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 businessand will allow you to cultivate deeper insights without paying a fortune in registration fees.
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.
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.
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.
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 sheettotal 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.
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.
I believe there are rules for one and not for the other? Did you know the federal reserve is owned by closely guarded corporations that get rewarded 6% of the world’s currency? (See Mike Maloney – Hidden Secrets of Money). Thus people who have a high net worth are given incentives to keep the economy wheels churning.
“I understand and appreciate the British sense of fairness and I do not wish my tax status to be a distraction for my husband or to affect my family, for this reason, I will no longer be claiming the remittance basis for tax. This means I will now pay UK tax on an arising basis on all my worldwide income, including dividends and capital gains, wherever in the world that income arises. I do this because I want to, not because the rules require me to.”
(So my question is why has she never voluntarily paid the taxes before and it is only because her husband and herself are in the spotlight that she has changed her tune)? Imagine how the taxes of all NON-DOM could help the poor?
2.Mental health Statistics show a growing body of evidence, mainly from high-income countries, that there is a strong socioeconomic gradient in mental health, with people of lower socioeconomic status having a higher likelihood of developing and experiencing mental health problems.
3.Caring – People only care if they are directly affected by something or someone. This could be their beliefs in which they would be advocates or for people that they know such as family, friends, and sometimes even co-workers. It is the social connection people have with one another that allows them to show emotion to another person. The only other time people will care is they are on the job and must, i.e. Doctors & Nurses, Firefighters, Care-workers (who are doing good for society as a whole rather than getting personal), or if a person randomly witnesses someone that needs their help like for example if someone was injured or dying. Volunteering is an act of kindness but does not mean necessarily you care about an individual but more so about a cause. https://disabledentrepreneur.uk/category/emotions/ Politicians have to show they care because they would not have a job if they didn’t not only that it would cause a public uproar.
I once did asocial experimentto get support from my family for my business and not one person bothered sharing or interacting. I drew the conclusion they did not want me to succeed.
People living below the breadline.
4. (Robbing Peter to Pay Paul).
Around 5.2 million people claimed universal credit as of September 2021, a decrease on the record-high six million recorded at the beginning of the year but still a marked increase compared to pre-Covid levels, which were around three million.
Anti-poverty experts welcomed a £20 weekly increase in payments for those claiming universal credit (UC) and working tax credits, introduced by the government at the start of the lockdown last year.
But the government cut payments back to pre-Covid levels at the beginning of October, despite widespread condemnation. That is a deduction of £80 per month and with everything rising including food and fuel costs how on earth is the government expecting people to survive???
If people were struggling before the increase what makes the government think they are not struggling after the decrease?
How many people are at breaking point or have been driven over the edge?
Does the government care that some people are in sheer distress and do know how to manage their money or know-how to survive? Yet the NON-DOMs of this world can get away without paying taxes. If the NON-DOMs did not hoard money just like the millionaires and billionaires and actually had wage caps the world would be a better place.
5. Social Experiment – I am always testing how well my articles do and my social media marketing efforts and thought to do a social experiment to see how well I would compete with a high profile person sharing their posts on LinkedIn, obviously I do not have the same amount of followers as this said individual but looking at his previous posts, for me I did not do too bad, in fact, I did better than some posts his entourage had written in the past.
So I have come to the conclusion I can easily be a social media manager for the posts and articles that this individual churns out but I do not get the same income, anywhere near in fact, to what these people get. I am certainly not going to beg or go cap in hand. I am confident though because I did share a post the powers that be zoned in on me, so they will know who I am talking about. Put it this way, he is very high up the ladder with platinum blonde hair and talks Queen’s English.My point is if I can get this article to be seen, I am open to opportunities to be hired for my services. such as content writing and social media management.
6. Grim Outlook – Russia is condemning the west and has threatened food shortages because of all the sanctions including exporting wheat. It is being predicted that we will be like Venezuela where families have had to make grim choices to survive. Venezuela has faced what some consider “the Americas’ greatest single humanitarian crisis.” The nation’s economy and the political structure collapsed even though it possesses the world’slargest known petroleum reserves. More than 5 million people fled the country and an estimated 91 percent of those who remain life in poverty. Nearly a third of all Venezuelans—more than 9 million people— are food insecure or malnourished. https://www.dailymail.co.uk/news/article-5449023/Venezuelans-eat-rats-dogs-economy-nosedives.html
“No matter how hungry I am I will not eat our cat”.
Therefore what is the future outcome for the poor who will have difficulty putting food on the table?
How does the government expect people to survive?
I am concerned for the people that will have serious mental health issues because of the powers that be playing God with people’s lives.
Everyone on this planet is here to survive and to be happy. If you take away people’s happiness then you take away people’s reasons for living.
I read all these online websites, white papers, and jargon about suicide but all it is is black pixels on a white background, all these people that go around stating they are experts would be useless and powerless in talking someone out of suicide. It is all noise, smoke, and mirrors.
P#tin is playing God.
7. Russia’s invasion of Ukraine threatens to spark a global food crisis, as simultaneous disruptions to harvests and global fertilizer production are driving up food prices and sending economic shock waves throughout the world.
