Page 107 - Spring Into Markets

B – Banking and budgeting
• Keep your business expenses, costs and accounts completely separate from your personal ones
• If you haven’t already you will need to open a business bank account. Most banks have good offers for business start‐ups, so compare first.
At the same time speak to them about other financial services products, such as company credit cards and merchant services (an ability to take credit card payments)
• Maintain a good relationship with your bank manager and business bank‐ ing advisor. Keep them informed, of both successes and any problems
• A common business mistake is how to handle cash as it comes into the business. Don’t be tempted to put payment for work done or services provided straight into your pocket. You should bank everything, cash and cheques alike
• Use money wisely; spend as little as you can. Keep your stocks low rather than a storeroom full to bursting with a variety of products. Stock levels can be replenished as and when and you won’t tie up much needed cash in stock that you may not be able to sell
When managing money, don't think like a big company, think like a little company and pretend that you don't have
any money, even when you really do have some. The practice of always trying to find cheaper ways of doing things will stand you in good
stead forever.
From an article written by Simon Read, the founder of the Hubworking Centre
Guide 15 Your First Year 107