Tag Archives: own business

The secrets of running a successful home business

 

People who have “proper” jobs have a funny concept of what it is like to work from home, possibly because when they do have a day out of the office, not much “work” actually gets done….

 

If you are moving from an office-based job to a home office, here are five tips on how to make it work,

1. Have a proper office space

Don’t try to work at the kitchen table, in the living room, sprawled across the bed. None of that feels like a genuine place to work, and as a result you won’t feel like you are doing a proper job, which you are.

2. Open a work bank account

It doesn’t have to be a business account at first, as high street banks tend to charge extra for processing cheques, transactions and other fees just for businesses. An ordinary current account into which you pay your earnings and which is separate from your household accounts is free and a good idea. It helps you keep track of your money and allows you to demonstrate genuine business costs and expenses, which you will need to be able to do if the Inland Revenue comes calling…..

3. Keep records

The better your records, the fewer hours you will spend filling out your self-assessment form. When your business grows and/or you set up a company, you’ll need to do two sets of accounts – your personal accounts and one for your company.

4. Spend money wisely

You don’t need lots of expensive office equipment or a sophisticated accounting software package until your business is growing rapidly, but you do need very good anti-virus software on your computer or laptop.

4 proven ways to boost your cashflow

By Marianne Curphey

More time to enjoy life
Work for yourself and enjoy more free time

When you are first setting up your own business one of the main worries is likely to be how you will fund the transition from employee to self-employed, and how to stay financially afloat.

IThe difference between being a successful entrepreneur running a healthy small business, and a business failure, is management of cashflow.

Here are four proven ways to improve cashflow:

1. Get paid in advance

Request payment in full or in part in advance for your business services or products. This is easier if you provide services to individuals rather than large companies. In this economic environment, however, it can be a good insurance policy to request at least 50 per cent payment upfront for large projects.

2. Diversify

Often problems arise early on in business life if you rely solely on one customer. If they are late paying you, or unable to pay, you are going to be the one that suffers. Having a number of clients who pay you at different times for different types of work spreads the risk and evens out the intervals at which you get paid.

3. Join a collective

If you have like-minded friends or colleagues you can band together to set up a subsidiary business in which you are all involved. This means you earn income from their efforts, and vice-versa, so some income is being generated when you are not working. It also helps to protect you against potential periods of ill-health when you might not be able to work.

4. Make a note of the cheque run

Every business has a date on which it pays outstanding invoices and in order to be paid as quickly as possible you need to know the date of the cheque run for each client you work for. The “cheque run” also applies to BACS payments and transfers. By submitting your invoice a day late, for example, you might wait another 30 days to be paid.