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The Benefits of effective due diligence in Business

The goal of due diligence is to discover hidden information about a business. Performing an effective due diligence will take time, resources and money. It’s certainly true that due diligence needs to be performed because some business owners intentionally hide information about a business they’re trying to sell. It’s often not what’s said but what’s not said in these situations that you are trying to discover.
When you perform a legal or financial due diligence, your accountant will look at the income statement, the cash flows, and other financial data. You will also collect all of the outstanding contracts and agreements needed to allow your attorney to assess the legal status of the business. You will want to look at the data for the last 3 to 5 years depending on how diligent you are. Legal and financial due diligence have the principles of law and accounting to rely on, and a competent attorney and accountant can perform these assessments without too much trouble. These assessments will tell you the recent history of the business and the legal and financial status up to the day of closing.
Operations due diligence is a risk/opportunity assessment to determine the future sustainability of a business. "Business operations" is a very broad, rather generic term that doesn’t have strong disciplines like law and accounting to base an assessment on. An effective operations due diligence requires a structured approach rather than the ad hoc methods used by most investors and businesses today. ... See more

Ο Μιχάλης Ζερβογιαννάκης, Managing Partner HBPO, Σύμβουλος "Up Hellas", χορηγού της Ημερίδας #Υπηρεσίες θα εστιάσει στις «Διατακτικές σίτισης: Η καινοτόμος λύση για την επιχείρησή σας» #ΕΞΑΑΑ ... See more

COST MANAGEMENT

Cost management is the process used by companies to reduce their costs and increase their profits. Depending on a company’s services or product, their strategies can vary. Companies typically are not focusing too much on cost. Cost becomes more important when competition increases, and price becomes a differentiator in the market. This process of looking for, finding, and removing unwarranted expenses from a business without a negative impact is necessary.
Here are two ways, that may help you to achieve this goal.
1) Adopt a long-term mindset
Too often, cutting down costs is only implemented as a short-term solution to an immediate crisis and once the crisis has passed, organizations abandon cost restrictions and fall back into previous spending habits. Pursuing sustained cost optimization requires a series of long-term goals.

2) Review all discretionary and miscellaneous spending
Each organization needs to not only clearly communicate new guidelines for discretionary spending, but also the expectations and consequences involved in following these guidelines.
3) Seek professional cost management advice
Though it may seem insignificant to hire a consultant or pay for a training course as part of a cutting down cost initiative, seeking the help of trained professionals is often a quick and effective route to ensuring that your organization does not waste valuable time and resources on a cutting down cost strategy that may be doomed to fail.

If you wish to reduce the costs of your business, we can provide you the best advices, and find the best solutions for your company. Cutting down costs is the quickest and easiest way to improve the profitability of your business. These measures are often employed to keep a business operating through difficult economic periods. We will help you introduce a cost-control system that can bring immediate savings and ensure that you remain competitive in the longer term. ... See more

The Importance of a Financial Plan for Start-ups.

Starting your own business is an extremely risky, but ultimately exciting and rewarding adventure. The act of transferring business ideas from a piece of paper into the real world is a completely different ball game then.

The financial plan helps guide the day-to-day decision making of the business. Comparing forecast numbers to actual results yields important information about the overall financial health and efficiency of the business

Far too often we hear of small businesses closing their doors, simply because they didn’t have a handle on their cash flow. This can cause them to run out of money before they have time to make a profit. So, you not only need sufficient start-up capital to finance your business, but you also need to know how and when to spend your money.
So, let’s take a look of how a sound financial plan can help your start-up to flourish.
Prioritize expenditures
Knowing where and when to spend your capital is vital to your success. Without a firm plan you can bounce around spending money, but not achieving much progress. Your financial plan will help you to prioritize your goals, highlighting where spending your capital is important and where it is not.
Additional finance
Most small business start-ups need an additional injection of capital to keep them going, and they usually apply to banks or other financial institutions for these loans. The problem is that you will need to show evidence of a sound financial plan to obtain further finance, as well as a full account of your expenditures, profits and losses since your start-up. This means that you need a financial plan from the very beginning, if you want to stand any chance of receiving additional funding.
Employing staff
The more employees you take on, the greater your expenditures. Your financial plan will detail how much you can afford to pay for staff, which in turn, will inform you on the number of staff you can employ. It is always a good idea to keep the number of employees to a minimum, as this frees up your capital for other vital areas. Many new start-ups outsource much of their work, as this is a strategy that helps them to keep their costs down.

This is what a financial plan will outline for your business, keeping you on track and helping you to spend your seed money wisely. A good one takes this kind of situations into the account and helps business owners save company money for real emergencies.
ΗΒPO Company is always willing to help you manage your money in the right way to avoid any unexpected results. ... See more