Business Process Management

Spring is just around the corner, and despite the fact the weather seems to be playing with us a bit this time of year it is still certain that about a month from now, everyone will be pulling out their spring wear.

Most Men and women tend to approach fashion in different ways. But there’s one accessory that both genders share a passion to, and for the last century, that accessory has been wristwatches. You are able to notice magazine covers and “fashionistas” around the world starting to pay attention to watches and brands are battling over who will dominate the wrists of the rich and famous this spring.

The Movado watch company seem to have a new approach. They have been advertising during new times of the day on TV, attracting younger viewers. But most watch companies like Baume & Mercier watches and Longines wrist watches keep their advertising in the usual spots. The companies are acknowledging the fact that the media landscape has changed, and so are the methods that need to be used in order to reach a new and younger audience.

Getting celebrity endorsement has always been popular in the watch industry but ever since the Tiger Woods debacle, many luxury brands are wary of these endorsements, and are trying new approaches to reach their target audiences. But most people just need to be informed of the brands’ existence and see if it fits their own personal style. With bloggers now gaining more weight in the fashion world, advice on what wrist watch to wear is common online. Some people are actually using the new accesses to experts in order to change their styles in more daring ways. Longines watches, for example are sticking to old media as their main form of advertising, using formula one drivers as endorsers and producing commercials that basically could air during any decade and would be relevant. However they are pouring money into the new media, creating interactive websites and allow immediate ordering of their wristwatches through their online store.

The best way to refresh your collection this spring is actually to try out a new look. Try a new wrist watch brand and see how people around you react. You’ll be surprised at the amount of support you get once you try out a brand new Weil watch. But remember to stay true to who you are and not go too out of sync. Otherwise you may find yourself on one of the popular “what not to wear” blogs.

Is my business services company insolvent, will be a question many small business owners will be asking themselves during this recession. It is crucial to understand this as it will affect your decision whether to take formal insolvency advice and hence the need to shut down a company.

The classic definitions of insolvency are that your assets are less than your liabilities or you cannot pay your debts as and when they fall due.

However there are a number of other factors which also give clues as to insolvency. I have produced a series of articles each dealing with some points to bear in mind. Taking the two tests above as our lead we have:-

1) The cash flow test; simply can the business pay its debts when they become due for payment. The most common example of this is a failure to pay PAYE and NIC to the Revenue on time each month. They always appear as a creditor in any liquidation. Similarly, if you have suppliers who grant you 30 days credit, are you pushing these repayments beyond 60 days.

2) The Balance Sheet test; or the do you owe more than you own test. This needs honest consideration as a cursory glance of balance sheet may indicate that it is solvent, but on closer inspection some items such as stock may be overstated or plant and machinery not written down correctly, and debtors and work in progress not readily collectable. Taking these into account it may be that the balance sheet looks very different.

3) The Legal processes test; The simple test here is whether the company is receiving letters before action, or even worse, writs or summonses. These legal actions may sometimes result from an oversight and can be simply paid, however if they are not and are repeated and not settled then this is an indication that cash is not readily available and action needs to be taken.

As directors you need to be wary of these as there are penalties for wrongful trading of up to 15 years disqualification as a director.

You have a number of options such as Creditors Voluntary Liquidation, Administration of Company Voluntary Arrangement.

If you are in any doubt whatsoever make sure you take professional advice.  We have helped many dozens of companies shut down in the last year. We can start and finish the process in as little as three weeks and in the interim help you re-start.

Company revenue refers to the money a business makes from the sell of its products or services. The amount of revenue earned by a business in a specified time period tells illustrates the success or failure of a company. In order to earn a profit, company revenue must be greater than the company’s expenses. Revenue is calculated by multiplying cost per unit by the quantity sold.

Company revenue growth is essential to analyzing the financial stability of a company. In the case of small businesses, lenders look at revenue growth to decide if it worth the risk to loan money to a business. The same is true for corporations. However, revenue growth is necessary to attract stockholders to invest in corporations.

Company revenue is not the same as income, or profit. Revenue only refers to the amount of money incurred due to a business’s activities, such as sales. Profit is the amount of money a business actually has after expenses are deducted from revenue. While revenue is a valid determinant of a company’s financial health, profit is the main indicator of a company’s success or failure.

Businesses usually build their potential for revenue by advertising through various types of media, holding sales, and offering more products or services. However, the price to potentially build revenue may end up costing more than the actual incurred revenue. It is vital to research the costs of advertising, discounts, and more products or services before investing in them.

A company with good working capital management generally refers to a business that successfully handles its working capital to improve and maintain profitability. Working capital management focuses on the short-term assets and liabilities of a company. Effective management of working capital involves creating sources of cash flow and managing how that money is spent. A business owner must make sure there are enough funds for the operating expenses such as salaries, inventory, debt payments, and emergencies.

There are many ways to fund the short-term monetary needs of a company with good working capital management. Business owners can obtain funds through a short-term loan, factoring its accounts receivables, trade creditors, equity funds, and lines of credit with other companies.

Businesses can also encounter working capital problems when customers fail to pay their invoices. Not all businesses have excess capital to deal with these types of situations, but the ones that do should effectively manage ways to invest surplus funds to pay unexpected expenses and improve profitability. If a company has good working capital management, the less that company will have to borrow.

Because good working capital management focuses on monthly handling of funds, it helps to balance the finances of a company. Business owners do not have to wait until once a year to see how their funds are being used on a day-to-day basis, thereby allowing them to detect inconsistencies before they negatively impact the business’s productivity.