Welcome to our latest blog. Christmas is around the corner and it’s our favourite time of the year here at Cross Accounting. It’s the time of giving and is there any other way to give your business a boost a grant to get your finance in place.

A business or an individual will be given a sum of money for a specific project or purpose. A grant usually covers only partial costs involved. Grants are given depending on your business activity, the amount of jobs that will be created due to this investment or if you are in a specific industry sector. Sometimes grants are linked to geographic areas. Such as those areas in need of an economic transformation.

Business Wales can support in finance, take a look at their finance locator to see if grants and other finance your business may be eligible for at https://businesswales.gov.wales/zones/business-finance/funding-search-tool-form

You should ensure that you meet the requirements of the scheme before applying for grants and finance. You’ll have to ensure you are ready to put up some of your own money as grants only cover partial costs. You’ll also need to have a detailed description of your project or purpose and a work plan with full costings. We can assist with a budget and full detailed cashflow to secure the finance you need.

The application process for grants can sometimes be time consuming and there usually is a lot of competition but on the plus side, most grants don’t have to be paid repaid giving your business that extra boost.

If you’re looking for that push to reach some New Years goals, the Development Bank of Wales can support to get the finance your business needs to succeed. Visit https://developmentbank.wales/ to get you ready for the New Year.

You will need to have a polished business plan at the ready.  If you would like us to look at your business plan, then you can book in for a free one-hour consultation where we can discuss how to start the New Year strong. Visit our website on www.crossaccountingservice.co.uk or call us on 02920 653 995. We wish you all a Merry Christmas and a prosperous New Year.

How Graphs Can Be Used For Your Business

Graphs can be used by Financial and Non Financial managers in a variety of ways.

Sales

Sales Managers have targets that are set for them by the company they work for.  They can track their sales in a variety of ways.

Our example shows Sales split by category/or segment and shown against budget. Targets that were set at the beginning of the year.

This graph also tells you the most popular and productive products on sale.
You can take this further and look at the margins of each product category, you might not sell a lot of something but if it returns a higher margin/profit rate, you don’t have to sell as many to get the same profit figures. There may also be seasonality in that product line.

Ie in hot weather a newsagent may sell a lot more drinks than bars of chocolate.
In cold weather the icecream freezer might go untouched. Easter, Half Term, Christmas. You would tailor your sales targets to match demand.

Apply this method to your particular product line.

 

Cashflow

You might want to set yourself a target bank balance for you to meet your overheads and make a profit.

The graph will show against budget whether you are meeting that goal.

It also gives indication of the business behaviour, see our example the graph shows above the line at first, then dips over February to April then comes back up.  Back into the target position and above.

If the graph had shown erratic it would give an indication of how well the manager is managing the business. In a planned approach, or finger in the air approach.

Gross Profit

This is a key figure in your accounts, it indicates whether you have made enough sales to now cover your overheads and make a profit.

Our graph shows a rise and then a sharp dip in May, this could be down to several factors.  The Sales themselves were generally low that month, an error in charging the right selling price for a new product line, an operational issue.

If you see a dip in any of these things, look for the reason, if easily explained, you could be putting action in to put yourself back on track.  Also look out for high peaks, these should be explainable.  ie a new contract, timing issues, seasonality, or it could be an error.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own.  It is not intended to be used to make all of your business decisions but as a guide only.

You might think this is an odd article for an accountant to put together. But in fact its very relevant as without marketing your business there are either no or limited sales in your business, which will have a financial impact on your future.

As part of our development of our own company I have been spending time with marketing experts, and reading up on marketing techniques to build up knowledge of this very tricky area of business.

Im sure that an expert on marketing will also have more to say about the subject than I am covering, but thought I would share some of the marketing tips that have helped us develop.

Point 1

The Mission Statement

This is basically your reason for being in business in the first place. This is about goal setting. If you want to be the biggest social enterprise in the country, then put it in your mission.

Ours is ‘Supporting Your Business Growth’

We not only prepare financial accounts, we also work with a number of businesses in developing their companies into businesses that sustain active growth.

What is your mission?

Point 2

What Business Am I In?

If you don’t know what you do, it’s going to be difficult to tell anybody else about your amazing idea.

Think about this very carefully put together a 30 second spoken script to point out the benefits of someone buying from you.

Unique Selling Point, why are you different, why should I buy from you?

You are now a walking talking advert for your business everything you do from now on with have an impact on it.

Point 3

Who Is My Target Market?

Whenever a business first starts up, there is always the impression that the services or product will suit everybody. Unfortunately quite often that is not the case. You need to tailor your marketing to that chosen market, to enable you to sell better to them. You will need to do market research, feedback forms can help with this. By asking your customers questions about what you’re doing you can develop this further.

Point 4

What Is Marketing Budget?

The majority of businesses have a very limited budget for marketing and have to do a lot of leg work themselves, and choose as much free marketing as possible.

Examples of marketing possibilities

Door to door

Leaflets

Brochures

Networking

Website

Sign writing a vehicle

Paid advertising online (pay per click)

Magazines

Newspapers

Referral Schemes

Social Media

Whatever your chosen marketing strategy, there is not one thing that will be enough to market your business you will need to spend a great deal of time doing a variety of any of the above. There is no quick answer to this as everything takes time to develop, marketing is no exception.

Point 5

Self Sacrifice

With anything you want to develop and grow there is a point when you need to nurture. Certainly if you have a limited marketing budget, there is a real possibility that in order to grow your business you will need to sacrifice salary to increase your marketing budget, and allow your business to develop into something much bigger than if you had left things as they were. This may need to be done from time to time too, every business runs in stages, and when you reach your limits to that stage, you have to feed it again with investment.

Point 6

How Do I Manage Working And Marketing?

You’ve now got your customer base but it’s not quite enough to make a living, or you’re looking to grow the business, but time is of limited availability now. As a business owner you need to be putting in a minimum of 30% of your time to marketing and looking for the next prospect. The risk of not doing so means that when you have done the work directly in front of you, and you will then see gaps in your diary, or cashflow, which then with limited time needs to be filled quickly, or you’re on stop.

If you have employees, then you need to be delegating their time to working and you need to concentrate as much as possible to marketing your business. I am never without my business cards, as conversations can happen in the oddest circumstances. Pass your cards to friends and family who’s to say they can’t do a little promoting on your behalf too. Consider outsourcing. We use a company for our marketing strategy and our website, they have proved to be imperative to our business development and have also freed up my time immensely.

Point 7

Tracking Leads And Conversions

As soon as you start marketing your business you need to know where every lead is coming from, and to also track your percentage sales conversions from those initial leads. Your marketing budget is very precious so don’t waste it by not tracking, and making sure that your money is spent on advertising that works.

Point 8

Have Fun

Marketing is not a chore have fun with it, let your customers see your personality.

As the saying goes ‘People Buy From People’. So let them see who you really are, it might surprise you and take you to where you want to be.

Happy Marketing!!

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.