At the early stages of your start-up journey, access to credit can be a lifesaver.

Cashflow is tight, customer revenue can fluctuate wildly, and large-scale bank loans and external funding may be in short supply. In this situation it might seem counterproductive to apply for a business credit card – a move that adds to your debt level.

But, in fact, applying for a company credit card and using that credit facility responsibly can have a hugely positive effect on your ability to fund your growth and access lines of credit.

Let’s explore five ways that a business credit card can improve your funding

1. Builds up your business credit profile

When you use a business credit card responsibly, and pay off the repayments each month, this starts to build up a credit history for the company. This credit profile is directly linked to your business and is separate from your own personal credit.

Having this credit history (and the associated business credit score) is crucial when applying for business loans and accessing future, large credit lines.

2. Establishes you as a responsible borrower

Paying your credit card bill on time each month demonstrates your financial discipline and an ability to manage debt in a responsible way.

When applying for loans, bank overdrafts and trade credit, lenders want to know that you’re a low-risk business to lend to. Responsible payment behavior acts as an indicator of trustworthiness for future borrowing and will increase your chances of successful funding.

3. Provides a flexible line of credit

Having a business credit card makes it easier to cover your expenses and overheads.

A credit card gives you flexible, accessible funds for your day-to-day operational needs. It’s also an excellent way to cover any unexpected expenses or cashflow gaps. Managing this line of credit also prepares you for larger, more formal, credit facilities.

4. Demonstrates a prudent use of credit

Your credit utilization rate is a key metric that credit reporting agencies will be interested in.

By not maxing out the available credit on your credit card, and keeping utilization low, you can show that your business manages debt in a sensible way. This marks you out as a low-risk borrower – a key factor in accessing further credit, business finance and investment.

5. Acts as a gateway to more favorable terms

By being responsible with your credit use, you set the foundations for a business credit profile.

A solid track record with a business credit card may lead to pre-approved offers for larger credit lines, better interest rates and more flexible terms from banks. This is incredibly helpful as you scale the business and need additional funding to drive your growth journey.

If your startup needs an increased cash runway and improved access to credit, applying for a business credit card is an excellent way to improve your financial flexibility.

Come and talk to the team about ways to embrace this kind of credit.

The following content was originally published by BOMA. We have updated some of this article for our readers.

The new financial year is a new beginning.

As a business owner this a great time for you to reflect on where you are at and think about your business goals for the financial year ahead.

Setting goals is an essential part of personal and professional growth. These could be lofty goals or even setting out a plan to achieve some more mundane (but equally important) projects. Whether that is getting paid faster, reassessing expenses or bigger things like automation of processes and new markets. You may be looking to expand your business or create more time for yourself.

Having a clear vision and actionable goals can help you achieve your long-term plans. Here are some tips to get you started:

1. Envision your future: Reflect on what you truly want from your life and how your business can help you achieve those aspirations. Consider where you want your business to be in the next five or ten years. Having a clear endpoint in mind will make it easier to set goals that align with your vision.
2. Set measurable goals: Vague goals can be challenging to track and evaluate. Instead, focus on setting goals that are measurable. Think about the key metrics you already monitor in your business and how you would like to see them improve. For example, aim for a 3% increase in net profit year-on-year, a 2% reduction in expenses, or acquiring two new customers per month or grow your prospect database by 50%. If you set specific targets, you can easily track your progress and make adjustments as needed.
3. Develop a plan for each goal: Once you have identified your goals, it’s crucial to create a plan of action to achieve them. This can be as simple as jotting down your ideas or engaging in a brainstorming session with your team or advisors. Having a well-defined plan in place will help you stay focused and motivated to follow through.
4. Monitor your progress regularly: It’s essential to regularly check in on your progress towards your goals. Set reminders on your calendar or align your monitoring process with your invoicing cycle. By consistently evaluating your progress, you can identify any areas that need improvement or come up with fresh ideas to help you reach your targets.
5. Celebrate your achievements: Celebrating milestones along the way is crucial for maintaining motivation and momentum. Plan a reward for yourself when you achieve a significant goal. It could be treating the team to a morning tea, having a day out of the office together or planning an event for the end of the year. Choose something that brings you joy without breaking the bank.

Not sure how to get started?

We can help you with the strategy and identifying the information you’ll need to track, so you can monitor your progress.

Setting goals is just the first step. By implementing these tips and staying committed to your vision, you can turn your long-term plans into reality.

