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If you are operating a business with a lack of cash flow, chances are there is money to be found if you know where to look for it. Many SMEs just aren’t aware of all the options available to them when it comes to finance and funding and this is exactly why so many are faced with insolvency. Instead of continuing on your current path, take a few moments to explore ways in which it is possible to obtain that extra influx of cash to meet your day to day expenses. This brief guide to finance and funding for your business in 2013 should help you see that cash flow doesn’t need to be a problem. You simply need to understand what is out there and how to go about cashing in on it.

Factoring and Invoice Discounting

By far the most common method of obtaining funding in today’s economy is factoring and invoice discounting. This is quite popular amongst small businesses because a loan is made to the company based on outstanding accounts receivable. The factor or discounter will take a look at your books to see exactly what is owed to your company and will lend an amount up to 85% of what is outstanding. Bear in mind that these must be B2B accounts (business to business) and not a ledger full of outstanding invoices to the general public. In factoring the lender will take over your accounts and collect payments where is in invoice discounting the business maintains control of their books.

Trade Finance

Although trade finance is not optimal for all businesses, it can be a viable solution for those companies that meet certain criteria. For example, sometimes a trade financier will lend money over a short period of time to a business that has a solid history of meeting orders and the profit margin is relatively high. Perhaps there is not enough money to meet the current order so the lender is willing to make an advance against expected profit once the order is filled. Usually trade finance is sought when there is a lack of more conventional loans because of the current credit crunch where banks are holding tighter reins when lending.

Asset or Equity Finance

When a company is in need of a quick loan, asset or equity finance can be the ideal solution. Sometimes there is a slump in business due to unusual circumstances. Seasonal demand may be low or there could be other reasons why products are not moving at the moment. A lender will sometimes make a loan based on the value of merchandise ready to be sold. It should be noted that this particular type of financing is contingent upon the lender’s ability to see value in your products. This would not be a loan for the service industry as there has to be some tangible (equitable) goods to guarantee or secure the loan.

Business Angels

In recent years, business angels have become prominent in the world of finance. A great number of investors are out there looking for somewhere safer than the markets to place their investment capital. These are usually private individuals looking for a good return on their money who are willing to invest in viable businesses. They can be thought of as a type of silent partner in that they are usually not made directors of the company, but they inject much needed capital to keep the business trading. It will take a solid business model and proof that the company has the potential to show a profit, but there are an astounding number of investors out there willing to take a risk.

Government Grants

Depending on the industry, there are also government grants available which are intended to help stabilise and grow the economy. Certain industries are more apt to qualify for government grants such as construction and building enterprises. A good financial adviser will be able to help struggling businesses research grants available to them and this is money which may or may not need to be repaid. Often there is very low interest on those loans needing repayment so if you qualify this may be worth your time and effort to investigate.

Some Final Thoughts on Finances

Rather than struggling from day to day waiting for that first creditor to petition a winding up order, take the initiative to find finance and/or funding. If there simply seems to be no way to qualify for a loan, talk to an Insolvency Practitioner about keeping creditors at bay with a Company Voluntary Arrangement. No, this is not a loan but it may enable you to pay pennies on the pound towards outstanding debt. It is not the same thing as bringing in a quick influx of cash but it would certainly reduce your monthly repayments which in turn would free up money for day to day expenses. You can survive the current credit crunch so don’t give up just yet.

Time management: not just fancy corporate speak, but actually a very important part of life, especially if you are setting up your own business or working for yourself. Your job can be easier. Achieving the perfect balance between your work and personal life is also possible. Time management has nothing to do with working harder. Concentrate on working smarter.

Reward yourself for hitting deadlines. Setting yourself goals and deadlines is one great way to manage your time effectively. When you achieve your deadlines, reward yourself with a pat on the back. When you achieve your goals, reward yourself with something more tangible! It may be a massage, a day off, or a round of golf. As long as it is something you enjoy, it will motivate you to work smarter and manage your time.

