How much money do you need to start a business?

How much money do you need to start a business?

You are ready to start, you know the business structure, the resources you need to begin and how to maintain a vibrant flow of new customers. One last thing to check – how will you pay for it all?     When considering how much funding you need to start your business you need to consider: How long until your first sale from now When will you make a profit How much money you need to fund the business until profit These three elements will give you key information in determining how much money you need to start up. They will give you the foundations of your cash flow in the business. A healthy cash flow is essential for any business, big or small. If the business runs out of money, it will be impossible to pay suppliers. You may have to get other short term finance which may be expensive and it could become a very difficult time for you to trade out of. To avoid this happening, you need to estimate your future cash flow. This way, you can be sure that your business has enough cash to pay its way, and you can keep growing. This is set out like a profit and loss forecast but instead of showing when a sale is made; you put in the amounts when the bill is paid. Like a Profit & Loss statement, there are two parts – cash in and cash out!   Cash IN This is the moment your business receives cash in from a customer. If you get paid in cash at the moment you make...
Frigid About Finance? Thrive! TV Tips

Frigid About Finance? Thrive! TV Tips

Is finance leaving you frigid? Are you waking up at 2am wondering how you will pay the mortgage? You know you would really love to create the new business you are dreaming of but you are terrified it won’t make any money. Before you complete your business plan, take some time out to do some personal accounting instead. You need to make a safety net of cash to cover you just in case the business doesn’t take off like you thought it would. So, get your calculator out and work out how much money you need each month to cover your living expenses – your housing, food, utilities, clothes, travel, holidays etc. Then start saving! If you want to loosen up your fear around finances when you start your own business, having set aside a safety net of 8 months worth of living expenses will do that. Your Action: calculate how much you need to live on for each month start a savings plan That will help you rest easy and get back to your business...
When Do You Send Out The Bailiffs? Thrive TV Tips

When Do You Send Out The Bailiffs? Thrive TV Tips

Are Bad Debts Ruining Your Cash Flow? [new_line] Do you resent those clients who aren’t paying you on time, especially when you have spent late nights getting your work done on time or getting their delivery to them it doesn’t seem fair.[new_line] A poor and mismanaged cash flow is a disaster for any business. When you run out of cash, you can’t pay your suppliers or your staff and you have to borrow money. This can be an expensive option.[new_line] Instead of getting bitter and twisted about it, not to mention extremely worried, use this system to manage your cash flow and start to feel in control of your debtors.[new_line] 1. Create an Invoice Due Date:[new_line] Put it on your invoice. Maybe its 14 days, or 30 days, it is up to you. But you need to decide and then place it clearly on your invoice.[new_line] 2. Set yourself three reminders in your calendar:[new_line] i) 2 days before it is due ii) the due date iii) 5 days after the due date [new_line] 3. Use the reminders like this:[new_line] i) 2 days before hand – check if it has been paid[new_line] If it has – great! If not, send them a reminder that the invoice is due on ‘x’ date, and that you are looking forward to their prompt payment.[new_line] ii) On the due date – check again if it has been paid[new_line] Fab if it has, you might even want to thank them. If it hasn’t been paid send them an email reminder requesting payment within 5 days.[new_line] iii) 5 days after the due date – check again[new_line]...
Are you one of the 68%? Thrive! TV Tips

Are you one of the 68%? Thrive! TV Tips

Are you one of the 68% of women who are making less in their bushiness than when they had a job? Yep, last year I did some research amongst corporate crossovers and I discovered that 68% of them are making less in their new business than in their last job… 68%. I think this is a crying shame and it is my mission in Corporate Crossovers to bring this number down. So why is it so high? And how can you be sure not to be in the mix?   Your Action: Firstly, set goals for your business. If you don’t have a financial target for your business, you will never reach it. That may sound obvious but so many business owners I meet don’t have financial targets and so they are just glad to cover their expenses and get by. Then, track your income every day! Look at how much money you have made each day versus your monthly target. I do this and I credit it with being the key factor to doubling my business revenue in one year. Why did it work? Every day, I look at my financial goals and then think about how much I have earned. I compare the two and it motivates me to keep selling and focus on the numbers. This simple little task takes 2 or 3 minutes at the end of the day and you will start to feel empowered and proud of the income you generate each day. And I know, that over time, with that level of focus on your financial goal, you will reach it.  ...
Phobic About Finance? Thrive! TV Tips

