Starting up a business will inevitably require different costs as there are so many variables to be taken into account. There are, however, simple guidelines that can be followed that will help you to keep costs under control. If you have more ideas then we'd love to hear them!

• It's all about the money, and so always keep a tight rein on it. This means watching every single penny and treating it like your last. This way you will question every expenditure and decide if it's something you really need in order to take the business forward or whether it's a luxury that can be saved for when more money is coming in.
• In the same way you also need to keep a very close eye on your cashflow and forecast. By reporting on your cash daily or weekly there won't be any unpleasant surprises down the line and you can deal with problems as they arise.
• To make this easier have everything going through one person. They will have all the financial information at their fingertips and will be able to manage your business's expenditures with a full understanding of the cashflow.

The subject of pricing reared its ugly head again recently when my partner and I had a heated discussion about what price to quote for two projects we'd been invited to tender for. I felt my partner was going in too low and that we were undervaluing both the quality of the work and our time. He, however, felt that the quotes I wanted to give were too high and that we would lose out on the jobs. As ever in business we compromised somewhere in the middle, but it did raise the thorny issue of where we should set our pricing.

What you decide to charge for your product or service is one of the most important decisions you will make as a business person. Both too high and too low will cause you potential problems with your sales and cashflow and will affect the growth of your business. This isn't purely about new businesses as it's also important for established businesses to carry out regular reviews of their pricing to help improve their profitability. Plus, of course, new and growing businesses must always be aware of what their competitors are doing in terms of pricing.

Not only is a business plan an essential part of setting up a business, it's actually one of the first things you should do and, very importantly, has to be done right if it's to be of any use. This is why it's often best left to the professionals to ensure your business plan will work hard for you, for example, getting the funding you need to launch your business. Don't think that you won't need a business plan just because you're not seeking a loan as your plan will also help you think through all areas of your business. Think of it as a roadmap to success navigating you through the inevitable ups and downs of entrepreneurship.

Here we look at why you need a business plan - a well written business plan that is.

 

Setting up a Business – your business plan will enable you to see the steps required to start your business including what needs to be done and how you will go about achieving your aims.

Is it a Feasible Idea? - by setting out your financial forecasts and identifying your target market you will be able to see if you have a sound business idea.

Every business, from those people running a small business at home to large corporations, have to invoice, but how you invoice - and chase unpaid invoices - can have a huge impact on the cashflow of your business and, ultimately, the survival of your company.  Re-visiting your invoicing procedures and increasing efficiently will improve all aspects of your business. So, here we have put together a few simple ideas to help you improve your invoicing:

Send invoices immediately - Why wait until the end of the month to send invoices when you can invoice as soon as a job is completed. If you wait 15 days to invoice you've already lost 15 days when you could have had the money in your account. Businesses need to be paid as soon as possible, so why wait unnecessarily.

Using online software – The benefit of online software to send invoices is that you can invoice your customers when ever and where ever. In addition, you have the security that all your invoicing information is safe and secure.

Provide a detailed description - All invoices provide a field to write a description of the work you are invoicing for. Not only does fully completing this give customers a feeling of value for money, but it can prevent payment disputes - whether to simply delay payment or due to confusion over what is being invoiced for.