Business Financial Advice Don’t Cut Corners

Being in business is a serious matter. It takes a lot of resources to get a business up and running, much less to make it profitable. Yet far too many business owners try to cut corners in places where they really shouldn’t. But savvy business owners understand that there are professionals that can handle many business related tasks, and more than pay for themselves. One such example is getting professional business financial advice.

Before you work with a financial advisor, it is vital that you check into their qualifications. You not only have to make sure that they have the proper credentials, but you also need to make sure that they understand business in general, and they should have at least a passing knowledge of the specific industry that you operate in. But once you find a good advisor, you should be sure to treat them very well, as they can have a positive impact on your bottom line.

A good business financial advisor can save you money, increase profits, and help you to make the most of your revenue. They should be well versed in how to structure your finances in a way that gives you the greatest chance for success. Another major asset is that they can significantly lower your tax burden. Remember, they do this kind of thing for a living, so they can point out things you weren’t even aware of.

The initial consultation should be fairly in depth, and the two of you should discuss most of the major aspects of your business. The more prepared you are, the better. Be prepared to answer financial questions, and bring along any supporting documents you may need. You can always talk to the advisor before your initial meeting to see if there is anything specific they require. Other than that, answer all of their questions honestly. If you’re not sure of something, say so. If any part of your business is in severe financial trouble, then say so. There is no need to be embarrassed; the advisor needs to have an accurate picture of where you stand before they can make a feasible plan.

Maybe you’re not in rough shape at all, but you should still seek professional business financial advice. One of the biggest mistakes any business owner can make is to assume everything is running smoothly. Even if things are going okay right now, a professional advisor can help you to spot potential problems before they ever happen. In a sense, they are a form of business insurance. Not only that, but if things really are going well in your business, they can help you allocate your income in the most effective way.

Finally, there is something else professional business financial advice can bring you: peace of mind. Just knowing you have such a person on your team can relieve a lot of stress. Plus, you won’t have to focus as much energy on those things, allowing you to spend more time running other areas of your business.

Financial Services Marketing Insights

What we now call “marketing” began long before the name was coined. In the mid-1800s, traveling salesmen dressed “snake oil” and other tonics in fancy packaging and extolled their virtues to a gullible public. New marketing applications soon proliferated in the belief that marketing could make many new things possible in virtually any business situation. For more than a century, implementation, experience and ultimately strategy have helped marketing evolve from crude beginnings into today’s sophisticated practices.

Consumer product firms have been the pioneers in the marketing field and have taken the undisputed lead as the creators of marketing’s best practices. While sophisticated marketing techniques have spawned consumer giants, most financial services firms had to be dragged, kicking and screaming, into the era of sophisticated marketing.

The Advancing State of Financial Services Marketing

Financial services marketing has, however, evolved rapidly over the last decade. As a result, the very nature of the marketing function in financial services firms is undergoing a dramatic modification as more attention is paid to marketing-driven processes that impact the entire firm. Our observations suggest that the more progressive financial services organizations are currently going through an intellectual and practical transition that is forcing the reexamination of the role of marketing within their firms. Many have begun to realize that financial marketing responsibilities include not only developing the firm’s mission statement and key messages, but also defining its business focus, relevant differentiation, competitive advantages and value proposition.

At the same time, however, a number of financial services marketing directors must engage in long-term turf battles with other departments before they can implement worthy financial marketing initiatives that will help accelerate the achievement of corporate goals. In many financial organizations, the persistent problem of differentiating financial marketing from sales still remains largely unresolved. In addition, some financial services marketing directors must still enlist substantial management support just to maintain equilibrium and obtain the opportunity to accomplish even limited objectives.

Focusing on the Customer

Peter Drucker, a sage of the financial marketing discipline, discussed customer defined value almost 50 years ago. During the last decade his concept of a customer-centric focus has become part of popular marketing literature and is now the guiding principle of financial marketing. Drucker’s fundamental mandate that ‘the customer’s interests must come first’ can be summarized by the following statements paraphrased from his extensive writings:
The only valid definition of business purpose is to create a customer.

What the business thinks it is producing is not as important as what customers think they are buying; what customers consider to be value is decisive.

Every business has only two basic functions: marketing and innovation.

Marketing is your whole business as seen from the customer’s point of view.

While easy to articulate, customer-centric practices are difficult to implement in most financial services organizations. Obstacles include a prevailing product-push mentality, a focus on short-term profitability, under-investment in financial marketing activities, and the lack of solid market intelligence about the needs and wants of target markets. We believe, however, that in the future the most successful financial services marketing organizations will be those that make Drucker’s principles their own through extrapolation, adaptation and creative application. As effective financial marketing evolves to a cross-functional, multi-disciplinary activity, successful firms will create a culture of customer orientation throughout the organization and incorporate advocacy for customer welfare in all corporate decision-making.