Do what needs to be done. The Macquarie Dictionary definition of important reads “of much significance or consequence”. The definition of urgent is “pressing, compelling, or requiring immediate attention.” Every night when you leave your office, write down your ‘to do list’ for the next three days. Identify which tasks are urgent, which are important and then work from there. Then each morning, review this list and check you are on track. As new things crop up, you need to asses them the same way and decide where in your list they slot into.

Paperwork and emails: Both are necessary parts of running a business but can also be substantial time wasters. Don’t double handle paperwork or emails. If you open an email, then action it right away. If you open the mail, do something with it. Even if this is just red flagging it for later, it saves you having to go back time and time again.

The 10% rule: When planning your week, allocate 10% of your time to deal with unexpected issues or work requests. Often, it is the stress of too much work, or running out of time to meet a deadline that can cause the most worry and can actually waste time as you fret. Being flexible with your time allows for better time management.

Know yourself: Identify your best and worst working conditions. Do you work best in the morning or the afternoon? Do you prefer background noise or silence? Are you a reflector or a quick decision maker? If you can plan your day, and know when you are more likely to get work done, and when it’s better for you to take a break, then you can become a great deal more productive, and you will also spend less time procrastinating.

With a few simple strategies you can take control of your time and reap the rewards. Good luck!

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5 Tips for Building a Thriving Business

Listen carefully to these business tips to get off to a great start. You can always learn from the mistakes of others when building your business. Although the road may be long, your journey doesn’t have to be in vain. Use these five business tips to help you build a thriving organization.

Business Tips #1: Be Knowledgeable About Your Competitors.

Your idea of competition may only center on those creating or selling the same products and services as you. However, this is not the case. You may have competitors in the same niche, but their target audience may differ from yours. As an example, there are two internet marketers producing ebooks, membership sites, and niche websites. One internet marketer focuses on WordPress, while the other focuses on Clickbank. Although they’re both in the internet marketing arena, their target audience is geared toward WordPress users and Clickbank users respectively. As you can see from this scenario, your competitors do not necessarily perform the same things as you. Your competitors are those in the same market who are seeking out the same target audience. The products and services may be the same or different.

Business Tips #2: Protect Your Idea.

The most valuable assets of a company is its intellectual property. You can patent an idea, process, or invention. If you have a particular name or mark you’d like to use on your goods and services, you can obtain a trademark. For original works of authorship such as dramatic, artistic, literary and musical works, you can seek copyright protection. Each form of protection provides you with a legal monopoly on that particular idea. In cases where you’ll unable to legally protect your idea, make sure that discussions about the concept are carried out with those who have signed a nondisclosure agreement.

Business Tips #3: Motivate Your Employees. This is one of the business tips that will save you a lot of time, hassle, and frustration in the long run. Presenting yourself as an authority figure only opens up room for resentment between you and your employees. Although your intention is not to come across as a pushover, the key in such relationships lies in being smart and showcasing your ability to build a successful company. During meetings make the company the focal point rather than yourself. Using the company in the forefront will help employees feel a sense of belonging and a desire to seek the company’s best interest. Besides ensuring that your employees are strategically aligned with your company’s goals, it is equally important to provide incentives when the company has achieved a particular goal.

Business Tips #4: Hire like-minded Individuals For Your Business. When starting a business, you may have a strong inclination to include family and friends on your staff. Although there are family-owned businesses that are thriving under such close-knit conditions, this business approach may prove detrimental to your company’s growth as time passes. Establishing boundaries between the family/friend relationship and the business relationship may prove futile. Furthermore, your business perspective may constantly conflict with that of your family member or friend. These actions will eventually corrode your ability to build a successful business and cause you to destroy a friendship or close-knit family.

Business Tips #5: Plan For The Future. Whether your business is in its rudimentary or advanced phase, developing a plan for the future is an important aspect of your business. If you plan on retiring, does this mean your business will fold as you exit your position? You may desire to keep the business in the family. Therefore, you should make the necessary arrangements to leave your desired family member in charge of those affairs. Does your company have insurance? Obtain life insurance, disability insurance, and long term care insurance to cover your needs as well as those of your employees.

With the consistent implementation of these business tips, you can have a thriving business in no time.