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How to Avoid bankruptcy

Tips on How to Avoid Bankruptcy from our Project Campfire community.


Tips on How to Avoid Bankruptcy from our Project Campfire community.

Stick with your Strengths

Recognise whether you are skilled and passionate enough to manage your own money. I used to spend hours fighting with accounts, GST reconciliations and invoicing – which was often late as a result. Now I realise it’s better for my profits to focus on making the money and let somebody else help me with getting it in the bank. Be brave enough to invest in a little financial support each month.
Kathryn Jackson, careerbalance

Drop Your Pride

All successful people have required help at one point or another so don’t let your pride stand in the way of getting help when needed. There is a great deal of assistance available if you are open to receiving it and much of it is for free. Remember, getting help is not a sign of failure; it is a sign of wiseness. One more thing, don’t leave it too late.
Lynda Moe, Lynda Moe Transformations

De-Stress Regularly.

Financial stress is extremely debilitating especially at a time when decision-making is critical. When we are stressed we often don’t think as clearly and are more easily confused. We also tend to react quickly rather than slowing down and thinking things through. Don’t run the risk of making poor decisions. Find your best way(s) of de-stressing and do it daily!
Lynda Moe, Lynda Moe Transformations

Numberese is the language of business

Most business owners only watch their revenue, the most misleading indicator of success. The only two numbers that really matter are a) cashflow and b) net profit. If those two numbers are bad, you’re heading for trouble.
I know too many business owners who have gone bankrupt by increasing their revenue every month and ignoring their cashflow and net profit. Avoid bankruptcy by speaking the very basics of Number-ese.
Chuck Blakeman, The Crankset Group

Be Innovative to Keep Business Coming In

Be innovative. Think of new ideas to bring in business, e.g. run a promotion saying that anyone who refers business to you over a certain period will receive a voucher or free gift.
Be constantly present. Your brand must be seen by prospective clients all the time as this builds trust.
Be aware. Know what is happening in your industry so that you are always one step ahead.
Chanré Williams at Deschan Marketing & Promotions cc

Has your business hit trouble? In 9 out of 10 cases, it will be out of step with the market. So change the market!

Can’t do that? Darn!
The most common cause of poor sales is a failure to adapt in time. The process is difficult, because it involves letting go of something that has worked well in the past. To ensure your company remains on a sound financial footing, I advise commissioning an external strategy check every two years. It’s much easier for an outsider to see when something needs to be changed!
Andreas Sternowski, Business Leaders Management Consulting

Preserve your credit rating by communicating

If you are struggling to make ends meet during one of the most difficult financial times in recent history and want to preserve your credit, you should look to avoid bankruptcy. Communicate with your creditors and let me them know your situation – they may offer you some breathing space. Look to eliminate unnecessary expenses and/or consolidate debts and speak with your chartered accountant or someone specialising in debt management.
Mark Gwilliam, Business Advisory Accounting & Tax Services Limited

Work Multiple Angles

Don’t expect that your business will come from just one source. That’s not enough. You need to be visible in multiple places so customers can find you. Create a website, be active on social networks, start a blog, post articles on article directories, use email marketing, place online ads, consider direct mail, etc. The more angles you can work, the more likely you are to gain customers, grow your business and avoid bankruptcy.
Susan Greene, Freelance Copywriter

Have a Plan

Don’t enter into a business blindly. Study the market. Develop a strategy. Know who your competitors are and figure out a way to be better. Is there room for another player? Is there a unique niche you can fill? Where will you find customers and how will you attract them? Work the numbers and make sure they add up before you take the plunge. Make a plan and work it!
Mark Reff, One Touch Art

Have good documentation

Statistics show that businesses that end up in legal disputes are eight times more likely to fail than businesses that don’t. That’s because legal disputes drain your business of valuable resources that could otherwise be spent making money. Those resources include not just the money you may spend on your lawyers to sort out the mess, but also your time and focus. The key to avoid legal disputes is to make sure that you have good documentation in your business. Any major deals should be covered by a written agreement and if you can’t afford to go to a lawyer to get an agreement drafted for you, then something you put together yourself is often better than nothing at all.
Michael Smyth, Barrister

