Happy customers are the backbone of companies. The easiest sale you can make is to a happy customer! And you can continue to sell to them, as their loyalty is with you. Here are a few ways to consider upselling your products and services to your existing customers:
The Coronavirus pandemic has thrown a wrench into a lot of businesses’ future plans. Business exit plans have also been changed due to this economic crisis. Mergers and acquisitions have been among the many exit plan options that have been drastically affected by the crisis. While mergers and acquisitions have survived through other economic crises, like the 2008 financial crisis, this one seems a bit more drastic. Here are a few ways we can see the effects of the crisis on mergers and acquisitions.
As state-wide lockdowns continue to be extended, we are just beginning to understand what reopening the economy will look like. Our recommendation? Small businesses should use this time to prepare their business for optimal operation.
Unfortunately, during times like these, it’s important for small businesses to prepare for the worst. If you understand where your business stands and the impact coronavirus will have on your operations, you will be well-equipped to plan for the future.
Cash flow forecasting can be a lifesaver for your business during uncertain times and preparing financial forecasts in advance is always the best option. But if you have been working to navigate COVID-19 without any forecasts, remember — it’s never too late to start.
These forecasts provide your team with a better understanding of your business and how well it is functioning. This information allows you to make timely, well-informed decisions without excessive effort. Wondering where to begin? Here are our top tips for cash flow forecasting:
As many small business owners expected, the SBA PPP loans have proven to be an excellent option for funding during this uncertain time. However, many small businesses were blindsided by how quickly these funds were depleted and became enraged after learning that large corporations like Shake Shack and the Lakers received these loans before most small business owners had an opportunity to apply. Here’s how that happened and what the SBA is doing to fix it:
At the beginning of the SBA PPP roll out, there was a significant amount of confusion surrounding what information was required from small businesses to apply, including what paperwork was necessary and what precisely that paperwork needed to show before they got the chance to apply.
The SBA PPP Loan funds have been replenished recently and are currently being disbursed among many small businesses throughout the U.S. Recently, Treasury Secretary Steven Mnuchin announced that all SBA PPP Loans of over $2 million will be subject to an audit. That being said, businesses who take out smaller loans may also be audited, but every business that takes out a loan of more than $2 million can count on a visit from the IRS within the next few years.
As we begin to look beyond the coronavirus economic lockdown, the government gave us a plan to end lockdowns and stay-at-home orders within the next few months. President Trump has provided governors with a three-phase program intended to safely revive America’s economy, which is called “Opening Up America Again.”
No matter how emotionally attached you feel to your business, it is essential to start considering an exit strategy as soon as you open your doors. An effective exit strategy will allow your company to take advantage of timely opportunities, such as an acquisition, an IPO, or a lucrative partnership. Planning for future changes by using these types of strategies will also give you the flexibility to set aggressive goals and pivot accordingly as you reach them.
On May 4, 2020, the SEC announced temporary conditional relief for small businesses that have offered Regulation Crowdfunding offerings in the past to allow them to raise additional funding through Regulation Crowdfunding investment offerings under more expedited and less strict criteria.
A skilled finance team provides strategic direction, sophisticated insights into the company’s financial situation, financial forecasting, growth planning, and tight control over budgets and cash flow.
However, interviewing, hiring, training, and paying full-time salaries for each of these employees can be expensive and time-consuming. Many small businesses just don’t have the resources to assemble a full-time finance team. Outsourcing can help!
With the changing technological times, almost every company is utilizing technology to run their businesses. This can put a company in a vulnerable position if they do not have the right cybersecurity protocols in place. Small businesses tend to be the first target for hackers, as they assume that smaller businesses don’t take the time to protect their company from cybersecurity threats.
Small and medium-sized businesses have historically had challenging relationships with traditional lenders. When these business owners are in need of more cash flow, they are the least likely to be approved.
If you’re a new business owner you’re going to find it difficult to obtain a traditional loan from a bank. In most cases, any of the following could prevent you from getting a loan:
You’ve been in business for less than two years
You have a credit score below 640
You want to borrow less than 250,000
The good news is that technology in the financial sector is revolutionizing the way lending is done and big banks are no longer the only option for SMB loans. Alternative financing in the U.S has tripled in size from 2014 ($11 billion) to 2016 ($34 billion)*:
Every year TGG’s Founder and CEO, Matt Garrett speaks with thousands of small business owners around the country. They ask him numerous financial and accounting questions, yet the same ones come up time and time again. These are the most frequently asked questions Matt has been asked:
At TGG, we believe in simplifying things whenever possible, especially when it comes to developing a basic business model. Accounting is complicated enough! One area where simplification helps tremendously is benchmarking. While every business has some unique characteristics, businesses within industries share many more similarities than differences with respect to how they make money and what range of profitability can be expected.
Simplifying and comparing to a Basic Business Model provides the benefit of benchmarking any business against the expected industry business performance at any given time. It can be broken down into the following five parts; Revenue, Cost of Goods Sold (COGS), Gross Profit, Sales, General and Administrative Expenses (SG&A) and Net Operating Income. The basic business model is a static equation, but the inputs change by industry, making this simplistic model extraordinarily powerful.
Annual business planning is one of the most important things that a business owner or CEO must do. It sets the strategy, the goals and determines the tactics for the following year.
Of course, there is a lot to consider in terms of where your business has been and where you are headed. It’s important to be organized and stay focused because how you plan often sets the tone for your business. Here are 7 key steps for an efficient planning process.
Cash accounting and accrual accounting are two concepts that are foreign to most people, but it’s important to understand the difference. As a business owner, if you manage your books on a cash basis, you will ultimately fool yourself. Why is this?
Small and medium sized businesses are usually at a crossroads when it comes to their bookkeeping and accounting, especially if they’re growing. “Should we hire a Controller or should we try to do it ourselves?”
There’s a third option that gets frequently overlooked: outsourced accounting services.
Outsourced accounting didn’t really exist ten years ago, but small businesses are turning to full-service outsourced accounting firms more often to increase efficiency, add professionalism and save time and money.
Most business owners assume that having an in-house bookkeeper, Controller, or CFO who can pay bills, run payroll and manage company finances is the best scenario for their business. They believe having a person down the hall will ensure they have a clear view of the company’s financial position, but this isn’t always the best solution.
In this post, we’ll explain why having access to greater financial expertise can be game-changing for small businesses looking to grow.
At TGG, we meet business owners everyday that are reluctant to outsource their accounting and financial functions because they think it will reduce visibility into the financial health of their business.
At the same time, they’re struggling with accounting and reporting issues–even when they have someone on staff to handle bookkeeping.
Large companies benefit from accounting and finance departments that have several layers of expertise at their disposal.
It’s usually too costly for small businesses to staff an entire finance department. But they can emulate this model by using an experienced, outsourced accounting service that provides the right expertise at the right times.
You might be surprised to know that this does not necessarily mean getting rid of your current staff.
Accounting for small business can mean different things at different times in your company’s growth and it’s important to have the right expertise on hand.
Here are the most common questions we hear when small businesses are considering outsourced accounting services.