Ukraine still has some 20 million tonnes of wheat and corn left to export from the 2021-22 season that cannot be exported because Russia is blockading ports on the Black Sea and the Sea of Azov, leaving 100 foreign vessels stranded.
8. Depression – I will be the first to admit it, I suffer from depression and have done so for many years. I have managed it to the best of my abilities, but occasionally I will have my dark days. I will try to keep myself busy and have a dedicated website that I am the Editor of www.disabilityuk.co.ukwhich forwards to www.disabledentrepreneur.uk
Whilst writing about this I write with a heavy heart, this is NOT how we are supposed to live and this is not how I am supposed to live.
Do the powers that be, forget that we came to the earth with nothing and we will leave with nothing. So why be Greedy?
The powers that be obviously do not have a conscious.
Will the people that have caused all the atrocities to live fruitful lives or will they come back onto this earth to suffer a fate worse than hell? I believe they will come back to earth and suffer. Have they not thought that Karma can send them to earth to suffer in their next life. Yes, I hear you there will be the ones that do not believe in God or life after death, but what if their belief system was wrong and we are spiritual beings in physical bodies and that when we die we turn into energy or we teleport into different dimensions, (Quantum Entanglement) or worse still come back to earth to suffer another 80/90 years?
Do you think it is a coincidence there is only 1% of the richest people on this planet or is it there is 1% of pure evil? This then shows there are 99% of good people are being treated badly and are maybe only on this planet to be given a second chance and do good for the world. I for one would never want to be categorized be part of the 1% wealthy and would never want that sort of wealth, in fact, I am on the opposite side of the spectrum, yes I want my own home, have a nice car, heal my mind, body, and soul so that I can travel the world whilst I am still on this planet, but other than that I just want to live a happy, peaceful and happy life without any worries.
Money vs Currency
9. Whatis money and how are taxes being spent- I would love to see how the British taxpayer’s money is used and for what. I would only use w#r in defense not to start them. I would stop making money off the back of poor people to suit my own ends. The British public does not get a say in what happens with our country, it is all decided behind closed doors.
If you look at the Oligarch’s bank accounts that have been frozen and the Russian Banks that have their assets seized how is the P#tin W#ar still being funded? One needs to read between the lines to know what I am saying here. What is going to happen if the debt ceiling collapses or our bank accounts get frozen because they can, what then? What is happening with all the frozen currency and bank accounts where has the currency gone?
The power to vote – would you allow uneducated people to run your business, of course, you wouldn’t, so why do you give uneducated a chance to vote that do not understand the first thing about business, economics, or our monetary system?
Brexit – Furthermore, I could not vote because I was in the hospital on the day we were voting to stay or leave the EU, I wonder how many other people never voted that day? My point is that this tells me the voting was not accurate and the final numbers were decided for us.
The world is a very evil place, and although I do say there are many good people in this world, there are the ones that own the federal reserve that wants to destroy you and take away any prosperity. The scammers, the thieves, and the con artists that give you currency in one hand and take it away with the other. The people that lie in wait so that they can reel you in with the loans and credit cards to watch you suffer later. The financer (Mike Maloney) aptly explained the meaning of currency and said if there was only one dollar in existence and you borrowed it where would you get the second dollar from to payback of the first dollar plus interest?
10. Wishful Thinking – I wish for this Dictator that caused these atrocities “an eye for an eye and a tooth for a tooth” as it is said in the Bible, Book of Exodus 21:23–27. It is not for me to cast judgment but for God to punish people for what they have done wrong in the world that preys on the vulnerable.
I know the outlook looks grim for most of us but we can learn from this and teach people how to survive and find happiness. (If you find my article insightful please share it).
I have been given an opportunity to motivate, empower, teach and spread awareness. If the powers that be can see how well my articles are viewed they should give me a job. I should be rewarded for the good I do and not be punished by the greedy.
I have lived through my own war and have a battlefield of scars and one day when the time is right I will share my story, but for now I want to focus on what is happening in the world today and get people to notice that the world cannot suffer at the hands of the greedy minority. Too many lives are being lost and people are suffering from mental health and grief.
11. Suicides – I have a question for the wealthy or the powers that be, or the 1%, if everything they owned suddenly was taken away from them and they found it hard to put food on the table and no matter what they said or did never got better but perhaps worse, how would they handle life?
Would they stand in the mirror every day saying “you can do this”? or would they give up the fight?
Not everyone has a strong mind., not everyone knows how to survive and some try to drown their sorrow in alcohol or take recreational drugs, or someone simply just give up?
I will admit I have had suicidal thoughts in the past over different life-changing events, but somehow have found the courage to battle on.
I have never forgotten the people that hurt me, tried to cause hardship, criticize me, or humiliate me. I may have forgiven, but never forgotten.
At one point I felt I was in a war zone of my own. I am here today not because of any support workers or from friends or family because the few that knew what happened in my life have not been there for me. I am only starting to tell my story now and I have learned one thing in my life, never rely on anyone and never tell them all your secrets and be careful who you trust or befriend. I am here because I know I am on a mission, but I do sometimes question my strength.
