Financial Questions & Answers for Every Small Business

Financial Questions & Answers for Every Small Business

Financial Questions & Answers for Every Small Business

 

Finance issues that every business must be aware of. This is our third finance roundup of briefs. We are going to begin with Credit Score.

CREDIT SCORE

As the owner of your business your personal credit score is not something that can be ignored.

Before discussing the credit score , let’s differentiate it from the credit report. The report estimates the credit worthiness of an individual, corporation, or even a country. It is not one number, as is the credit score. It is an evaluation made by credit bureaus of a borrower’s overall credit history. A credit report is also known as an evaluation of a potential borrower’s ability to repay debt, prepared by a credit bureau at the request of the lender. Credit ratings are calculated from financial history and current assets and liabilities.

Continue reading this brief to learn how a credit rating is determined and even what factors can lower your credit score. Brief #04.39

INVENTORY ACCOUNTING and CONTROL

Businesses that buy merchandise for resale or who use material to produce a product must account for that material before it is delivered to the customer. All of this physical material, including supplies that are part of the final product, is classified as:

  • Merchandise – goods acquired by wholesalers or retailers for resale including goods held for sale in display rooms or out on consignment
  • Raw Material – items that will be a component of a produced good
  • Work-In-Process – the accumulated costs of partially completed units
  • Finished Goods – completed units, available for sale to customers

The small business entrepreneur needs a basic understanding of inventory accounting and this brief will give you a basic understanding. Brief #04.51

LEASING versus BUYING EQUIPMENT

Should you lease equipment for your factory, warehouse, store or office, or should you buy it – – assuming Your capital is limited and you must borrow or lease to finance the purchase?

This brief will share the pros and cons of leasing as well as the types of lease. Brief #04.53

Leasing versus Buying Business Location

Should you lease business property for your factory, warehouse, store or office, or should you buy it? The assistance of a financial advisor is strongly recommended, as the decision is important and fairly complex .

Although costs for the space from which you want to operate your business are significant, the buy or lease decision is more than a financial decision. Three factors should be evaluated: Market, Financial, and Other Considerations. This brief will help will the evaluation. Brief #04.54

Advanced Competitive Analysis (SWOT Analysis)

SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and for looking at the Opportunities and Threats you face. Strengths and weaknesses are often internal to your organization. Opportunities and threats often relate to external factors. For this reason the SWOT Analysis is sometimes called Internal-External Analysis and the SWOT Matrix is sometimes called an IE Matrix Analysis Tool.

What makes SWOT particularly useful is that, with a little thought, it can help you uncover opportunities that you are well placed to exploit. And by understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares.

This brief provides the explanation and questions you should ask yourself for an effective SWAT analysis. Brief #04.59

Retail and Restaurant Site Selection

The real estate saying “Location. Location, Location” is very true when selecting a location for your business.

If you want to find a “home run” location for your retail or restaurant business the very first thing you need to do is be prepared to do lots of research and fieldwork. In other words, expect to do homework.

While site selection is part art and part science, it is important to understand that art plays only a minor role in the decision-making process. As a result, be forewarned that you can’t afford to let gut, emotion and urgency become major influences when making your site selection decision. Continue reading Brief 04.61

Seven Keys to Generate Revenue

This Brief is a must read for all business owners regardless of what stage you are in.

INTRODUCTION: Building B2B (much of this also applies to the B2C world as well) revenue is not a dark secret. There really is no magic in finding new prospects. We seem to stumble across those who appear to be prospects every day.

However, wouldn’t it be nice to systematize our marketing and sales process in the same way we follow a methodology when providing our products and services? The ideal is to establish a process that builds revenue and continually identifies prospects and their readiness to buy.

Many firms have a sales and marketing plan that was developed long ago or just came about as their business grew. Times change, the economy shifts, potential and current clients have new needs, different opportunities arise, and plans need to be updated. Continue reading Brief 04.62 to discover the seven essentials to generating revenue.

If you need assistance with any financial issues in your business request your Free Score Mentor.

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