Planning your Finance
Many businesses go bust because they run out of money. Why? Because they didn't plan properly. Remember, when planning how much your business will cost, to add in the following factors:

1) Furnishings
Not only do you need to pay for the fitting of your stock and buy desks, chairs, etc you also need to make sure you have enough money to replace them when they get broken or be able to survive if they don't arrive on time.

2) Rent
The rent for your building is likely to rise. Depending on where it is the rate could go up or down, but if you want to prepare for the worst make sure you have enough money to cover any rise in cost.

3) The next 6 months
Customers don't just start turning up at your business. One of the major reason why new businesses fail is they plan for all the setup costs and then go bust because they have had no customers and did not plan for this. It takes time to build up a customer base and you need to make sure you have the money to keep your business going while this happens.

4) Taxes
The amount of profit your business seems to be generating may be great but how much of that is going to disappear in tax? When working out your profit and lose account, make sure you have added tax to your loses or deducted straight from your profit else you may get a nasty shock.

5) New Technology
Most businesses work out that their expensive setup costs are a one off so its ok. But they are not a one off. They may last a very long time but eventually technology will overtake and you will be forced to update them. Having a small amount set away for new technology never hurt.

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This article was posted by mworld.

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