Top Finance Management Tips

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StrategyDriven Managing Your Finances Article |Finance Management Tips|Top Finance Management TipsWhen you have your finances in order, life feels like a breeze. There are a few different ways you can manage your money, but different methods work for different individuals. It’s best to try a few ways of managing your finances and see which one works successfully for you.

If you’ve got debts, pay them off as soon as possible

Debt is the biggest reason people fail to manage their money successfully, if you get yourself into money troubles it will be a lot harder to organise savings, and budgeting can feel pointless if you can still see you’re in debt. If you are in an emergency situation, there are options like payday loans direct lender if you think you will be able to pay it back.

The best way to deal with debt is to push yourself to budget in certain areas of your life and pay a bit off your debt every month. Setting aside a certain amount will ensure you don’t spend it, if you get paid once a month you could pay off a set amount on this date. The main thing to focus on is paying the debt off, whether it’s an overdraft or a credit card the more you pay off, the better. Service fees, interest fees, and other bank charges will keep adding up until you pay the money back.

Create a monthly budget you can stick to

A monthly budget you can actually stick to will set you up for a few weeks. If you get paid once a month, you can divide up your money on payday, make sure you set aside any basic outgoings like mortgage, rent, or bills and then you know you can spend what is left over. However, if you have debts to pay off or saving goals, take this money straight out on your payday aswell, this will prevent you from spending it.

Set an amount to save every month

If you aren’t in debt and you feel at a stable point with your income, you can start to set aside a certain amount to save every month, if you aren’t already doing this. It doesn’t have to be a huge amount but it will slowly add up if you are consistent. At the end of the month seeing savings in your account can feel satisfying and rewarding, you just need a certain amount of self-control to make sure you don’t feel proud of yourself and spend them, you would then be back to square one.

Use money management phone applications

Banks that have a money management feature are very helpful for tracking your spending. Some applications even have categories for your transactions, so you can compare what you are spending every month. It is helpful to set monthly budgets for categories, for example, maybe you want to spend a small amount on transport and try to use your bike more. Planning our budgeting and spending goals at the beginning of the month will keep you motivated.

Find a side hustle

We hope you now feel more positive about managing your finances, whether you’re in debt or doing well with your savings, there will always be a way to manage your money more successfully. It’s just finding the best option for you.

How To Get Funding Through Horizon Europe?

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StrategyDriven Managing Your Finances Article |Horizon Europe|How To Get Funding Through Horizon Europe?Horizon Europe is an ideal funding program for startups or SMEs working their way through the innovation ecosystem in Europe. Horizon Europe has a budget of €95.5B for seven years between 2021 and 2027; this budget boosts sustainable development and competitiveness in the EU. Furthermore, the program supports the innovation ecosystem in Europe, and it has pillar III, where startups find vital opportunities.

Between June 23 and 24, the European research and innovation days take place. These days signify the annual flagship event on research and innovation for the European Commission. In the event, there was a policy-related discussion that hints at an upcoming opportunity to learn about the Horizon Europe program for entrepreneurs; the opportunity is slated for info days 2021, which is between June 28 and July 9.

This post further looks into the investment strategy of Horizon Europe and how startups can apply for funding opportunities.

What is Horizon Europe’s Mission and Scope?

The Horizon Europe program strives towards three goals, including strengthening European scientific and tech bases and the European Research Area. Also, the program aims at boosting Europe’s competitiveness, jobs, and innovation capacity. The third target seeks to deliver on the EU’s ambition for a sustainable transition to meet citizens’ priorities.

Horizon Europe has a three-pillar structure; this information is necessary when finding open calls for funding. The three pillars include excellent science, global challenges and European industrial competitiveness, and innovative Europe pillars.

The Excellent Science pillar is in support of frontier research projects to boost scientific competitiveness. In contrast, the global challenges and European industrial competitiveness pillar invests in societal challenges research. On the other hand, the Innovative Europe Pillar through the European Innovation Council aims at making Europe a front-runner in market-driven innovation.

Furthermore, the pillar seeks to develop the EU’s innovation landscape in association with the European Institute of Innovation Technology with research, education, and innovation projects.

Recently, the Horizon Europe program introduced the concept of missions for increasing the funding’s effectiveness further. The mission revolves around commitments for solving global challenges, including climate change, food security, and cancer. In addition, missions operate as a portfolio of actions; they include research projects and policy measures while bringing experts in business, innovation, media, science, and civil society together. By November 2021 latest, the projects should be up and running before engaging business communities and citizens in the implementation.

What Are the Funding Opportunities for Tech Startups and Companies?

