Small business owners can relieve a lot of their own cash flow problems, according to Caroline Jordan, small business advisor and author. "Small business owners have more control over their cash flow than they realize." says Jordan.
To help you get a jumpstart on solving your own cash flow woes, Jordan offers a free, "Cash Flow Master checklist" that you can get by sending a blank email to TheJordanResult-110571@autocontactor.com. Jordan also suggests the following tips to help you understand why cash flow problems plague 66% of small businesses.
1. Avoid the dreaded "Fly by the Seat of Your Pants" accounting method.--Businesses need to systematically track income, expenses, accounts receivable, and accounts payable. If you only know how your business is doing once a year at tax time, you're bound to end up deeply mired in the Cash Flow Swamp.
2. Developing "Strength in Numbers"-Once you have your accounting system in place you need to learn what the numbers are telling you and how to use those numbers to manage and grow your business.
3. Keep tight control of credit-Business owners can get themselves in credit trouble two different ways; poor credit granting practices and shortsighted use of credit from banks, credit cards, and vendors.
4. Be sure your Receivables and Payables "play nice" together-The money owed to you by your customers should arrive in time for you to pay your vendors and your employees. When your customers take 60 days to pay and your vendors want to be paid in 30 days, you can quickly end up with a Cash Flow Crunch.
5. Make decisions based on Cash Flow not Profit-Many businesses that fail are profitable when the doors close. What those businesses don't have is CASH. When you pursue that big, juicy contract or think about hiring another employee, always ask yourself "What will this do to my cash flow?"
6. Don't forget your debt to society- Some bills are easy to forget. Bills like sales tax, payroll taxes, and estimated taxes. Ignoring them doesn't make them go away. Planning ahead makes the bite easier to take and keeps your from suffering Tax Day sticker shock. Scrambling to find money for taxes causes major cash flow problems.
7. Don't spend your company's future on a speed boat-Everybody loves toys. Don't make the mistake of thinking all the profits of your business are "fun money". You've heard it many times from personal financial planners that you should have enough cash put aside for six months of expenses. This is true for your business, too. Sales ebb and flow. Expenses rise. Customers leave. Vehicles break down. Computers fry. The number one rule of small business is "Stuff Happens". Having a reserve of cash keeps your cash flow from tanking every time a new challenge appears.
Caroline Jordan, MBA is the small business Cash Flow Master. Get more free cash flow resources by visiting http://www.TheJordanResult.com/mastering.html a>
Just when the entire state was kissing Wichita goodbye, economically... Read More
Most smart entrepreneurs and all large corporations have Employee Relations... Read More
"So what?" is a lovely question.It can lead to a... Read More
One of the biggest excuses franchisees of home based and... Read More
No matter your age or station in life, we all... Read More
You bet it's worth it. Publicity via news releases, along... Read More
The choice to incorporate a small business in Florida has... Read More
So you want to start a business but you don't... Read More
Many new ventures are preoccupied with all the money they... Read More
A common hazard faced by new entrepreneurs is a lack... Read More
Small business success is very similar to learning to walk,... Read More
Support is critical for your small business survival. You may... Read More
Most pressure washing companies never look into some of the... Read More
Cash flow. To stay in business, you've got to keep... Read More
As small business owners we're in business to make money... Read More
Tammy, a skilled and gifted horticulturist, called me to discuss... Read More
Many have not experienced a fire up close. One year... Read More
KEEPING INTEREST HIGH: Supervision is key to the success of... Read More
Nothing can drive a business down faster than customers who... Read More
Here are some of the questions that you need to... Read More
Owning a business is a challenging endeavor. If you're like... Read More
You've heard it before; we're living in an information age.... Read More
Most small businesses incorporated in 2005 will fail by the... Read More
Do you sometimes find yourself just going "through the motions"... Read More
If you don't know what a Virtual Assistant (or VA)... Read More
aj construction and remodeling niles master bedroom addition over garage grayslake ...Let me get right to the point. The single most... Read More
Perhaps you are building a new home office or you... Read More
We all know that competition is an ugly word but... Read More
What's your job profitability? Do you know?Many business owners are... Read More
Running a business on the net these days can be... Read More
With the massive explosion of start-ups and home businesses developing,... Read More
-- The One Pager Shortcut Series --People do business with... Read More
Everyone is talking about small businesses. In 1993, when it... Read More
Pressure washing companies must look for customers in the retail... Read More
CONSIDERATIONS FOR YOUR INTERN: Specify the number of hours the... Read More
Bookkeeping?the "dreaded" word is something we all have to worry... Read More
A recent survey showed that only 28.7% of small business... Read More
What is the best time to expand a mobile car... Read More
Where do you look for the appropriate alliance?One of the... Read More
A thing worth doing is worth doing badly. Yes I... Read More
When a regulator finds a target to go after to... Read More
What is the satisfaction & expectation review of the business... Read More
We all know that a building has to have a... Read More
Concrete Roof Tile Business: During the 2004 summer season, storms... Read More
Articles abound advising the business community how to properly screen... Read More
Anyone in business today realizes both the natural dependency on... Read More
Over regulation of small business is so intense it is... Read More
The key to organizational focus and helping those who need... Read More
What could Seinfeld possibly have to do with marketing a... Read More
Why would you use an event pass?Event passes are often... Read More
Small Business Small Business |