The next key skill that business owners need is financial management.
Too many businesses are dependent on an overdraft or their own money to fund long term growth. Even if they have a strategic plan and good management they are unlikely to achieve their objectives unless they have long term funding to support their objectives.
There are several reasons a business may need finance:
- Start up
- Working capital
- Asset purchase
- Management Buy-Outs
Types of finance commercially available
- Invoice Finance
- Asset finance
- Trade Finance
- Peer to Peer lending
Finance is probably the one thing that is ever present in the mind of the business owners. From start up to maturity, financial management is an essential business skill.
Financial management can take many forms – breakeven point, cashflow, monthly management accounts, reporting on key performance indicators (kpi), projections.
Each of these has its own use. Breakeven point and cashflow are essential pieces of information for business especially in times of growth. The management accounts will help you to make good day to day decisions if they are produced regularly in a timely manner. The kpi reporting will tell you about the underlying business performance and the projections will help you to see where you are up to against your strategy.
Businesses that go on to flourish have a long-term financial strategy. They’ve got the right type of finance to support the growth they want and the correct reporting to make sure they stay on track.
If this is not your natural area of expertise and you need some help please contact us on 0161 723 3211 or visit www.wildsca.com