Look after the pennies …

… and the pounds will look after themselves! It may be an age-old adage but I believe it has some truth to it and it’s how I have approached, structured and grown my business over the past 18 months. Review all opportunities, but invest wisely; don’t allow yourself to be romanced and keep your feet placed firmly on the ground. And finally, plan for tomorrow and not just for today.
Alison Page – Alison Page Marketing

Make Hay while the Sun Shines

The biggest mistake most businesses make is to believe that boom cycles last forever. When things are going well and you are bringing in lots of cash, set some aside. It’s no different than a farmer making hay in summer when there is plenty so there is enough feed to get by in the cold winter. Just as night follows day, boom is always followed by bust, so be prepared.
Liz Koh, Moneymax

Make it easy for clients to pay you

The easier you make it for clients to pay, the faster they will pay. Everyone has the ability to take a credit card payment simply by setting up a Paypal business account and sending a payment request via email. However your clients might want to pay you (credit card, direct transfer, cash, cheque, Paypal) offer that option.
Kelly Exeter, Swish Design

Commit to Abandonment

Before you launch, during your early planning stages, make a firm commitment to your ‘abandon now’ point. Write it down. Decide how dire the situation will have to be for you to walk away and, if you reach that point, walk away. Don’t get into a ‘wait & see if things get better’ mindset nor pour your life saving into the sinking ship. Just move on. Failure paves the way to innovation. Recognize and analyze the mistakes, learn from them, and start again.
Tobey Deys, PlacesFirst Inc. (formerly Lomotron)

Avoid Financial Ruin and a Shattered Ego

Most entrepreneurs like nothing better than the satisfaction of being their own boss. The rewards are both monetary and psychological-profits and esteem. Not surprisingly the cost of failure is also monetary and psychological-financial ruin and a shattered ego.
Developing an accounting plan is fundamental to success. Your system doesn’t need to be complex, it just needs to enable you to keep tract of your business. A good system will
Gabrielle Syben myVA virtual assistant

“Worst Case” Contingency Plan

Be certain to model for the worst case scenario. What’s the worst that can happen?
Howard Forton, ManagerThingy

How Robert slept his way to financial ruin

When Robert went into business with David, he thought he could trust him to make it a success. If things went bad, Robert could rely on the limited liability of the company to protect his personal assets. So when Robert received a claim against him for the company’s debts, he nearly had a heart attack. What started out as a bad investment was quickly turning into a personal nightmare. More …
Michael Smyth writing on

Five Quick Ways to Get Through a Cash Crunch

I recently featured this resource article about surviving a cash crunch in my February newsletter. It came from our online library and has a good mix of preparation plus quick action steps that will help avoid those bailiffs arriving at your door.
Andy Burrows from Icon Business Solutions

Living Your Brand

Everyone is not your buyer. There may be a mass amount of people that purchase your product, but that’s not everyone. Dig deep and research your audience. Find the answers to these questions: What are their spending habits? Values? Concerns? Needs? How does your product/service fit into their life?
By answering these direct questions you will begin to win over your key customer.
Sherry Lynn Simoes, Women of Today

Five Ways to Improve Business Efficiency and Avoid Bankruptcy

A business owner’s financial wealth is determined by his Net Profit. In simple terms, to avoid bankruptcy, you must become fully aware of your Spending and Debt habits. The Grand Law of Wealth as explained in one of the Simpleology Courses is “”Increase Your Incomings and Decrease Your Outgoings”. As simple as it may sound, most of us are challenged in following this Law.
Lalitha Brahma, Elbee Services, LLC