With the financial services industry currently going through a transformation, management’s challenge is to provide the leadership to displace the status quo and create a culture of opportunity. Early adaptors who apply the concept of “integrated marketing” on an organization-wide basis will not only develop a customer-orientated culture, but also create opportunities for innovation, improved performance and incremental profitability.

Why Use Outsourced Accounting?

There are many reasons why accounting is being outsourced more commonly by different types of businesses and organizations. Some may think that using outsourced accounting services is a bad idea because of less control and more costs, but that is a myth that has been proven wrong countlessly. In reality, there are greater benefits by outsourcing your accounting services, then by organizing your own accounting department or doing your accounting by yourself. We will go over the benefits of outsourced accounting and allow you to see why it is a popular action that many businesses and organizations are taking.

Using outsourced accounting services can actually save you money. By outsourcing your accounting needs you do not need to hire employees an in house accounting department. This saves you not only money but also time. It costs time and money to find certified employees to operate your accounting department. With outsourced accounting service,s you do not need to worry about salaries, workers compensation, insurance, or many of the other expenses of having employees. Another great benefit, is that you do not have to worry about losing an employee and having to find another in house accountant to replace the one you lost. There are also many accounting firms that can integrate their services with your own accounting software so that it provides an easy accounting integration.

Another great benefit that also comes from outsourcing your accounting needs, is that you can focus more on the accounting data. This eliminates having to focus on entering your accounting information and allows you to look at your current situation and make plans for future improvements and developments with the data provided. By being able to maintain your focus solely on payments, invoices and profit and losses, you will be able to spend your time on finding better solutions and maintaining a better relationship with your suppliers and customers.

By using outsourced accounting services, you have a lower risk of error and problems with your accounting. It is better to trust your accounting needs with a certified professional rather then trying to do your accounting yourself. Unless you are a certified accountant, you have a very good chance of making a error with your accounting. This chance of error is nearly eliminated when you use an outsourced accounting firm that specializes in the field of accounting. These errors can have a very negative and dramatic effect not only on your records of what is owed and needs to be paid, but also on your current costs and projections related to your profits and losses. By not properly and accurately maintaining accounting records, you run a high risk of failure with your business.

Outsourcing your accounting needs has proven to provide many benefits. These benefits will not only save you time and money, but will also provide solutions to help you grow and expand your business based on the information you receive form your accountant. Accounting can be a very strenuous task that requires a lot of attention to detail as well as knowledge about the field to have it done correctly. Because accounting can be outsourced so easily and can be done at a lower rate outsourced then in house, outsourced accounting has proven over time to be the best option.

What Can A Business Valuation Expert Do For Your Business?

Many business owners plan to one-day cash out and retire from the corporate life. Unfortunately, there are others who get undervalued in the process when they ultimately sell their business. People cannot help but feel dissatisfied when they discover that they were not able to sell their business as much as they want. If you are going to avoid putting yourself in that position, then you will do well to invest in business valuation early on.

Many fail to realise what makes small business valuation so important . You would do well to avoid making the same mistake. Expert service valuation specialists think that choosing the right valuation methods and beginning the evaluation process are two important aspects which influence the expected list prices of a service.

Methods of business valuation

There are numerous ways to determine the value of a business such as liquidation value, property valuation and earnings capitalisation. The most typical approach used by business valuation experts in Australia — the revenue multiplier method in which the value is obtained by increasing the revenue a company makes by a market element. In this approach, the annual profit of the business is multiplied by the first industry multiplier, which is a number accepted by the market when listing a comparable organisation for sale. For example for a food service company, the yearly net revenue could be increased by 2. For a retail company, the multiplier could vary from 0.75 to 2, depending upon other variables which affect the value of the business.

Aspects such as low sales lower the multiplier and can be increased for specific niche organisations. A skilled business evaluation professional thoroughly familiar with the market can supply a sensible number for the multiplier, so the business owner can examine what their company deserves.

Business owners seeking to sell and exit their company must start the process of appraisal as early as possible. Frequently, the result of an assessment can be a wakeup call for business owners, who find the value of their organisation is not rather precisely what they expected it to be.

An early valuation helps business owners identify whether they will get the cost they anticipate for their organisation when they decide to offer. It likewise gives them time to execute systems, strategies and tactics to grow their organisations to a level where they can accomplish the anticipated price when it is time to exit the business.

A company assessment can be done as soon as a service Is functional and performance metrics such as sales, expenditures and income are available. These parameters can be used to set long-term exit strategy goals.

Using the evaluation report, business owners can figure out how fast business has to grow and what systems and processes have to be in place when they decide to exit.

Eventually, a company is only worth precisely what someone would want to pay. For sellers to get the best price, it is rewarding to utilise the services of a skilled organisation appraisal specialist who can provide a practical view of what a business is worth and what changes they have to carry out to increase its value.