As a small business owner, you know the importance of having a clear and defined set of values. Your core values guide everything you do, from the products and services you offer to the way you treat your employees. 

In this post, we'll explore why core values are so important, and how you can go about defining your own.

• Think about what's important to you. What do you believe in? What do you stand for? These are the things that should be reflected in your core values
• Keep it simple. You don't need to have a long list of values; just a few key principles that you can stand behind.
• Make sure your values are relevant to your business. They should guide the way you operate and help you make decisions that are in line with your goals.
• Be prepared to live by your values. Your core values should be more than just words on a piece of paper; they should be something you actively practice in your business.

1. Put your people first
   This may seem like an obvious one, but it can be easy to forget when you’re trying to run a business. Putting your employees first will not only make them feel valued, but it will also make them more productive.
2. Be transparent
   If you want your employees to trust you, you need to be open and honest with them. This means being transparent about your business decisions and sharing information about the company’s finances.
   
3. Promote from within
   One way to show your employees that you value them is to promote from within. This sends the message that you are willing to invest in your employees and that you believe in their ability to grow within the company.
4. Invest in your employees
   Investing in your employees shows that you value their development and are willing to invest in their future. This can be done through training and development programs, as well as tuition reimbursement.
5. Communicate
   Effective communication is essential in any business, but it’s especially important in a values-based company. You need to be clear about your company values.
   
   

• But how do you ensure that your values are more than just words on a page? 
• How do you make them part of your company DNA?

1. Practice what you preach.
   Your employees are watching you. If you want them to live and breathe your company values, you need to do the same. Walk the talk by modelling the behaviour you want to see in your team.
   
2. Communicate, communicate, communicate.
   You can’t embed your company values if your team doesn’t know what they are. Make sure everyone understands your values and how they fit into your company culture. Communicate your values often, in both formal and informal settings.
3. Put them into practice.
   Your values should guide your day-to-day decision-making. When you’re faced with a difficult decision, ask yourself: which option aligns best with our values? This will help to ensure that your values are more than just words on a page.
4. Reward and recognize

1. What are company values? 
   Company values are the beliefs, philosophies, and principles that guide the actions and decisions of a company and its employees. They shape the culture and define the character of the organization.
2. Why are company values important?
   Company values are important because they provide a framework for how employees should behave and make decisions. They help create a cohesive and aligned organization and can be a powerful tool for attracting and retaining top talent.
3. What are some examples of company values?
   Some examples of company values are integrity, accountability, teamwork, respect, and excellence.
4. How can company values impact employees?
   Company values can impact employees in a number of ways. They can help foster a positive work environment, improve communication and collaboration, and increase employee engagement and satisfaction.
   
5. What role do company values play in the success of a business?
   Company values play a vital role in the success of a business. They can help guide strategic decision-making, inspire employee loyalty and motivation, and build customer confidence and trust. 

Business requires a basic understanding of financial statements.  The purpose of business financial statements is to provide information about the financial condition and results for an organization.  Financial statements provide information about an organization’s assets, liabilities, income and or retained earnings.

Income Statement (also known and Profit & Loss Statement)

The income statement is one of the most important, as it provides a snapshot of a company's profitability. In this post, we'll take a closer look at what an income statement is, and how it can be used to assess a business's performance.

An income statement, also known as a profit and loss statement, is a financial document that outlines a company's revenues, expenses, and profits over a specific period of time. This information is used to assess a business's financial health and performance.

The income statement can be used to assess a number of different things, such as a company's ability to generate revenue, its operating costs, and its overall profitability.

Additionally, it can be used to compare a company's financial performance over time, or to compare it against other businesses in its industry.

When reading an income statement, it's important to keep in mind that there are a few different ways to measure profitability. The most common metric is net income, which is measured as revenues minus expenses. However, there are other measures of profitability, such as gross margin and operating margin, which can provide additional insights. No matter how you choose to assess it, the income statement is an essential tool for understanding a company's financial health. 