Save on Workspace Costs

Working from home is a cost effective option, saving both traveling time and money over leasing workspace or using serviced offices. If you lack space at home, you can hire a cabin from just $49.50pw tax deductible. Just one phone call to 0800 111 344 or an email to [email protected] could see your new office delivered the following day.
Andrew King, Roommate Cabins

Preserve your credit rating by communicating

If you are struggling to make ends meet during one of the most difficult financial times in recent history and want to preserve your credit you should look to avoid bankruptcy. Communicate with your creditors and let them know your situation – they may offer you some breathing space. Look to eliminate unnecessary expenses and/or consolidate debts and speak with your chartered accountant or someone specialising in debt management.
Mark Gwillian, Business Advisor Accounting & Tax Services Limited

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Accounting & Finance

The Essential Guide To Securing Funding For Your Startup


If you are planning on launching your very own startup, the chances are that you are excited, nervous and panic-stricken at various times throughout the day. Waving goodbye to excellent promotion prospects, job security and office banter is hard enough, but not knowing when your next paycheck will arrive can cause worries.

However, transforming your business dream into a reality takes courage and determination. Many people have visions of becoming an entrepreneur but very few actually take the bold step to give it a go. Your startup will need funding. However, it can be difficult to know where to turn for cash. Take a look at this guide to help you secure funding for your startup.

The Bank

The most traditional method for business funding is to pay a visit to your bank manager. Suited and booted, you should know your figures, sums and business vision inside out, ready to seduce the bank manager and convince him to part with his cash. When you enter the bank, you should have your comprehensive business plan in your hand, ready for it to be heavily scrutinized. A bank needs to know that you are a responsible borrower and that you have mitigated risk within your plan.

Ensure that you have crunched your numbers and that you know your financial forecasting for at least the next two years. Make sure that you are passionate in your pitch. Inject a little personality into your words and show off your enthusiasm for your product or service. Demonstrate your flair and business acumen and create an excellent impression. On occasion, banks will deny your loan application and if this happens to you, don’t feel like your business plans are shattered. You simply need to take another approach.

Business Angels

If you want to go down another funding route, a business angel could be the ideal path to follow. These individuals are experts in their fields and love investing their own cash into small enterprises. They want to help upcoming entrepreneurs make their mark in their chosen sectors. If you can secure funding from a business angel, you will have an idea that is validated. They will be investing in you as much as your business plan. Rather than just a monetary investment, business angels will be on hand to give advice, help you network, and be a listening ear if you have any startup problems.


If you are looking for a more flexible and postmodern way to secure funding, it might be worth looking into crowdfunding. By pitching your product or service online, you can attract a global market who might be keen to stake a claim in your business. You can offer discounts, shares or a return in order to attract investment from the amateur armchair investor. While each investments might be small, if you can secure hundreds if not thousands of tiny investments, this can soon add up to a larger pot of funding.

If you are keen to take your first steps into the world of entrepreneurship, follow this guide to help secure funding for your startup.

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Accounting & Finance

5 Small Businesses Tips to Help You Get Ahead

business funding

Few things have the potential to fire the imagination quite like the prospect of being your own boss. That has long been the dream of so many Canadians. From British Columbia to Nova Scotia, the plains and the Territories, Quebec and Calgary and everywhere in between, Canadians love the idea of striking out on their own and taking charge of their destiny.

Starting a small business of your own can be a great way to do just that. What’s more, a small business could always grow into something more someday – if you foster its growth properly. From conception to execution to securing a small business loan, here are a few tips as to how to do just that.

1. Be Ambitious

First and foremost, you’re going to want to be ambitious and dream big. Even if you plan on keeping things local and don’t imagine yourself becoming the next Tim Horton’s, there’s still no harm in at least thinking of your business on a grander scale. If you ever decide to expand, you’ll have plans in place – and if not, you’ll still be in the right mindset to manage your business well.

Entering into things imaging your business as “just” a small store or restaurant can lead to you underselling your vision – and yourself. Imaging your company as having the potential to be something more can be a great way to do the same for yourself and your coworkers, thereby keeping everyone focused and motivated.

