Our lives are very different than the late sixties and early seventies when a great deal of our parents followed a prescribed path to life. The husband worked and the wife was a homemaker. You made do with the level of income and planned accordingly. The advent of the internet and the reach it can enable has allowed a very large change in culture and working practices. Families now have dual careers and the working mum and stay at home Dad are not that unusual, you could say we now don’t have a norm.
Over the past decade we’ve seen a 32% increase in side start-ups. There is a new way of people making a second living and either running it as a second income or have the desire to turn it into a full entity that takes over from the normal income streams.
Managing cash within a side business
We at Slide have openly discussed the challenges of managing cash within a business and the critical benefits that this delivers to a growing business. The side-business matches our Slide app very well. The challenges are very much the same and the budget smaller, so the need to manage cash within the side-business can have much greater effects on the personal lives of the entrepreneurs that start them.
It forces two cash flows to be managed in a very similar manner: the existing household budget and the new entity cash flow. If the new start up is self-funded (which most are) then the effect of running out of cash could result in utilities or the mortgage not being paid. That has a great effect on the personal lives of loved ones, definitely to be avoided.
Two Income Streams, One App
So maybe the solution is an aggregated cash flow that shows both the business activity and the household budget in one place – bringing the two income and spend streams together. The desire for financial independence is the driver for branching out on your own. Managing the cash in a micro-business is even more important than in a full-blown commercial entity as the effects are far greater.
If we assume that personal money is used for the funding the business, it may be that spare cash from the salary is used to fund the business. Tracking this and understanding its impact is quite crucial. Similarly, if the micro-enterprise or side start-up business begins to make a profit the effect of the profit and the entrepreneurs drawings needs to be tracked and its impact understood. I will not even go into the effect of the PAYE situation and the complexity of a deemed payment for tax purposes.
Because Slide aggregates personal and business accounts it gives the side-business runner a unique view of their financial and cash health.
Not many technologies are designed to cater for this market, in fact I believe Slide is the only software that can aggregate the personal and business information in the same place. Because we can aggregate both personal and business accounts we can give the Side business runner a unique view of their financial and cash health. We allow them to see the problems before they occur and help them resolve them. The impact on Side businesses is on the household budget. It is far more important for them to be able to see when a problem occurs than for a business that has funding options available to them. The side business matches Slide perfectly.
Find Out More
Have a look at what we do and how we build future cash from facts, not from guesses by Artificial Intelligence (AI) and patterns. We build a cashflow from within a banking app from the bank account. If any area of business needs to be closer to the bank account, it’s the side business