Wired Sussex Breakfast Session - 29 September
10th October 2016
An excellent turnout for the Wired Sussex Breakfast sessions at the Fusebox on 29th September.
Jamie Young of Plus Accounting and Emma Bland from Wired Sussex shared their insights on cashflow forecasting, chasing debts, and managing the funding gap for early stage and start-up businesses.
The importance of realistic forecasting both for raising finance and assessing any future cashflow shortages, we discussed how to mitigate cashflow, accelerate money in to fund early stage growth and methods of raising finance without necessarily giving up equity.
- Possibly register for VAT earlier than you are legally required to, your business can benefit from an additional 20% inflow in cash in early part of the VAT quarter, although bear in mind VAT needs to be paid after quarter end.
- Consider applying for VAT Flat Rate Scheme – businesses can benefit monetarily from this both in reduced VAT liability and reduced administration.
- Approach banks and other lenders for overdrafts/loans in advance of your requirement – demonstrates you have control of and understand your business.
- Identify your funding requirement first preparing financial profit & loss forecast and then build the cashflow forecast from that. Make sure you model a number of scenarios.
- Consider overdraft, loan and invoice discounting/factoring.
- Concentrate on higher gross margin products and services if you can – these will generate more cash
- Chase your debtors – make sure you speak to them on a regular basis rather than just relying on emails and reminders.
- Before you start out on setting up your business make sure you have savings that you can live on for at least a 3-6 month period depending how soon you realistically expect revenues to flow.
- Minimise overheads as far as possible – strip out all unnecessary costs
If you want to discuss any of the matters above in more detail, please contact Jamie Young on firstname.lastname@example.org or 01273 701200.Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.