Phobic About Finance? Thrive! TV Tips

Do your numbers scare you? Are you phobic about finance? Could you tell me how much your business earned last month, last week or even last year? If you are only looking at your business finances at tax time, you are not running a business but you are running an expensive hobby. The more we know about the numbers in the business, the more we understand about it. I know that the thought of getting out the bank statements and checking them against invoices and receipts can seem like a terrible job, but if you are to know the health of your business it is essential. Hiding away form the numbers will probably leave you feeling worse about your business than you need to. I know from the experience of my clients, that they often think their financial situation is much worse than it really is. So you need to embrace the numbers and do it frequently. Leaving it all to tax time means you are already out of date by the time you get them.   Your Action: Here are some easy steps to take to get up to date with your numbers: Block out an afternoon in your diary Gather all of your bank statements and receipts On a big piece of paper or a spreadsheet, enter all of the money that came in each month. Add that up, as that is your income. Then underneath that all of your receipts, debit card and credit card bills and put those in each month – that is your expenses. Simply take away the expenses from your income, and...
The Relationship Between Massages And Money – Thrive! TV Tips

The Relationship Between Massages And Money – Thrive! TV Tips

When did you last have a massage, or a manicure or do something to really pamper yourself? Cast your mind back to when you took some time out for pampering. How did you feel after the experience? Chances are you felt special, re-energized and rejuvenated. You probably felt like you could smile more easily, relax a little more and that the world was a much better place. How do you think that state of being impacted your customers and your prospects? Was it easier for you to have sales conversations, to do your work or to be more magical at networking events? We are our business. How we feel about ourselves and our lives is reflected in how we do our work. If you are feeling exhausted, sad or resentful it will seep into your work. Your clients and potential customers will feel it. Imagine how that will impact sales. I always think there is a direct correlation between how well I look after myself and my sales success.   Your Action: Plan something in the next week to relax, rejuvenate and get your passion back for your business. Your sales figures will thank you for it! Would you like a weekly burst of momentum delivered straight into your in box? Simply click on the button below, we’ll send you the latest tip each week! Sign me up for weekly Thrive!...
In The Doldrums With Your Business? Thrive! TV Tips

In The Doldrums With Your Business? Thrive! TV Tips

Do you feel a bit deflated and in the doldrums about your business? Have you lost that original shine of why you started the business in the first place? Chances are you have lost sight of where you want to take your business and you feel stuck, lack luster, that your hard work is making NO difference and you are having no impact. The simplest way to get your mojo back is to reconnect with the future success of your business. Imagine your business is as successful as you want it to be – wouldn’t you be excited about it then? Wouldn’t it make the hard work worth it? It sounds easy to talk about it, but I know from my own experience when you are in the doldrums it’s hard to feel the love! So if you want to reconnect and start to fall in love with your business again, try these 3 simple steps: Create a vision board – a beautiful vision board that is evocative with lots of yummy images on it that represents how you want your business to be in 5 years. Create a set of goals –that will bring you closer to the vision in the next 12 months. Look at your vision board and goals – do this EVERY DAY. Looking at your board everyday will reinforce the big reason why you are doing this business, and then give you some tangible goals to go after. You will remember why you are doing it and engage with the impact you want to make in the world. Your Action:   Vision board 3...
Do You Squirm When You Mention Price? Thrive! TV Tips

Do You Squirm When You Mention Price? Thrive! TV Tips

Be honest, when you mention price to a prospect over the phone or face to face, do you squirm inside? You know what I mean – you hesitate, look down and say gently, your asking price. Inside you are squirming! And you are thinking, ‘Oh maybe I should have made it less, maybe it’s too much and they’ll say no.’ And then, because the squirming is SO bad inside, you offer to discount even before they have had a chance to respond. Or you offer payment plans… or worse, offer to do it for free. When I started coaching 10 years ago, that was my approach… ugh! If this sounds like you, you need to be more confident in your pricing strategy and truly understand and own your value. Here are 3 key steps to help you leave the squirming behind: Market research – Is your price set at the right level? Check out the competition and what your prospects will pay. You deserve it – Write a list of 20 (yes 20) reasons why you deserve to be paid that much… experience, training, clients etc, etc. Know your value – It is imperative that you know and totally believe in the value that your offering gives your customers. When you believe they will as well. Write a list of the 20 ways in which customers benefit from working with you.   Your Action:   Stop squirming and embrace your value! Take the time to complete the 3 steps – market research, why you deserve it and know your value. Write it all down and then review your price....
Guest Post: Free Tele-Summit ‘Is Your Website Legal?’

