Introduction

Cash flow is the lifeblood of any business and therefore it is essential that businesses manage their finances effectively.  No matter how healthy your balance sheet appears in terms of the physical assets your business owns or the money owed to your business, your ability to convert sales into actual cash at critical times is crucial to the survival and continued growth of your business.

On this page:

  • Financial Management – Understanding the basics
  • Avoiding cash flow problems
  • Ways to finance your business
  • Grants & Funding
  • Useful links 

Further information

Financial Management – Understanding the basics

As a business owner, regardless of whether or not you use an Accountant, it is important to have a good understanding of your business’ financial situation.  There are 3 key elements of financial management:

  • Financial planning – making sure you have enough money at the right time
  • Financial control – understanding when and where money is coming in and going out of your business
  • Financial decision-making – having accurate information to hand to enable you to make informed decisions about your business, now and in the future.

The first step to effective financial management is to estimate your income and costs – this is a forecast or budget.  These figures feed in to the following financial statements about a business:

  • Cash flow statement – shows money going in and out of the business each month.  This is a useful management tool.
  • Profit & Loss Account – shows the sales your business has made minus the costs of generating those sales.  This statement tells you how profitable your business is.
  • Balance Sheet – shows a snapshot of your business at a particular moment in time.  Shows what your business owes, is owed and is worth.

The Growth Hub have access to a wide range factsheets to increase your understanding of these topics.

Avoiding Cash Flow Problems

Here are some top tips to maintain good cash flow:

  • Establish good credit control procedures
  • Check that customers are creditworthy
  • Invoice as soon as work is completed
  • Offer incentives for customers to pay early
  • Make it easy for customers to pay
  • Negotiate better terms with suppliers
  • Plan ahead for expenses such as utility bills and tax payments
  • Budget for, control and reduce costs wherever possible
  • Have systems in place to monitor your cash flow regularly
  • React quickly if you anticipate cash flow problems!

Ways To Finance Your Business

This short business support video by the Business Support Helpline can help you with financing your business.

Funding

A business needs to be appropriately financed at all stages, from start up to growth.

Whether you are looking to raise finance for a new business venture or find investment to support the growth plans of your existing business, there are many things to consider before deciding which source of finance is right for your current circumstances and plans.

There are many finance options that businesses might consider at various stages of their journey, including Business loan, Equity finance, Hiring or leasing (equipment, machinery) and business grants.

  >  Click here for further information on our Funding & Grants page

Any provider of funding or finance will want to see a robust business plan and financial forecast which clearly demonstrates the viability of your business.

The Growth Hub team have access to a wide range of finance factsheets and resources to support you – from business planning, cash flow forecasting and raising finance through to maintaining good credit control and avoiding cash flow problems.

The Growth Hub team can also talk to you about finance options and help to link you to appropriate free or subsidised financial advice schemes.  Get in touch with us today.

Useful Links

  • Growth Hub Website | Funding & Grants | Click Here
  • British Business Bank | Business Finance Guide | Click Here  
  • British Business Bank | Finance Finder | Finance Your Growth website
  • ICAEW British Finance Advice Scheme | Businesses can access a free consultation from an ICAEW chartered accountant | Click Here  
  • Gov.UK Finance & Business Support Finder | Find business finance, support, grants and loans backed by the government | Click Here

To find out how the Growth Hub can help your business, contact our team today on 03456 047 047 or use our online form

business-support-icon-60px-01Business support programmes

    • Growth Hub's Growth Support Service
    • Devon
    • Fully funded one to one advice session with a Business Adviser providing you with an opportunity to speak to an expert adviser about your ambitions.
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    • Countryside Stewardship
    • Devon
    • Financial incentives for land managers to look after their environment.
    • Read more
    • RDPE Countryside Productivity Scheme
    • Devon
    • Funding for projects in England which improve productivity in the farming and forestry sectors and help create jobs and growth in the rural economy.
    • Read more
    • Prince's Trust Enterprise Programme
    • Devon
    • The Prince's Trust work with 18 to 30-year-olds to turn big ideas into a business reality through their Enterprise programme. From training and mentoring support to funding and resources, they're with you every step of the way.
    • Read more
    • Start Up Loans
    • Devon
    • A government funded scheme to provide advice, loans of up to £25,000 and mentoring to startup businesses.
    • Read more
    • Innovate UK
    • Devon
    • If you want to develop an innovative product, process or service, you may be able to apply for funding of between £25,000 and £10 million through Innovate UK.
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    • HMRC
    • Devon
    • HMRC provide online support for starting or running a business around topics such as business tax, self-assessment, business expenses and record keeping. Support options include webinars (online presentations), e-learning, YouTube videos and factsheets.
    • Read more
    • Start Up and Grow
    • Devon
    • Business support for pre-start businesses offering up to 12 hours assistance. Supporting businesses to start trading, create employment and develop their product offering.
    • Read more
    • Enhance Social Enterprise - Heart of the South West
    • Devon
    • Existing social enterprises will be supported to develop and launch new products and services as well as entering new markets. There will also be support for voluntary and community sector groups that want to transition into trading social enterprises as well as budding social entrepreneurs in need of help to develop their ideas to start trading
    • Read more
    • South Hams Business Support
    • South Hams
    • A range of fully funded advice and guidance for new or existing businesses in the South Hams District Council area.
    • Read more
    • RDPE Growth Programme
    • Devon
    • Grant funding for projects in England which create jobs and growth in the rural economy. Grants are available in three categories; business development, food processing and rural tourism infrastructure
    • Read more
    • Growth Support Programme
    • Devon
    • This programme provides eligible businesses with up to 12 hours of support from a local business adviser, focusing on key business topics such as Digital, Finance, HR, Marketing and Innovation. The Programme is part funded by the European Regional Development Fund.
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    • Carbon Trust Green Energy Fund
    • Devon
    • The fund can be used to purchase a range of equipment, including energy efficient lighting, Heating, Ventilation and Air Conditioning (HVAC) and energy efficiency controls – vital equipment across a range of business sectors, including manufacturing, retail, and hospitality.
    • Read more
    • Health & Wellbeing Challenge Fund (South West)
    • Devon
    • Read more
    • Virgin Startup
    • Devon
    • Access to advice, mentoring and a loan of between £500 and £25,000 through the Start Up Loans Scheme.
    • Read more
    • Taunton Deane Borough Council - Business Support
    • Taunton Deane
    • A selection of business support services from Taunton Deane Borough Council
    • Read more
    • AONB Grants & Support
    • Devon
    • Sustainable Development Funds which are aimed at communities, groups and businesses who are looking to develop an activity or service that contributes to the economic or environmental sustainability of the AONB.
    • Read more
    • Somerset Social Enterprise Fund
    • Somerset
    • Loan and Grant funding for social enterprises based in and / or predominantly operating in Somerset. Support includes free advice from Somerset Social Enterprise Fund Manager with regards to developing applications, business plans and relevant information to help funding decision making.
    • Read more

icon-events-60pxEvents and workshops

    • TDA - Love Running A Business? Don't Understand the Finances? We can help.
    • 18 December 2018
    • Highbridge
    • Read more
    • TDA - Demystify your Business Plan - Making it Simple
    • 08 January 2019
    • Highbridge
    • Read more

Get in touch

Contact the Growth Hub team to find out about support available locally.

03456 047 047

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