2. Don’t Overreach

That being said, dreams are one thing – reality is quite another. While it is advisable and even admirable to reach for the stars to some extent, you don’t want to overreach yourself, either. This is especially pertinent when it comes to resource management. A company like Tim Horton’s is able to operate the way it does in part because it has far more resources than your small business does.

As such, while envisioning your company on a grand scale can be good aspirational thinking and a good future goal, running your new small business as if it were already a major corporation can have serious drawbacks. You risk overworking your employees, overtaxing your resources, and flaming out all too quickly.

3. Have a Clear Plan

That’s why it is essential that you have a clear plan from the start. This can help ensure that you get the best of both worlds. On one hand, it can help you plot out your ideas for expansion, making them feel a little more “real” while simultaneously helping everyone stay on the same page as to the direction of your small business. On the other hand, it can also help remind everyone as to where you are right now. You’re a small business with big plans for the future – but still operating as a small business here in the present.

4. Securing a Loan

To realize those ambitions and grow them over time, you are going to need some capital and Thinking Capital resources, is a knowledge center for businesses considering funding. It’s important to be very careful about the length and terms of small business loans.  Every small business is different, so you’ll want to make sure that the loan is tailored to suit your needs.

5. Experience on Your Side

Last but not least, when it comes to preparing your small business for the future, you might want to seek out some advice. The best small business consulting firms have decades of experience to their credit, and can help you position, invest in, and grow your small business in a way that makes sense for your company.

Grow your small business in a big way with these helpful business tips.

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Accounting & Finance

5 Hidden Costs Of Starting And Running A Business


Starting and running a business isn’t cheap. As the old adage goes, it takes money to make money, and that has never been truer than when it comes to starting a venture. So when creating your budget plan, it is important that you include all the costs that go into running a business.

Knowing what expenses go into running a business can help you not only start the business but ensure you remain in business. Here are five business expenses you need to take into consideration.

1. Employee Benefits and Perks

In addition to wages, there are several employee costs that you must take into account when running your business. Payroll taxes, benefits, and retirement plans are some expenses that, when not accounted for, could cause your business to run you into the red. It’s also important to add smaller expenses such as paid time off, training, conferences, employee turnover costs and office perks as they can add up very quickly.

2. Insurance

When you start your business, you might not need a lot of insurance. At the bare minimum, you’ll need liability insurance to protect yourself from liability risks imposed by lawsuits or similar claims. As time goes by, you’ll need more insurance policies to protect your business. This includes worker’s compensation insurance, errors and omissions insurance, property insurance, and business interruption insurance.

The type of policy and amount of insurance coverage you need will depend on several factors, including the type of business, size of business, number of employees, risk factors and revenue. These hidden costs can make it hard to stay on track if you don’t include them in your business plan.

3. Taxes

Taxes can be an unpleasant surprise for new business owners, especially if they aren’t generating money. Even if you aren’t making much, paying taxes can hurt your business in the first few years. One type of tax you need to pay is the self-employment tax which is more than 8% of your adjusted gross income. You’ll also pay additional taxes every year to incorporate your business, no matter if you have revenue or not.

There are lots of resources on the internet that can help you estimate the total amount of taxes you’ll need to fulfill your initial expenses. A business startup cost calculator can provide a rough estimate of all the taxes fees you are required to pay when starting and running your business. It can also estimate the total amount of capital you’ll need during your first year in business.

4. Legal Fees

Legal fees are the number one hidden cost for small businesses. This is because small companies are victims of frivolous lawsuits as they are more likely than large organizations to settle rather than litigate. In 2008 alone, the tort liability price tag for small businesses was a staggering $105.4 billion dollars. Settling cases for small businesses costs less than $5,000, but even as low as $1,000 can be significant for a small business.