I am slowly starting to heal. With what is going on with the world I am now thinking that the only thing that is left for me is neuroplasticity, learn it, practice it and teach it. There is too much negativity in the world that suck out all our aspiration and happiness so we need to find a way to conquer and battle on, with positive thoughts.https://disabledentrepreneur.uk/category/neuroplasticity/
13. The Sad Truth & Stories of Suicides Due To Debt.
New research by Money and Mental Health Policy Institute, has found that 2.5million people with mental health problems who fell into debt during a pandemic considered suicide.
The sad truth is people commit suicide because of debt.
People who are unhappy, helpless, and scared, cannot cope with the same thing day in and day out and nothing they do to make things better materializes so one day they lose the will to live and the people that suffer after they go are their friends, family, and the cycle continues.
The way I see things is if you want to succeed in this world is one of two things, (1) you either have to rub shoulders with the people that matter and offer value or (2) have something that other people can relate to.
I look at these big agencies and the billionaires that own them yet profiling the CEOs they do not have a large social media gathering which makes me wonder what they did to get where they are today considering I am working at the same speed, probably doing the same job with a larger following than them, minus their payrolls?
I am available for content writing hire and social media management.
I was going to put a paywall on this article similar to what a lot of online newspapers are doing as I would love to campaign and speak on behalf of people on low incomes, but cannot afford to do it alone on my own salary. I know the majority of us are all in the same boat and we are all here to survive. I do have an advantage though I have a platform to put my point across and a large network of connections on LinkedIn connected to some very affluential people so my voice will be heard. I just need some support to be able to campaign further. If you do not want to hire me, please use the affiliate links embedded in the site or spare the equivalent of a cup of coffee for £3.00 this will go towards advertising and marketing costs. My next topic of discussion will be “How To Become A Billionaire”.
Michael Maloney is a financial expert, he is the host of the smash-hit video series Hidden Secrets of Money, the author of the bestselling precious metals book Guide to Investing in Gold and Silver.
Mike is one of the world’s most highly regardedinvestment education companies and a global leader in gold and silver sales.
Mike has traveled the world sharing his knowledge and passion for economics and monetary history with audiences from Silicon Valley to Wall Street, from Hong Kong to Rome.
Mike has researched financial markets, monetary history, and global economics, Mike discovered that the same economic cycles kept repeating over and over throughout history, from ancient times to the modern-day.
Mike is quoted as saying “For 2,400 years as people have lost faith in fiat currencies, they have turned to ‘real money,’ gold and silver,”and “Today the stage is set for a worldwide ‘gold rush’ to the safe haven of precious metals just when supplies of those metals are precariously low. The opportunity for those who position themselves accordingly, ahead of the crowd, is like none we will see again in our lifetimes.”
INVEST IN GOLD AND SILVER, CLICK THE AFFILIATE LINK BELOWTO SIGNUP!
HIDDEN SECRETS OF MONEY
I have purposely not put these videos in chronological order because you need to watch the first video to get a grasp of what Mike is teaching. Mike teaches us about the money system and what is money and what is currency, yes there is a difference and how the global economy works.
The “Hidden Secrets of Money” videos are easy to understand and the concept of money should be taught in schools. We should all know how money and currency are created and learn about debt ceilings and deficit spending. This is also good for budding economists/financiers contemplating careers in the financial world.
About Mike Maloney.
Mike Maloney is the host of the smash-hit video series, “Hidden Secrets of Money”; former Rich Dad/Poor Dad advisor; author of the best-selling precious metals book.
Final Thoughts From The Editor.
If you see what is happening today with P#tins W#r, with all the sanctions, have you wondered how these people (Oligarchs/P#tin) are trading/living if their bank accounts are frozen?
If you look at the bigger picture w#ar is big business, the production, manufacturing, distribution of artillery, ammunition, staff, and operations, etc. Furthermore, the owners of the Federal Reserve get an annual 6% commission, on our hard-earned sweat and labor, yet no one knows who these people/corporations are because it is a closely guarded secret.
We are pawns in a massive game of monopoly.
We do not know what the future holds, banks have been known to close.
I am not an economist, I simply write articles on the financial sector and am an affiliate marketer, affiliated with BullionVaultand CashPlus Bank.
“I believe in never keeping all one’s eggs in the same basket”.
“If you found this article useful, please share it with your friends family, and on social media. Let’s help each other build a brighter future”.
“The farther back you can look, the farther likely you will see into the future.”― Winston Churchill
Disclaimer – At Cymru Marketing Journal/UK Website Designers, we are affiliated with BullionVault and CashPlus Bank and may get a commission on each person that buys bullion or sets up a business bank account. If you are a digital marketer or wish to monetize a website/blog/article, just follow the “BuullionVault –Link“ or “CashPlus Bank Business Account” and start advertising these businesses today.
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.
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.
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.
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.
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HIDDEN SECRETS OF MONEY – AUTHOR / PRESENTER MIKE MALONEY
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