The three unsung heroes of technology business finance
There is a lot of finance information readily available for technology businesses, covering topics like start-up investment, funding platforms and financial planning. However, there are other finance points that technology businesses should be aware of. Carl Hasty, director of international money transfer specialist Smart Currency Business offers three finance tips:
1. Ensuring a healthy cashflow
Technology businesses move in a fast-paced world. As such, you need to ensure that you have got a steady cashflow to fund your expenses – this is applicable whether you have low or high overhead costs.
Make sure that your invoices are properly set out to encourage prompt payment – this should include a deadline, as well as penalties for late payment. You may also want to consider invoice finance, a form of funding that advances cash from unpaid invoices for immediate use.
2. How to price products and services
Pricing is tricky, whether you’re selling products or services. Apple customers, for example, aren’t just paying for products; they’ve also bought into the culture crafted by the company.
Rather than set prices based on costs plus a desired profit, consider pricing based on the value of your products and services. This way, you’ll be charging your customers what they’d be happy to pay.
3. Saving on currency costs
Whether you’re importing raw materials or exporting the latest technological solutions, currency costs can eat into your profits. Businesses with international payments can save money and minimise risk by securing a currency-buying strategy in advance.
Opting to set favourable currency rates in advance can help protect businesses against rate fluctuations later on, and allows them to budget in advance.