5. Administrative Costs

These costs will sneak up on you if you don’t include them in your business budget plan. The costs include all basic office equipment like desk, chairs, computers, filing cabinets, printers, utilities, software and office cleaning equipment to name a few.

Planning your business budget is one of the most stressful but important parts of entrepreneurship. Including these five hidden costs in the budget can go a long way toward getting your business up and running.

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Accounting & Finance

7 Ways to Cut Costs in a Small Business


Cutting costs in a small business doesn’t have to be complicated or time consuming; the trick is knowing where to look. What may appear small costs on a daily or even monthly basis will add up over time to a significant amount. If you can put yourself in a budgeting mindset, you will be able to identify the must-haves from the nice-to-haves and the essentials from the luxuries.

Of course, cutting costs is not always about not spending money; it can also be about learning to spend your money in smarter ways. Here are 7 ways you can cut business costs and, ultimately, increase profits.

1. Embrace Technology

Technology and business software have moved on considerably in recent years enabling us to streamline efficiency and modernize our operation on a whole new level. Online payment services, accountancy software, online conferencing services, social media platforms…there are a huge number of ways to make your business more efficient and easier to manage.

2. Go Paperless

If you’re still printing and posting your communications and marketing materials, you should try and move as much as possible online. You can send communications and invoices via email and can keep your company’s key data in a more secure virtual Cloud storage system rather than a filing cabinet. You’ll save on the cost of paper, ink, envelopes, and postage, and also make your operation more environmentally friendly through reduced waste.

3. Try (Or Do More) Online Marketing

For most businesses, online marketing is no longer an option; it’s a necessity. From a website optimized for search engines to informative blogs and engaging and entertaining social media marketing, online advertising can yield great results in terms of brand awareness and sales with minimal costs.

4. Stick to a Budget

You can’t make business decisions without a budget; you need to know exactly what is coming into your business account every day and what is coming in, so it’s important to get the right system which enables you to do this. Stick to a strict, cost-reducing budget as much as you can, and you should reap the benefits very soon.

5. Switch Utility Suppliers

A quick and easy way to save money is to switch your business utilities, supplier. There are lots of suppliers out there and changing to a cheaper tariff could save you a significant amount of money each month. It may also be worth considering swapping a traditional phone line for mobile phone contracts or virtual phone systems which use an internet connection rather than a landline.

6. Consider Cheaper Premises

If you can be flexible about where you run your business from, you should consider whether you could be saving money by making a change. You may be able to downsize to smaller premises, sharing office space or even working from home. If you have employees, they may be able to telecommute.

7. Buy Second-hand or Refurbished Equipment

You may be able to reduce business costs by opting for refurbished furniture and equipment rather than brand new items. Many brands offer a good range of their products at discounted prices.

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Accounting & Finance

Making Something Out of Nothing: Business Grants Can Make Your Business Grow

business funding

Money. Most people need some, others need a lot. For the very few, they can never have too much money. And for these people, business is the way to their pursuit of happiness and success.

But as you all may already know, much like the pursuit of any dream, the road to success is paved with rough terrain and unexpected detours. But all that comes later on in your journey. The old adage remains true here — taking the first step is the very first step.

In business, that first step often translates to whether or not you’re able to generate funds for the business i.e. capital. And that, my friends, is often when many would-be entrepreneurs become disheartened. Because, whether you want it or not, setting up a business is going to require a significant amount of money, something that not everybody has access to.

Unless, of course, you’re able to secure money from a different source.

Raising Capital

There are many ways to raise money, but crowd sourcing and business grants seem to be the most popular method as of late. And it’s only rightly so. But between the two, business grants are more secure and they are also more predictable.

With crowdsourced funds, you’re banking a lot on how well people are going to react to your proposal. You’re going to have to convince a lot of people to get the money you need. With business grants, you only need to convince the grantor that your idea has merit — this is not as easy a task as it seems!

What Is a Business Grant?

According to the article, “small business grants are small amounts of seed money that further the goals of federal, state, or non-profit organizations.” The main difference between a business grant and a loan is that those who are given small business grants are not required to repay the amount of the business grant.

