How a Financial Business Plan Will Assist With the Management of Cash Flow

The management of cash flow is perhaps the most important issue that a business executive must grapple with in order for the business to remain competitive. Cash flow represents a business’ operating activities and how this influences the movement of cash inside and outside the business at certain periods. This article will address the importance of cash flow, explaining its uses and highlighting how this component of the financial Business Plan is designed to accurately forecast and present the pattern of income and spending in a business to ensure that it is capable of settling its bills on time.

Firstly it is important to distinguish between cash and profit. A profitable business year is still susceptible to upsetting stakeholders at certain points when and if the business is unable to pay its bills resulting in a negative cash flow. Profit is usually assessed over a longer trading period (1-year) and fails to take in to account the cash flow slumps. A business to customer relationship built on the exchange of cash for a product or service – often final payment is made once the product/service is completed to the customer’s satisfaction, known as a consignment agreement. However this bears no impact on cash outflow – the production and investments that go into the goods still require funding and the business is still liable to settle payments on fixed dates – overheads, employee wages and loan repayments. What is the business dependency on the collection of payments? If a customer is behind schedule with payment how will this affect your cash flow and the ability to meet these deadlines? Have you thought about implementing a contingency structure to extend the duration your business can afford to go without payment?

Available cash included in the cash flow will not include long-term deposits that cannot be immediately withdrawn (i.e. bonds), money owed by customers and stock. A cash flow forecast is mapped on a single spread sheet and will help you to forecast and identify potential system or operational improvements. Would it be more economical to hire another member of staff and purchase another fork lift to increase production or to operate additionally on a Saturday?

The cash flow forecast is incorporated in the Financial Business Plan and will also identify if a business could adopt staged forecast payments to better manage cash balances. Further methods of tighter control of payments may be achieved through issuing invoices more promptly, extending credit with suppliers, extending overdraft facilities and leasing equipment rather than buying it. General business practice is to stop work if the customer breeches payment agreements. Allocate your resources elsewhere and let the administration or third-party companies in place willing to buy your debt in return for a percentage of the debt chase those late payments.

The financial plan will also highlight the benefits of changing your supplier management and the most suitable payment schedule based on your outgoings. If an infrequent high supplier cost is an issue, consider adopting a just-in-time strategy which reduces risk through smaller orders and fewer inventories.

It is therefore important every business considers its business planning requirements and assesses the benefits of drawing up a financial plan, especially those businesses who may have problems with current or future cash flow.

Getting Help From a Financial Business

It seems like everywhere you look today there is a financial business that has opened their doors for business. Under this category, there are many different business entities that exist. From financial planners, investment companies, market analyzers, and more, financial businesses can help you plan out your retirement fund, teach you how to invest, how to trade in the stock markets, and more.

Finding the right financial business to assist you with your needs is pretty easy. You can either check your local yellow pages, newspapers, or even the Internet to find a wide variety of financial businesses. Then you need to call and schedule a consultation appointment to find out whether or not this particular business will suit your needs.

When it comes to a person’s finances people are a little reserved. They have to trust the business to handle their money the way that they would if they had the expertise. They don’t want a business that will take too many risks with their future. They are taking advantage of a financial business in order to secure more money for their retirement, to leave to their families once they have passed, and more; therefore, they want a business that has their best interests in mind.

Also, consumers love to be kept in the loop. If there isn’t sufficient and efficient communication between both the business and the consumer, consumers will typically decide to pull their business from one to take it to another that offers better communication; therefore, resulting in a higher level of trust.

The next time that you are looking for a way to rollover your 401K or when you are considering investing in the stock markets, remember that a financial business can help; however, make sure that you feel comfortable with the particular business that you choose. After all, it is your money and your future.

