Finance your Business
We help you in improve your odds of business success by understanding your financing needs as well as the options that are available to help you start, manage and grow your business.
Estimating Start Up Costs.
If you are planning to start a business, it is critical to determine your budgetary needs.
Since every business is different, and has its own specific cash needs at different stages of
development, there is no universal method for estimating your startup costs. Some businesses can
be started on a smaller budget, while others may require considerable investment in inventory or
equipment. Additional considerations may include the cost to acquire or renovate a building or
the purchase of long-term equipment.
Our experts would guide you in all essential calculations to determine your budgetary need.
Using Personal Finances.
Learn How Your Personal Finances Can Affect Your Business Finances.
Starting a business can be a tremendous strain on your personal finances. It takes time before
your new venture turns a profit and provides financial support for you and your family. Before
starting a business, it is important to get your finances in order.
Our experts would assist you in all essential calculations to determine your personal finances.
Preparing Financial Statements.
Understanding financial statements is essential to the success of a small business. They can be
used as a roadmap to steer you in the right direction and help you avoid costly breakdowns.
Financial statements have a value that goes far beyond preparing tax returns or applying for
loans.
The balance sheet is a snapshot of your business financials. It includes assets, and
liabilities and net worth. The "bottom line" of a balance sheet must always include
(assets = liabilities + net worth). The individual elements of a balance sheet change from day
to day and reflect the activities of a business. Analyzing how the balance sheet changes over
time will reveal important financial information about a business. It can help you can monitor
your ability to collect revenues, manage your inventory, and assess your ability to satisfy
creditors and stockholders..
Our experts would guide you in preparation of balance sheet.
Developing a Cash Flow Analaysis.
For small businesses, cash is king. You need it to start, operate, and expand your operations,
but many small business owners often have trouble managing and maintaining cash. Inaccurate
cash flow analysis - or lack of available cash - can affect the everyday operations of your
business and your eligibility to receive a loan.
Cash flow is the movement of money in and out of your business. The process includes inflow and outflow of cash :
INFLOW which comes from operations such as the sale of goods and services, loans, lines of
credit, and asset sales.
OUTFLOW which occurs during operations such as business expenditures, loan payments, and
business purchases.
It's crucial to balance these two figures and maintain a reasonable balance of cash at all
times. An effective cash flow system will help you manage funds to cover operational costs and
bills and help you foresee potential problems in the future.
Profit and loss statements and income statements can be used to determine projections for
future cash flow trends of your business. These financial documents are instrumental in making
cash flow projections. However, a cash flow statement serves an important and independent
purpose - it accounts for non-cash items and expenses to adjust profit figures. Cash flow
analysis statements display not only changes over time, but also available net cash.
Our experts will guide you in developing the cash flow analysis.
Breakeven Analysis.
Breakeven Analysis: How to Know When You Can Expect a Profit
Breakeven analysis is used to determine when your business will be able to cover all its
expenses and begin to make a profit. It is important to identify your startup costs, which will
help you determine your sales revenue needed to pay ongoing business expenses.
For instance, if you have $5,000 of product sales, this will not cover $5,000 in monthly
overhead expenses. The cost of selling $5,000 in retail goods could easily be $3,000 at the
wholesale price, so the $5,000 in sales revenue only provides $2,000 in gross profit. The
breakeven point is reached when revenue equals all business costs.
To calculate your breakeven point, you will need to identify your fixed and variable costs.
Fixed costs are expenses that do not vary with sales volume, such as rent and administrative
salaries. These expenses must be paid regardless of sales, and are often referred to as
overhead costs. Variable costs fluctuate directly with sales volume, such as purchasing
inventory, shipping, and manufacturing a product. To determine breakeven point, generally following
equation is used:
Breakeven point = fixed costs/ (unit selling price – variable costs)
This is a point where every business makes the difference. Our experts will advise you
as, how to carry out the break even analysis and how exercise control over it.
Borrowing Money for Your Business.
After you have developed a cash flow analysis and determined when your business will make profit,
you may decide you need additional funding. Borrowing money is one of the most common sources
of funding for a small business, but obtaining a loan isn't always easy. Before you approach a
lender for a loan, you will need to understand the factors the bank will use to evaluate your
application.
See some of the key factors a lender uses to analyze a potential borrower.
- Types of Financing.
- Ability to Repay.
- Credit History.
- Equity Investment.
- Collateral.
- Management Experience.
Let our experts advise you as to what would be the best method for getting money for your business.
Financial Assistance from 123 Instant Office.
123 Instant Office provides financial assistance or introduce a financer to support your business.
You can get financial assistance from the 123 Instant Office if you :
- Operate for profit.
- Reasonable owner equity to invest.
- Use alternative financial resources.
Our experts will advise you as to how to get financial assistance form 123 Instant Office.
For more details and support,
contact our experts at :
646-880-3035