However, while this may seem like free money to the uninitiated, the difficulty lies in being able to convince grantors to entrust money to you.

This is because grantors are more careful in awarding their grants. For reference, the Federal Government does not award grants to help businesses start or expand. The only businesses that are awarded Government grants are those that yield the most success and in certain industries like medical research, science or environment.

Furthermore, there are many types of grants for specific business types.

Exactly How Important Is A Business Grant?

For a lot of businesses, a grant can mean the difference between success and failure. You may have the most brilliant idea but if you don’t have the resources to make that idea come into fruition it won’t mean much. This rings true even when you’re sure that you’re going to have a very profitable business venture.

A prime example of a business that could quite possibly benefit from a small business grant is Alte, a company that seeks to retrofit existing public transportation fleets with hybrid drivetrains which are more efficient as you put more miles on your vehicle.

Approximately 62 billion dollars is spent on new vehicles every year. Alte’s hybrid power trains could provide a better alternative to fleet owners as these hybrid drive trains would preserve the longevity of their vehicles.

Not only would fleet owners be able to get more use out of their vehicles, but the company would also be earning about 2 billion dollars of revenue every year. The only problem is that the company needs 130 million dollars to start production, a venture capital amount that could be easily solved by a business grant.

So, as you can already tell, business grants have the power to alter the fortunes of a startup. There are many ways to secure a business grant and sometimes you can even get one through a contest, such as this Fedex small business grant contest.

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Accounting & Finance

Brexit, Business & The Markets


No matter how you try and look at it, the word ‘uncertainty’ will always come to mind when discussing Brexit. Everyone is uncertain of how things will pan out when Brexit actually happens, and the UK leaves the EU. How will this affect exchange rates? What will it mean for small businesses?

There are more questions than answers as we can only really speculate based on predictions and things that have already happened. As such, we’ve tried to create a summary of everything that you need to know about Brexit, business, and the money markets.

The Current Brexit Timeline

Before we begin, it’s a good idea to see where we are in the Brexit timeline.  Research from DailyFX – In June 2016 the UK public voted to leave the EU. This was followed by the triggering of Article 50 in March 2017 to show the EU that the UK will leave in 2 years. Fast forward to March 2019, and we’re currently in the midst of a deal being drawn up that parliament will vote for or against. If they agree, we leave the EU and go into a transition period that takes the UK up to December 2020 when the government and EU agree on the future relationship. If no deal is approved, then the UK just leaves the EU without a deal.

Why is all of this important? Because it’s having a crazy effect on the money markets – particularly the exchange rates. Not only that, but business owners have no clue what this will mean for them.

Uncertainty From The Beginning

We can only speculate about how businesses will function after Brexit, but there’s no denying that confidence is at an all-time low. Everyone is predicting a period of financial uncertainty because some big companies may cease investment in UK goods, which is bad for all businesses in the UK. Then, there are the EU Trade Regulations that could start charging the UK when trading with countries from the EU. As such, it becomes more expensive to purchase raw materials for small businesses, which could put a lot of people in a dangerous situation.

Everyone was uncertain from the moment Brexit was announced, and things appear to be even worse right now.

Problems In The Money Markets

If you look at the currency exchange markets, there are recent indications of problems for GBP. Specifically, the GBP/JPY pairing is trading in the red in Asia. Experts say this is thanks to the current negotiations about the Brexit deal. Nobody really has a clue what’s going to happen, which creates further uncertainty in the money markets. There’s been a lack of progress, which is why GBP is falling in value.

So, the easiest way to summarise things is that Brexit is currently hurting the markets. A lack of control over the situation from the UK government leads to growing fears from markets all over the world. This creates a lack of faith, hence the decline of GBP. As for business confidence, things aren’t much better. We can’t say for sure what will happen when the UK leaves the EU, but we can say that nobody is very optimistic.

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