Guest Post: Free Tele-Summit ‘Is Your Website Legal?’

You have had the amazing idea for your business, splashed out a small fortune on a shiny new website or simply spent hours yourself creating it. The website is now open to the world, but is it legal? Did you even know that it had to be legal?  The answer is a big YES!! There are serious fines and implications if you do not comply with certain laws and have some key information on your website and stationery. This is regardless of whether you sell or not. For instance, if your website is not legal, you risk: Up to £500,000 fine and possible imprisonment for data protection offences A so-called “Stop Now Order” from The Office of Fair Trading and other enforcement agencies which as the name suggests, means stop business, NOW!  Stop NOW!! Copyright Brian Snelson Being asked by the courts to publish corrective statements to eliminate the continuing effects of past infringements. Bad publicity for your business as many punishments are broadcast on the enforcement agencies’ websites None of this is good for business and absolutely gutting when you have put so much time and effort into your website and all in good faith too. Most website developers are not aware of these laws either. Lest you break out in a cold sweat, fear not as I will be revealing exactly what you need to be legal and how to do it as part of a special FREE tele-summit for entrepreneurs hosted by Wendy Kerr of Corporate Crossovers on 17th Sept 2013 at 1pm. You simply register and then sit back and listen to the interviews from the comfort of your own office! There...
Learn To Love The Numbers In Your Business – Thrive! TV Tips

Learn To Love The Numbers In Your Business – Thrive! TV Tips

  So many business owners I meet say ‘I hate the number’,  ‘I hate looking at my financials’ – ‘I would rather have root canal than create a profit and loss statement’. If you are running a business and you don’t review your numbers weekly, then you are not running a business, it is an expensive hobby. You must get knowledge of how your business is tracking, how much money you are bringing in, what you are spending and how much is left over. You also need to consider what your sales pipeline is – how much more money can I expect to make in the next month, the next 6 months. Getting into the detail will empower you and allow you to make better decisions. Your Action: Get the numbers out. Find your invoices, your receipts and start to bring them together and calculate how much you are really making. Or if you use a book keeper, ask them to provide you with the numbers and have a call with them, so they can take you through it. Would you like a weekly burst of momentum delivered straight into your in box? Simply click on the button below, we’ll send you the latest tip each week! Sign me up for weekly Thrive!...
Thinking Of Leaving Your Job? Are You Financially Ready? Thrive! TV Tips

Thinking Of Leaving Your Job? Are You Financially Ready? Thrive! TV Tips

  Are you fed up with your job and you have a great business idea that you want to take to the world? Before you hand in your notice and start up, it is essential that you have a cushion of savings in the bank. If you have a safety net of savings, and your business revenue does take a little longer to happen that you planned, then you will have the confidence to know that you can continue working on your business and not have that stress and worry about money. Your Action: Take some time now and do a budget of your living expenses. How much do you spend each month? Calculate how much money you need to last comfortable for 8 months and start saving. Having this financial cushion will give you the confidence to leave and take away any potential financial worries as you start your new business. Simply click on the button below, we’ll send you the latest tip each week! Sign me up for weekly Thrive!...
Thrive! TV Tip ~ Are you worth more?

Thrive! TV Tip ~ Are you worth more?

  How often have you wondered “what would it be like if I charged more?” [new_line] What if I commanded a fabulous premium on my services? [new_line] Do you know, the only thing that stops us from doing that is us! Mmmm, it is our own thinking that stops us from creating the super-duper dream package that would enable us to finally get paid what we are worth.[new_line] Imagine if you had that package and your customer started buying it – what difference would that make for you? [new_line] Your Action: I want you to create a super-duper dream package or product. [new_line]Think about this – if you had a dream customer, who appreciated the value of what you sold and really needed it, what could you create to delight them? To really over deliver? [new_line]Think about all the detail that would go into this package…and then what would you charge??? [new_line]Go on – do this – just by imagining this and writing something down will give you new ideas. And then – just to stretch you a bit more –I want you to launch it![new_line] Would you like a weekly burst of momentum delivered straight into your in box? Simply click on the button below, we’ll send you the latest tip each week! Sign me up for weekly Thrive!...
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