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:

State opens new round of small business aid  Pacific Coast Business Times

Market Makers Play a Significant Role in Reverse Mergers

One overlooked individual in the process of taking a company... Read More

Why Clean Mobile Homes for a Business?

Manufactured and Mobile Home owners know that the weather this... Read More

Winning in Business - Lessons from Lance Armstrong

Lance Armstrong this week won an unprecedented 7th Tour de... Read More

Top 7 Small Business Resources for 2005

If you want to start a business in 2005, and... Read More

Women and Small Business

In the book Women and Small Business author gives all... Read More

Private Investigator Tactics

A Private Investigator is a professional trained in the art... Read More

Dont Let Your Small Business Fall in the FDCPA Trap

When someone owes your small business money, you certainly feel... Read More

A Business Plan Is Not Worth A Cracker To A Struggling Business - A Plans The Last Thing It Needs

Before you start a business we encourage you to prepare... Read More

The Perilous Franchise Agreement: What Did You Sign?

Purchasing a franchise has become one of the most popular... Read More

Advertising - For Small Businesses (Part 2)

How to do itPeople skim through newspapers and magazines and... Read More

Pet Grooming Business

Do you like animals? Would you like to work for... Read More

Attributes Of Companies You Don?t Want To Buy!

There are no "rules of thumb" in the pursuit of... Read More

Passion Is Key To A Successful Business

Passion. Passion alone can make your business successful. As an... Read More

Banking and Company Credit Card Policies for Small Business

Does your small business have a banking and credit card... Read More

Small Business Success - It?s a Matter of Confidence

I was floored! I couldn't believe what they were saying!... Read More

Franchise Companies Come and Go

Each day we hear of companies entering the franchising industry.... Read More

How to Give Informative Talks

Why should you do informative talks to smaller groups?Informative talks... Read More

Consistency with Janitorial and Cleaning Businesses

Consistency is a huge word when operating your business. I... Read More

Old Data in Database Marketing Software

Database Problems in MarketingI have been working on a direct... Read More

Retail Customer Opportunities for Pressure Washing Companies

Pressure washing companies must look for customers in the retail... Read More

FTC Adding to the Franchise Rule

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

Explode Your Consulting Income

Here are just a few ways to increase and diversify... Read More

Franchise Buyers from Hell

I ran a franchise company for many years, a car... Read More

Aircraft Washing Business Tip - Interior Private Jet Cleaning

Aircraft Interiors of personal and corporate jets have hundreds of... Read More

10 Cardinal Rules for Business Growth

After over 30 years of participating in hundreds of businesses,... Read More