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
Lincoln Stretch rentals Alsip ..If you have ever had your antique shop or mall... Read More
As a practitioner and student of Small Business Marketing, I... Read More
Everyone loves a good story. Whether it's the story of... Read More
"If at first you don't succeed, then skydiving definitely isn't... Read More
If you are in a franchise and have a territory... Read More
A corporate shell could be liken to a house that... Read More
Writing a business plan is a fundamental step to ensuring... Read More
The difference between rates and wages is not always clear... Read More
Attorneys and Lawyers are ruining the franchise industry. It is... Read More
One way to determine your companies mission statement is based... Read More
So often small service businesses fail to exploit niches, which... Read More
In your small business debt collection laws will eventually become... Read More
Being a small or home-based business owner can be loads... Read More
Winning small and home based businesses today must continually shake... Read More
There is a great deal of abuse going on in... Read More
This year, some 700,000 American businesses will be sold. Most... Read More
During the California Recall Election, I was very interested. Without... Read More
The last time I spoke and went into a bit... Read More
Company mottos can easily be printed on a business card.Sometimes... Read More
When you feel like you're always busy working on your... Read More
Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More
Pity parties are nothing new. In fact, we do it... Read More
Q: I'm curious. What is the dumbest business question you've... Read More
Many physical therapists in private practice have the appearance of... Read More
As a specialist in getting restaurants open, it is surprising... Read More
Western Springs shuttle limo ..Articles abound advising the business community how to properly screen... Read More
Until the day I learned to play chess I loved... Read More
Everyone loves a good story. Whether it's the story of... Read More
Last summer the FTC put forth a report and then... Read More
Many government department heads are on the take. Oh they'll... Read More
One thing I have noticed in my travels to different... Read More
Sexual Harassment is a disturbing part of employment life in... Read More
Traditional advertising methods are still being used for almost 90%... Read More
Ok, so next to the taxman, your company payroll department... Read More
Do you know what your genius work is? It's the... Read More
One major issue not being addressed right now in the... Read More
The FTC- Mighty Federal Trade Commission has unilaterally decided to... Read More
Looking for ways to boost your cash flow? As a... Read More
What is the best time to expand a mobile car... Read More
Business Process Automation or BPA for short. This was a... Read More
As a business owner, you already know how important it... Read More
One of the most common horrific mistakes a business can... Read More
SBIR Corner: FFP vs. CPFF contracts:In the SBIR/STTR world, the... Read More
It's Monday morning and Connie the Consultant sits in her... Read More
Would it help you as a real estate investor to... Read More
Why are we over regulation the franchising industry, what purpose... Read More
Sacred cows take a long time to die. We get... Read More
Why does research and education play an important part of... Read More
If you run a mobile car wash, mobile fleet washing... Read More
It is imperative to have your business legally prepared. How... Read More
Small Business |