We are all aware of the efforts involved in starting a business, securing a business location, furnishing it, staffing, marketing it, needless to say this is a huge capital investment. Once your business is “up and running” there are signs of business failure you must watch out for and avoid at all costs. Here are some of the early financial problems that are the main contributor to business failure, If you see these danger signs in your business, you need to act on them immediately.
Business failure due to high debt ratio
A sure sign of business failure and major cause of trouble is usually a high debt ratio. If you are extending too much credit to customers, or allowing extensions on payments due you could be putting your business at risk. You must be sure your debtors pay their debts on time. If you have to use working capital to pay your business debts, then your business is at risk. You must be able to control the cash flow of account receivables. Remember, you have accounts payable.
Dwindling working capital
Another cause of business failures you must watch out for is depreciating working capital. This can be the result of unnecessary expenses, too much inventory and poor cash flow management. This can be due to a high debt ratio. This will lead to a negative cash flow. Cash flow to a business is what blood is to humans. No business can survive without strong cash flow management.
Business failure due to declining Profit
Declining Profit, if not handled properly can cause business failure. Sometimes a down turn in profit margins can put your business in the red faster than you can recover. A sure way to avoid this problem is to make sure you are focused on increasing sales volume while you keep operating expenses low.
Inability to secure operational capital is another sign of business failure
If for any reason your business is unable to secure funds from financial institutions you may be heading to business failure. By avoiding the problems of high debt ratio, dwindling working capital, declining profit margins and control of daily operating expense, your business should be fine. Remember, keep the focus on sales volume, grow, grow, and grow. Success is based on the ability to generate revenue.
One of the biggest hurdles for most start-ups is having enough capital to keep the business running. Starting a business is expensive; office equipment, enough resources to support taking on or landing additional clients, marketing material to get better exposure, and the list goes on. Below are some methods that may be of some help when considering start-up funding.
Self-funding – When possible, this is the ideal method to fund your business. Most importantly, it doesn’t require you to give up any control in your company.
Friends and Family – If possible, tap into your inner circle before considering speaking with an investor. If you can land a no interest loan from your uncle, then go for it. Of course there’s always the chance of your relationship becoming a bit uncomfortable.
Small Business Grant – Tough to land but always worth a shot. Securing these types of funds can often be quite intense and require a lot of effort.
Lines of Credit – Not exactly easy to achieve for a young company but give it a shot. One thing to keep in mind is that Commercial banks are often reluctant to lend to start-ups unless personal collateral is at risk. I personally wouldn’t recommend putting your house on the line, but it’s always an option.
Angel Investors – Angel networks can come in handy for the right type of company. Most importantly, find angels who have a good understanding of the industry that you’re in and make sure that you do a good job of displaying your passion.
Above all, cost is the number one factor when considering taking on Virtual Office Space. These virtual solutions are basically turn-key as well and offer many advantages for all types of businesses. Whether you’re looking to add a presence in an attractive city to gain market share or you’re just starting up and want to test the waters, sought to speak, a virtual office will provide you with the quickest solution to do so.
Over the last couple of years, new capabilities and technological advances have aided in the wide-spread acceptance of Virtual Offices. Business can now be conducted in a whole new manner. The biggest obstacle in the past was communication. Both, the internet as well as telecommunications have now reached a level in which real-time communication can be done in so many ways. With collaboration software such as BaseCamp or video chat services such as Skype and GoToMeeting, there’s nothing that can’t be accomplished remotely, except for an actual handshake, of course. Continue reading “The Ultimate Virtual Office in Boca Raton”
The workplace has greatly changed. It’s almost hard to recognize it from what it was just a few years ago. With so many people starting their own small businesses, or choosing to work from mobile locations, it appears like there is no longer any need for the traditional workplace. People are now beginning to lean more towards virtual offices for startups.
There are several challenges that come with providing motivation for employees who all work in the same building. When you have a base of employees who work from home, it becomes a unique challenge because of the lack of face-to-face interactions. The challenge is to reduce the barrier between you and your remote employees, which will help to keep them engaged and productive. Here are a few pointers to follow to get you in the right direction.
If you are a business considering outsourcing some of your talent to work-at-home professionals, you are on the right track. Many businesses today (even large corporations) have moved to this model, for a number of reasons.
Many startups grapple with the challenge of high operational costs. Unfortunately, this is usually the time they aren’t making much profit, if any from their venture. A virtual office can be of great benefit to many start-ups as it would help the company cut down on its overhead costs dramatically. Continue reading “How Startups Can Benefit from a Virtual Office”
Each day as you get accustomed to your work, you realize that you need to do more in a day. Unfortunately, this is not always the case as there are distractions that hinder your productivity every day. These are eight easy ways to overcome this.
Setting a professional tone as a good worker in the office takes mostly common sense. But, there are times we all need a refresher on some basic things we might not consider when all our attention is on our tasks to do. Let’s dive in and take a close look at seven ways to carry out proper business etiquette.