As mentioned earlier, Europe’s budget is around €95.5B for 2021 to 2027; the budget includes €5.4B from NextGenerationEU for boosting recovery and future resilience and additional reinforcement of €4.5B. Furthermore, the European Defence Fund implements Horizon Europe while the Euratom Research and Training Program complements it.

The program tackles global challenges and European competitiveness with over half of its budget while innovation projects are about €13.5B. Furthermore, with the European Innovation Council (EIC) addition, the program increases support for breakthrough innovation. EIC is a one-stop shop that leverages private finance to help innovators, especially SMEs, in the space of scaling up, increasing agility, and creating future markets. Due to the program’s novelty, the EIC has a budget of €10B for 2021 to 2027. Also, the funding opportunities will be more than €1.5B in 2021. Also, the program earmarks 70% of its budget for SMEs.

The funding and tenders portal allows access to the calls for proposals. Calls give detailed information on research and innovation issues that proposals applications should address.

The EIC has an open round of €1 billion in the innovation category. Therefore, startups can apply for grants up to €2.5M and receive direct equity investments between €500K and €15M. The EIC Accelerator aims at investing in innovations that have significant Green Deal innovations impacts for economic recovery, strategic digital, and health tech. Furthermore, asides from financing, companies benefit from business acceleration services in the ecosystem, including access to top investors, expertise, and partnership opportunities. The funding’s first deadline already has over 801 complete applications, which is a strong response. Also, the full applications’ next cut-off date is October 6, 2021.

The Energy harvesting and storage technologies grant program is another innovation-focused open call. The program will be open till the end of September 2021. As long as an SME, large company or small consortium has five independent legal entities, they can apply. Proposals should address innovative technologies that combine clean, low cost, and high energy density harvesting and storage. In addition, the proposal should also address innovations for the renewable energies combined harvesting and storage or devices for electrochemical storage and advanced materials.

Horizon Europe also supports partnerships where the EU, member countries, and their private sector commit to developing and implementing research and innovation activities. The European commissions’ partnership with Breakthrough Energy is an example, and they support the catalyst project for making competitive cleantech solutions in Europe

Conclusion

The Horizon Europe program provides funding for startups and SMEs. With the numerous funding opportunities, all you need do is apply for grants. If you need more help with this topic, check out https://www.emdesk.com/horizon-europe and hit the ground running. Whenever there is a call for a proposal, always pay attention to the research and innovation issues your application should address.

Small Business Cash Flow Management: Why It’s Important and How to Deal With Problems

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StrategyDriven Managing Your Finances Article | Small Business Cash Flow Management: Why It’s Important and How to Deal With ProblemsThe businesses that fail to manage cash flow effectively are often doomed to failure. Put simply, you need to have more cash coming in from sales than you have going out for expenses. Being able to pay your debts on time and ensuring you have enough reserves to cover all expenses is key to success. Read on to find out why cash flow is so important and how you can manage it effectively.

Why Is Cash Flow Important to a Small Business?

  • Business expansion – You can’t grow without having cash reserves on hand. Keep money set aside for opening new premises, buying new stock, and marketing to new clients
  • Manage emergencies – You never know when disaster might strike; having enough in the bank to cover emergency kit repair, economic downturns, and other unforeseen circumstances is vital
  • Cover debts and protect your business credit – Proper management of your cash receipts means you’ll always be able to pay your debts and suppliers on time. This means your business credit score will stay healthy and you won’t get trapped in a disastrous debt cycle
  • Negotiating power – Being able to pay suppliers upfront can often lead to more favorable terms and discounts. Plus, not needing to take out credit can give you more flexibility to negotiate

Common Small Business Cash Flow Problems

  • Not holding enough reserves – You should always aim to have cash in the bank to cover at least three to six months of expenses. Small businesses that fail to do this can get hammered by unforeseen costs, go into steep debt, and potentially close completely
  • Growing too fast – While this seems counterintuitive it’s actually incredibly common for new businesses. For example, you could take on 100 new orders in one week but won’t receive payment for these for at least 30 days. Meanwhile, you still need to cover the cost of those sales. Without adequate cash reserves, you’ll fail to meet your orders
  • Late payments – Almost every single small business, freelancer, and entrepreneur in America has faced the problem of late payments of invoices. You’ll almost certainly need to dip into cash reserves to cover costs until you get paid
  • Bad pricing – Sell your goods and services at too high a price and you’ll scare off customers; going too low can lead to business failure. Many brand new small businesses struggle to hit this balance and can find cash reserves taking a hit

Examples of Cash Flow Management Problems in Business

Let’s take a look at a typical cash flow statement to use as an example. Remember cash flows aren’t like your income or profit and loss statement. A cash flow simply records when cash goes in or out of your business for any reason. Any movements in red represent cash going out in our example below.