The following content was originally published by BOMA. We have updated some of this article for our readers.

As the owner of the business, you’ve set your company up so it delivers on your own personal goals.

But you also want the business to deliver for the people you hand the business on to – whether that’s your kids, your management team, or a brand-new buyer.

Let’s take a look at how you pass the business on to the next generation, and the key steps to plan for, consider and get in place before you exit the company.

Getting the business ready to hand over

When you pass the business to your successor, you’ll want to do so with the company in the best possible shape. No successor is going to want to take on a failing business that has operational issues and little or no future in the current market.

Here are five steps to action before your planned exit date:

1. Start adding value to the business:

A big part of getting ready is about optimising the business so it’s a viable and profitable enterprise to hand on. Adding value to the business is key to creating a business you’re proud to hand over to the next generation – but it takes time and plenty of planning.

Invest in new systems, machinery and property, so the business is efficient, productive and able to remain competitive. Do the same with your human talent by hiring in the best people and making sure you have a team that’s ready to take over the reins.

2. Develop a succession plan:

Choose your successor(s) well in advance, whether it’s a family member, someone from your top team or a new, external hire. And put together a detailed succession plan.

Mentor your successor and provide training and development to get them up to speed with your strategy, internal processes and overall brand. Set a timeline for transitioning your leadership and operational responsibilities over in as smooth a way as possible.

3. Formalise your valuation and deal structure:

It’s a good idea to get an independent business valuation early on. This helps you set a fair price for the company and start the wheels in motion for the sale of the business.

Work with a broker or a mergers & acquisitions adviser to define the deal structure, whether it’s a gradual sale, staged payments, or gifting the company to your successor. Being clear about the deal helps keep all parties happy and limits any issues further down the line.

4. Address any legal and tax implications:

You’ll need to engage both legal and financial advisers to help you navigate the more complex areas of the deal, sale and handover.

Areas to consider will include reviewing wills, trusts, shareholder agreements, capital gains tax and inheritance tax. Proper planning at this stage helps both parties – you as the outgoing owner and the incoming generation – avoiding any potential disputes.

5. Plan for business readiness and continuity:

The business you hand on must be attractive to a buyer, or a viable business proposition for your incoming successor and their management team.

To keep the business trading smoothly, make sure you’ve documented all your key processes, listed your customers, and have maintained the company’s financial health. Clear up any legal issues or outstanding debts and be ready to hand over a business that has a profitable and competitive future in your chosen industry sector.

Talk to us about your exit strategy and succession plan

Getting ready to exit the business takes a lot of planning. Ideally, a five-year exit strategy is advisable, giving you time to plan, prepare, add value and choose a worthy successor.

Come and talk to the team about your exit strategy and succession plan.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Keeping on top of your cashflow is even more important during tough economic times.

With global uncertainty, recent high inflation, energy prices soaring, supply chain challenges, cash is likely to be tight over the coming year. Cloud technology and fintech apps, can give your business the best possible control over its cash.

Why is cashflow so important?

To keep your business operating, you need enough money coming into the business to cover your outgoings – with enough surplus cash to deliver a profit.

In recessionary periods consumers have less disposable income to spend on your products and services. Business customers will be looking to reign in their spending on suppliers. As a net result, your business is likely to make fewer sales and will bring in smaller revenues.

This means:

• • Reduced income coming into the business.
  • Less cash in the business to cover your operational expenses.
  • Not enough money in the bank to pay suppliers, utility providers or payroll costs.
  • In the worst-case scenario, insufficient cashflow for you to continue trading.

What can you do to improve your cashflow situation?

The more informed you are about your cash position, the more you can do to prepare for any cashflow gaps. It’s this foresight that can make all the difference when you’re battling against tough external economic forces and a downturn in sales.

If you want to safeguard your cashflow, these are some sensible steps to take:

