Sound financial management is at the heart of every business, no matter how big or small. Without it, even viable and potentially profitable businesses will fail.
Every year in the UK, around 400,000 new start-up businesses begin trading, but just two-thirds of those are still in business within three years and just half remain after five years. For most of those businesses, it’s not a lack of customers or poor-quality products or services that are responsible for their demise – it’s simply a lack of cash.
Important financial decisions have to be made right from the off. There is no bedding-in period. While some small business owners may have prior experience running a business or have strong financial literacy, many are complete novices. That’s when it pays to have resources to turn to that will guide you through the crucial early decisions and the financial tasks you’re going to face.
This guide to managing small business finance has been written for those with limited business finance experience in mind. It’s for those of you who have had an idea and decided to pursue it, but now need a little help to manage your finances effectively.