Home Improvement Tips: Ways to Increase the Value of Your Home

Reasons for A RedoHome improvement projects often begin with someone saying, “Wouldn’t it be nice if… ?” usually followed by a wish for a remodelled kitchen or a room addition for space to accommodate every family member’s needs. More often than not, reality and dreams don’t coincide, due to limited funds for realizing the dream, or limits on the available space. The trick: turning your dreams into reality. Begin with a realistic evaluation of your needs. Homeowners usually consider home improvements for one of the following reasons.You may feel the need to update something that is out-of-date. If your kitchen colour scheme was perfect a few decades ago but no longer works, now may a good time to update it.Some home improvement projects grow out of an immediate need to replace broken or inefficient fixtures. If a sink, tub, or toilet needs to be replaced, consider taking advantage of the opportunity to do a makeover on the entire bathroom.If you’re preparing to sell your home, you’ll want to be sure to get top dollar from the sale. That’s great motivation for some home improvement projects.You have decided that staying put and improving your home is a better option than moving.Your family has grown and you need more space.Improving to Move? or Improving to Stay?Evaluate your plans carefully if you’re improving your home to list it for sale. Cutting corners may hurt your prospects rather than helping them. But don’t go overboard either. Potential buyers may prefer not to pay for some of the extras, such as a hot tub or pool. You’re better off keeping the changes simple.And remember that buyers who view your home may not share your tastes and may not appreciate the care you took to find just the right shade of green paint for the walls.You’ll find that improving to sell is easier if you can think about it from the prospective buyer’s point of view: What is important to the home buyer? Here are a few remodelling projects buyers are likely to find valuable:Adding or remodelling a bathImproving the kitchenAdding a new roomLandscapingAdding a bedroomAdding or enclosing a garage.If you’re remodelling because you want to stay in your home, you should still avoid over-improving it. You’ll probably want to sell it someday, and even if your house is the best on the block, it may be difficult to convince potential buyers to pay for the things you considered important. And when you consider making improvements, keep in mind the value of other homes in the area. Your home’s value should not be more than 20% above the average, which means that a $10,000 kitchen improvement project well could be a better investment than a $10,000 hot tub, especially if yours will be the only home in the area with a hot tub.Home Maintenance versus Home ImprovementsIt’s unfortunate that some home improvement projects are undertaken because something has broken. Replacing a leaky bathtub may be the first step to a major bath remodeling: since the tub has to be replaced anyway, why not do the whole room?While that might be a legitimate reason to remodel, avoid basing your home improvement projects on immediate needs. You’ll be better off if you minimize problems with proper maintenance. Examine every part of your home at least once a year. Check the roof, the plumbing, electrical wiring, etc. As soon as become aware of a problem, fix it. Making repairs when you’re first aware of them will help you avoid larger expenses later on. Keep in mind that maintenance does not add to the value of your home. Usually repairs are not improvements; they are necessities.Hiring Professionals May Save You Time and MoneyIt should go without saying that home projects can be expensive, so you may be tempted to tackle them yourself as a way to save money. That may be a smart move for small projects. You won’t have to wait for someone to fit your house into their busy schedule, and you can boast about having done the work yourself.But unless you’re very versatile, major home improvements are better left to professionals. If you decide to remodel the kitchen and plan to do the work yourself, will you be able to handle the plumbing, electrical, and carpentry work on your own?. And don’t forget that you’ll need to finish it quickly, because you won’t have a kitchen as long as it’s a “work in process” and eating three meals a day in restaurants could get expensive. Keep in mind, do-it-yourself jobs generally take more time. And you’ll be responsible for getting all the necessary permits and inspections.Hiring people who have the required experience can save you money and time, too. For example, these professionals can help you get a custom look using stock products, and that can be a significant savings. Getting something done right the first time will give you value that lasts for years.To find qualified and dependable home improvement specialists, check with friends, business associates, and neighbours for recommendations. Always get at least three references, and check them out thoroughly. Also check with the local chapter of the Better Business Bureau or Chamber of Commerce. Their numbers can be found in the community services section of your telephone book.Once you’ve located the necessary home improvement specialists, make sure everyone is in agreement about the design, the schedule, and the budget, and get the details down in writing in a signed contract.It’s also wise to check on professional certifications and licenses, where required, and be certain that the contractors you hire are fully insured and bonded. Your town or city Building Department can provide that information. And it’s very important that you make sure contractors carry workers’ compensation insurance: if workers are injured on the job, you won’t be liable if the contractor is covered. Request copies of their insurance certificates. And make sure that either you or your contractor have gotten any necessary permits before the work begins. Contact your local Planning and Zoning Commission for information.Here’s a quick overview of some of the professionals you may need to work with when you remodel your home:Architect: Architects design homes or additions from the foundation to the roof. If your project will require structural changes such as adding or removing walls, or if the design is complex, you will probably need an architect. Since architects may charge an hourly or a flat fee, make sure you get an estimate of the total cost: drawing up the plans for a major remodeling project can take 80 hours or more.Contractor: The contractor oversees the home improvement project, including hiring and supervising workers, getting the necessary permits, making sure inspections are done as needed, and providing insurance for work crews. It’s always a good idea to get proposals from one or more reputable contractors, based on the specific details of your project.Be sure each contractor bids on exactly the same plan so that you can compare their bids more easily. When you’ve chosen a contractor, make sure the contract specifies that you will pay in stages. You’ll usually pay one third when the contract is signed so that the contractor can buy supplies. The number and timing for making the remaining payments will depend on the size of the project. Do not make the final payment until all the work is successfully completed, inspected, and approved.Interior Designers: Interior designers are specialists who will provide advice on furnishings, wall coverings, colors, styles, and more. They help save you time by narrowing your selection, and save money because they usually receive professional discounts from their suppliers. When meeting with an interior designer, be sure to tell them about your personal style and preferences. Expect to pay anywhere from $50 to $150 per hour, or you may be able to negotiate a flat fee of approximately 25% of the total project cost.