Good financial management is essential when starting your business and for the expansion of your business. Getting your finances in order means your business can work more efficiently and puts you in a better position when seeking funding for growth. Successfully managing your finances can create sustainability and growth for your business, so it's important to get it right.
Whether it's balancing the books, budgeting or good cash flow management, you can help improve the financial health of your business.
Finances when starting a business
When starting your business there are a few key questions around business finance to consider or understand.
Seeking or obtaining additional finance
Businesses may seek finance to start a business. Established businesses may seek finance to improve cash flow or replace machinery or equipment of some kind. While there are many other reasons why a healthy business will seek finance, for some it may flag underlying financial problems.
Before you seek finance, carefully consider the following questions with a qualified accountant or business advisor:
- What does your business need?
- Why are you seeking finance?
- Should you be seeking finance?
- What finance options are available?
- Which finance options are best suited to your situation?
- Do you have the ability to repay the finance?
- How will you manage loan or finance refusal?
Obtaining finance is often a crucial step in business growth. An up-to-date business plan supporting your new goals and objectives will also ensure you are well prepared when seeking finance. There are various sources of finance options available including savings, investors and government grants.
Managing your finances
Successfully managing your finances such as budgeting and cash flow can mean you always have enough to pay your creditors and also have enough profits to put back into your business. Read the following information to help you manage your finances:
There are several ways you can manage your finances and improve your financial situation. These may include seeking professional advice or financial help, introducing financial systems or obtaining financial training for yourself or your employees.
Update your business plan with your financial planning information
It's worth spending the time to prepare a business plan, regardless of the stage of your business. Download our free Business plan template to help you get started.