Beating the Small Business Cash Flow Blues

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 [email protected] 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

In The News:

Best Payroll Software for Small Businesses  Small Business Computing
50 Restaurant Marketing Tips  Small Business Trends
(Re)Open For Business: CI&T's Small Businesses Report | Banking  FinTech Magazine - The FinTech & InsurTech Platform

FTC Report on Franchise Rule Making; What Purpose?

The Federal Trade Commission out of the blue decide in... Read More

Earn More Money in Your Small Business by Creating a PIG

If you really want to earn more money with your... Read More

Most Franchises Are Small Home Businesses

Many of our nations 400,000 franchisees run their businesses out... Read More

Marketing a New or Small Business on a Budget

There are almost as many opinions and views on marketing... Read More

5 Tips for Hiring a GREAT Bookkeeper

Bookkeeping?the "dreaded" word is something we all have to worry... Read More

WARNING to Home Based and Small Business Who Want to Buy Television Cable Advertising

Most small businesses will not even try to advertise on... Read More

FTC Adding to the Franchise Rule

Last summer the FTC put forth a report and then... Read More

Web Based CRM Systems: Get Mobile; Get Results

Everyday more web based companies enter the business scene. The... Read More

Perception: What Are Your Patients REALLY Hearing?

Never underestimate the power of perception! Perception plays a major... Read More

Smart PR Tactics for Small Businesses

Small businesses need Public Relations, possibly more than large corporations,... Read More

Got Stimulation?

An observation while returning home from a seminar: Getting away... Read More

9 Things You Must Do To Maximize Your Chances Of Obtaining A Small Business Loan

To get approval for your small business loan application, you... Read More

Why is My Restaurant Not Full Every Monday Night?

In a quest for customers and to keep those customers,... Read More

Operational Aspects on P and L Statements of Mobile Services Businesses

What kinds of things effect mobile service businesses P and... Read More

How to Promote Yourself to Small Business Riches

You've heard it before; we're living in an information age.... Read More

Comparing Boston Area for a mobile car wash business

The Boston suburbs seem to be rich with possible locations... Read More

Bad Regulators Cost Small Businesses

When a regulator finds a target to go after to... Read More

Why You Need A Virtual Assistant

How much is your time really worth? Is it worth... Read More

Small Business Marketing Series ? Choosing a Niche Market

Many smaller businesses choose niche markets for various reasons and... Read More

How to Curb Antique Shop Theft Inexpensively

If you have ever had your antique shop or mall... Read More

Loose Lips Sink Ships - The Fastest Way to Put Yourself Out of Business

I agree that knowledge should be free, but the next... Read More

Outsourcing and Virtual Assistants: Small Business Saviors

Work smarter, not harderWhat is one of the best ways... Read More

Why are Reverse Mergers Often the Victims of Short Sellers?

There is a great deal of abuse going on in... Read More

Pressure Washing and Hospital Accounts

Most pressure washing companies never look into some of the... Read More

Do You Need the Help of a Virtual Assistant?

Running a business, whether large, small or in your home,... Read More