• • Switch to cloud accounting – accounting and finance technology has moved on in leaps and bounds in the past decade. The best cloud accounting platforms all offer a detailed reporting of your cash position. These software tools will generally offer real-time data, giving you up to date cash numbers.
  • Integrate with cashflow forecasting apps – cloud accounting platforms let you add third party apps to create a custom app stack of helpful business tools. There are plenty of cashflow forecasting apps to choose from, giving you the ability to predict your future cashflow position.
  • Plan ahead for the cashflow gaps – when your forecast shows a shortfall of cash coming up, that’s the time to take evasive action. If you can see that there’s a cash hole approaching next month, it’s time to look at ways of raising extra finance to fill that hole. That could mean extending your bank overdraft, taking out a small business loan or taking out an invoice finance facility with a lender.
  • Look for opportunities to cut your overheads – one way to even up your cashflow is to cut down on your expenditure. If you can cut back on overheads, expenses and unnecessary costs, this can help you re-balance your cash position, even when cashflow is getting tight. Look for cheaper suppliers, buy in smaller quantities and take every opportunity to cut costs and keep your spending more sensible.
  • Update your prices and your sales strategy – raising your prices is one way to bring in more cash, with the same volume of sales. But it’s a balancing act. Putting your prices up can alienate existing customers and could see you losing customers, but if you can find the sweet spot for your pricing AND also drum up more sales, you can quickly increase revenue and give your cash inflows a healthy boost.
  • Review your cashflow reports regularly – it’s important to look at your cashflow numbers and reporting regularly, not just at period-end. This is particularly important when economic times are tough. With the most current cash information to hand, you can make informed business decisions and aim to keep the business operational.

Talk to us about updating your cashflow processes

With your business in a healthy cashflow position, you give yourself some solid financial foundations for riding out the global recession. No business is invulnerable in these conditions, but with liquid cash in the business, you have more flexibility and more capital to play with.

Book a meeting and let’s see how we can improve your cashflow processes.

The following content was originally published by BOMA. We have updated some of this article for our readers.

It’s a tough time to be in business.

And especially so if you’re a mature, established business that’s finding it hard to keep pace in the rapidly changing and evolving market.

As a mature owner, you have experience and knowledge on your side. But you’re also faced with the new realities of transformative AI technology, the threat of climate change and a global economy that’s increasingly unstable and unpredictable.

Why are these challenges so problematic? Let’s look at the potential impact.

A new business reality

When you started out, the business world was a more predictable beast to tame.

Technology was here to assist us, not replace us. Markets were more stable, and supply chains were reliable. Weather wasn’t a major factor in your business plan, or your insurance policy.

But that cozy existence has changed – and it’s making it much harder to do business.

That’s bad news if you’re aiming to:

• • Grow the business and increase sales revenue.
  • Sell the business and get a good return on your investment.
  • Hand the business to the next generation in good shape.

The challenges for mature businesses

Trading, when the world around you is changing, is difficult. It throws up some specific challenges that could have a major impact on the future of your business.

A) Staying competitive and efficient:

Cloud tech, automation and now artificial intelligence (AI) have changed the technological landscape. If you aren’t abreast of this technology, you can quickly lose your competitive edge.

B) Protecting your business:

Dangerous weather events, widespread flooding and the ongoing threat of the climate emergency are making it difficult to trade and protect your business.

C) Planning your strategy:

The business landscape is no longer stable. Global events can change the economic outlook and the validity of your strategy in a heartbeat, making it hard to plan.

Three ways to optimize your business in 2025

To overcome some of the potentially negative impacts, it’s important to remain agile.

Let’s look at three ways you can help to embrace the new reality.

1. Champion AI, automation and digital technology

Get on board with AI and digital tech. AI can either be your worst enemy or your biggest asset. Fall behind the technology curve and your competitors will overtake you. Embrace the best elements of AI and it could transform your operations and productivity.

When used well, and with a proper strategy behind it, AI has the potential to make your business more efficient and make it cheaper to run.

2. Focus on human skills and talent

Technology is brilliant for speeding up the running of your operations. But it’s also vital to recognize the contributions of key human skills and the talent of your team and workforce.

Your people are the face of the company and a large element in defining your brand. They’re the creative center, the ideas hub and the humanity that brings your business to life. Never underestimate the impact of real, genuine, human customer service.

3. Balance your use of AI and human skills

AI can help to run the business, but you also need a talented team driving the company.

The sweet spot is to balance these two different factors making sure you have human oversight over your AI. Maximize your use of AI, software automation and digital technologies, but also invest in people, raw talent and the capabilities that a human team brings to the table.

Talk to us about optimizing your business

If you’re feeling like the business landscape is speeding past you, leaving you trailing in the wake of technological, environmental, political and economic change, you’re not alone!

Many experienced business owners are feeling the same way – and have the same concerns around how they’ll be able to sell their business or pass it on to their successor.

Come and talk to the team and we’ll walk you through some simple, straightforward steps to help you change course, optimize your business and embrace the new reality.

The following content was originally published by BOMA. We have updated some of this article for our readers.