a sole proprietor puts your personal assets and finances in jeopardy as you and the business are considered a single entity. By registering your business as a Limited Liability Company, it will become a separate legal entity, safeguarding you as the owner from business-related debts and liabilities. For instance, with an LLC, a creditor will not be able to seize your home in case of non-repayment and only use business registered assets.

Additionally, an LLC allows you to use business expenses as tax write-offs which can help save thousands of dollars a year and be used towards debt payments. As LLC requirements differ based on state, it’s best to delegate this task to a formation service.

Through these strategies, you’ll gain greater control over business debt, resulting in inefficient utilization of resources, healthier cash flow, and securing the long-term success of the business.

#businessdebt #financialdifficulty #financialproblems #debtfree

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