By understanding what an income statement is and how it can be used, you'll be better equipped to make informed decisions about your business.

Balance Sheet

The balance sheet is another financial statement that business owners need to be aware of. The balance sheet provides a snapshot of a company's assets, liabilities, and equity. This information is used to assess a company's financial position.

The balance sheet can be used to assess a number of different things, such as a company's liquidity, its debt-to-equity ratio, and its working capital. Additionally, the balance sheet can be used to compare a company's financial position against other businesses in its industry. By understanding what a balance sheet is and how it can be used, you'll be better equipped to make informed decisions about your business.

In order to make informed decisions about your business, it's important to understand the different types of financial statements. These statements can provide valuable insights into a company's profitability, operating costs, and overall financial health. 

By understanding what each statement is and how it can be used, you'll be better equipped to make informed decisions about your business.

Cash Flow Statement

A cash flow statement is one of the most important financial statements for a business. A cash flow statement tracks all the money flowing in and out of a business. This is important because it allows business owners to see whether they are making or losing money.

There are three types of cash flow:

• operating,
• investing, and
• financing.

Operating cash flow is the most important, because it shows whether a business is generating enough cash to pay for its day-to-day expenses.

Investing cash flow is important for businesses that are looking to grow, because it shows how much money is being reinvested back into the business.

Financing cash flow is important for businesses that have debt, because it shows how much money is being used to pay off debts.

Why are business financial statements important to understand?

Financial statements are important to understand for a variety of reasons. 

Firstly, they provide insights into a company's overall financial health. This is important for both shareholders and creditors, as it gives them an indication of whether or not the company is a good investment. 

Secondly, financial statements can be used to identify trends and make predictions about a company's future performance. This is important for managers, as it allows them to make informed decisions about where to allocate resources. 

Finally, financial statements are also a useful tool for tax purposes. They can be used to calculate a company's tax liability and to determine whether or not it is eligible for certain tax breaks.

Business Lending: How to banks use financial statements for business credit assessment?

Banks use financial statements to get a clear picture of a business's financial health. This information helps them determine whether or not a business is a good candidate for a loan.

The first step in credit assessment is to examine the business's balance sheet. This document provides a snapshot of the business's assets, liabilities, and equity. The goal is to identify any red flags that could indicate financial problems.

Next, banks will look at the business's income statement. This document shows how much revenue the business has generated and what expenses it has incurred. This information helps banks determine if the business is generating enough cash to repay a loan.

Finally, banks will review the business's cash flow statement. This document shows how much cash the business has on hand and how it is being used. This information helps banks determine if the business has the financial resources to repay a loan.

By carefully reviewing a business's financial statements, banks can get a clear picture of the business's financial health. This information helps them determine whether or not a business is a good candidate for a business loan, business overdraft, revolving credit facility, term loan or commercial mortgage.

We aim to deliver much needed capital to start-ups and SMEs

Banks sometimes fail to recognise the very real benefits of SMEs in comparison to larger companies. Their comparative lack of resources makes them far less likely to indulge in tax avoidance and other unethical practices and SME culture often lends itself to helping keep the UK’s economy on track, with owners and managers at the helm who possess all the desirable attributes which have always benefitted commerce and industry, and by extension, the world of finance. However, this misunderstanding is not one-sided and steps are required to help mend relations between the two.

The Future of SME Lending

To stand the best chance of wooing banks, SMEs need to stick to business facts and develop a keen understanding of the loan application process. They must prepare realistic figures, actionable business plans and recognise the risks that their venture may pose. Banks meanwhile must become clearer when defining their criteria. Adding a personal touch would go a long way towards helping to recuperate the image of banks in the eyes of SMEs, and likewise, ensuring watertight applications would help SMEs achieve their goals with banking assistance. 

We aim to deliver much needed capital to start-ups and SMEs