Cash flow from operations for XYZ Company
Net income $50,000
Additions to cash
Depreciation $4,000
Increase in accounts payable $3,000
Subtractions from cash
Increase in accounts receivable ($40,000)
Increase in inventory ($15,000)
Net cash from operations
$7000
Cash flow from Investing
Purchase of equipment ($3,000)
Cash flow from financing
Notes payable $1,500
Cash Flow at 31st August 20XX
$5,500

Looking at XYZ’s performance it seems we have a clear victim of overtrading. With a huge increase in accounts receivable it looks like the organization has taken on a big order and has spent a significant sum of cash on inventory and equipment to fulfill it.

However, all of those sales have gone into accounts receivable, meaning it won’t receive this cash for at least a month or more. This leaves the company on dangerously low cash reserves of just $5,500 to cover any emergencies this month.

In addition, there’s always a risk that these clients come up short or pay late leaving a very risky $40,000 the company might not receive any time soon.

Plus, looking at the low increase in payables it seems like XYZ company is paying its debts on time or early. It might want to negotiate better payment terms to improve cash flow or it may even need to miss payments if cash runs out.

Finally, with the large purchase in inventory to cover the order at almost half the cost of sales, it suggests XYZ might be pricing its goods far too low and might want to up prices.

Effective Cash Flow Management Tips for Small Businesses

  1. Don’t be too lenient with customers – You’ll want to strike a balance between giving your clients enough time to pay but not being too charitable. Don’t be afraid to chase unpaid invoices and know you’ll always have the option to take formal action where necessary. If you’ve built a good relationship from the start with clients and suppliers this shouldn’t be much of an issue, though
  2. Build a cash reserve – Always try to put some of your profits aside each month into your emergency cash reserves. Having liquid cash on hand is absolutely essential for the survival of any small business. This should be around three to six month’s worth of your average expenses. You can use the rest of your cash to invest and grow
  3. Get good accounting software – The larger your business gets the more complicated the transactions become. If you’re still using simple spreadsheets it can be easy to lose track of invoices and payments. It’s almost always worth the extra cost to get a good piece of management software in to keep you on track
  4. Cash flow is more important than profit – Your business can show a profit on paper but if you don’t have the cash in the bank to back it up you could still end up failing. Liquid cash should always be your number one priority when managing any business. If you check your earnings against your break-even point, but money still feels tight, it’s likely you need to fix your cash flow
  5. Encourage early repayments – You’ll want your clients to pay you as soon as possible so you might want to put early repayment discounts on your invoices to encourage faster receipt of cash. Plus, if you have a large invoice it’s worth splitting it up over several payments to make it easier for customers to pay back and you’ll be guaranteed some cash every month
  6. Reduce or delay expenses – Conversely, while you want customers to pay quickly, you should be trying to extend your own payment deadlines as long as you can. Try to negotiate extensions where you can and opt for Net 30 vendors where possible. Plus, you should always be looking for ways to boost efficiency and decrease expenses
  7. Manage your inventory – If you run an e-commerce store or retail business that needs a lot of stock you’ll need to manage it carefully. Buying too much can mean your cash flow takes a hit while buying too little means you’ll struggle to fill orders. You might want to consider buying some stock management software to track seasonal variations and other fluctuations

Conclusion

While small business cash flow management might seem a little confusing at first, with a little time and effort you can really start to see where you can make some savings. If it’s not something you’re actively managing right now, we highly recommend making it your number one priority.

Those organizations that successfully manage cash flows are much more likely to succeed and turn a tidy profit. Remember to keep chasing your invoices, ensure you always have a healthy cash reserve, and reduce your expenses as much as you can.

A Look at the Bitcoin Price History

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StrategyDriven Managing Your Finances Article |Bitcoin Price History|A Look at the Bitcoin Price HistoryEver since Bitcoin was made public, it has gone on to be one of the most valuable crypto coins. Bitcoin has high liquidity, meaning that selling it is very easy. However, Bitcoin prices tend to be highly volatile and its price fluctuates so much.

However, its volatility shouldn’t discourage you from purchasing a few Bitcoins. In this guide, we will take a look at the Bitcoin price history. We will also look at how you can invest in crypto coins if you haven’t done so already.

Buying Bitcoin

Buying Bitcoin is very simple these days. You have the option of using crypto exchange apps or P2P platforms. If you are a newbie, we would suggest you use a crypto exchange platform. They are simple to use and offer wallet services that can come in handy when you’re starting out.

Crypto exchange platforms are available as web apps and on iOS and Android. So, you can access the service from your smartphone or laptop. You will first need to sign up for an account to access the services. Most crypto exchanges allow users to buy, sell, or swap crypto coins. The signup process is very straightforward. All you need is an email address and you’re good to go.

Once your account is verified, your next step is adding your preferred mode of payment. These days, you can buy crypto from your bank account via your debit or credit card. The crypto platform will charge you a small fee to cover the transaction. If you’re new to crypto, this is a great post to read as it will help you understand its history.

History of Bitcoin Price

If you look at the price of Bitcoin over the years, there is one standout feature. Bitcoin prices always close out at a higher price than what they started with at the beginning of the year. When Bitcoin was made available to the public in 2009, it was valued at $1 USD. At the time, most people didn’t believe in digital currencies.

Bitcoin’s major selling point was that the transactions were anonymous. The transactions were added to the blockchain without any human intervention. In 2011, Bitcoin was still trading at $17 USD. However, in June of the same year, its price crashed down to $0.01 USD.

That price crash was caused after a major crypto exchange trader announced that it had been hacked. In 2012, Bitcoin faced another test of time. Many Bitcoins were scammed through a Ponzi scheme that promised investors interest rates of up to 7% per week. During that period, close to 700,000 Bitcoin was stolen in that Ponzi scheme.

In 2013, Bitcoin started at $13 USD but closed out the year at $770 USD, which was quite a rise. However, there were numerous fluctuations throughout the year. Some of the incidences that affected Bitcoin’s value were after it was officially banned in China. Even though Bitcoin is considered one of the most volatile crypto coins in the market, most investors continue to buy it. However, if it stands the test of time, most investors predict that Bitcoin may soon hit the $100,000 USD mark sooner rather than later.

6 Clever Ways How Newly Established Businesses Can Save Money

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StrategyDriven Managing Your Finances Article |How businesses can save money|6 Clever Ways How Newly Established Businesses Can Save MoneyBusinesses must find better ways to save money when getting started. A new company won’t have the capital that major corporations have, and the owners must get creative when controlling costs. Better control over expenses helps the company get more out of their profits and reinvest in their business.

1. Buy Used Office Furniture and Cubicles

A great way for businesses to cut down on costs is to choose used furniture for their office. Used Office Cubicles could provide the same barriers in an office environment and provide adequate function. The business doesn’t have to spend hundreds of dollars just to improve the way their office looks. Used furniture can be repurposed and meet the expectations of the business owner. Comfortable and stylish furniture is within reach even with the most modest budget.

2. Use Social Media Marketing Options

Social media marketing options give the company a better option for getting started and spreading the word about their company and its products. If they perform services for clients, the business gets a chance to discuss these services on their social media.

When getting started, a business owner doesn’t have to spend a lot on ads. They can set up a social media profile and invite followers to like their page. The more they interact with followers and make a great impression, the business owner can generate a greater following.

3. Get Sponsors for Business Events

New business owners could save more on business events by getting a sponsor. The sponsors provide a portion of the cost, and the event gives both the business and the sponsor a chance to get exposure and attract more clients.

A top leader in their industry could act as a sponsor for the events and expand on the budget. A shared event gives both the business and the sponsor a brilliant opportunity without one party facing the majority of the cost.

4. Allow Telecommuting for Workers

Telecommuting workers cut down on costs for the business, and the owner doesn’t have to buy or rent a commercial space. They can set up a virtual office for all workers to connect to and complete all work tasks.

The virtual services allow the business and its workers to connect to a network and business services. If the workers complete tasks remotely, the business owner doesn’t need worker’s compensation, and they reduce liabilities that require more extensive insurance policies.

5. Use Shared Workspaces

Shared workspaces are another option for businesses and give the workers equipment they need for everyday tasks. The workspaces offer desks, meeting places, equipment, and internet services. The company pays a minimal membership fee, and their workers can use the services at any time.

6. Outsource Business Services

Outsourced business services cut down on costs, too, and the business pays a flat-rate fee for each service they need. The business can choose the services they want and adjust the contract as needed. The contracts include a variety of business services the company needs such as phone services, internet, call centers, and data centers.

Businesses need to devise strategies to cut down on operational costs, and each strategy cuts their costs according to the choices the owner makes. When setting up a new business, some owners won’t have the capital to get everything on their own at first. A better plan helps the business owner keep costs at a minimum and increase their profits.