Cash Flow Management Can Help Your Business

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Cash Flow Management

Cash Flow Management Can Help Your Business

For a business, no matter if they are a startup business or an established business cash acts as their lifeline; it is the one area that allows a business to survive. The amount of cash that a business has at its disposal often shows the health of a business. A business, especially a start-up business would be able to survive for a while without sales or profit but without cash it will fail.

In order to give your business the best possible chance you need to have sufficient control over the cash flow that is going into and out of your business. You obviously want to have more cash going into your business than out of your business but to ensure that this is the case you need to have a good grasp of the cashflow that your business has.

A crucial element to remember is that there is a difference between cash and profit. In order for a business to make a profit it needs to produce and deliver services or goods to customers before you actually make a profit so if you don’t have the cash to do this then you technically won’t have a business left to run. If you want more evidence of these just look at the facts; the reason that most businesses fail is poor cash management that has led to a business not being able to afford to carry on and poor cash flow is the reason that the majority of start-up businesses don’t make it past their first year.

Some examples of the cashflow that will be coming into your business include the following:

1. The payment for goods/services from your customers
2. Any bank loans that you may have taken out
3. The interest that you collect on investments and savings
4. An increased bank overdraft or loan

Some examples of the cash that will be coming out of your business include the following:

1. The purchase of any stock, raw materials or tools that your business needs
2. Your staff wages, property rent and all of your daily operating expenses
3. Any repayments of loans that your business may have
4. Any dividend payments
5. Reduced overdraft facilities

For a business, whether they are a startup business or an established business cash acts as their lifeline; it is the one aspect that allows a business to survive. In order to give your business the best possible chance you need to have sufficient control over the cash flow that is going into and out of your business. You obviously want to have more cash going into your business than out of your business but to ensure that this is the case you need to have a good grasp of the cashflow that your business has. In order for a business to make a profit it needs to produce and deliver services or goods to customers before you actually make a profit so if you don’t have the cash to do this then you technically won’t have a business left to run. If you want more evidence of these just look at the facts; the reason that most businesses fail is poor cash management that has led to a business not being able to afford to carry on and poor cash flow is the reason that the majority of start-up businesses don’t make it past their first year.

In order to help you with your cashflow management it is a good idea to keep an up-to-date record of all of your cash so that you can see exactly what is coming in and going out of your business. By doing this you can find ways of potentially improving the cashflow of your business.

If you want to have a good cashflow within your business you need to ensure that your pattern of income and your business spending habits allows you to have cash available as well as being able to pay the bills on time. Cashflow depends on the timing and amounts of money flowing into and out of the business each week and month.


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Small Organizations Run the World

Small Organizations Run the World

“Why Small Organizations Mean Big Business”

As a small organization you may turn around and have these qualities as your edge to compete against the big sharks in business.

More and more small organizations are paving the way and giving big businesses a shot of their own medicine.

Tom’s character, on the other hand, moved into town to build a branch of a big chain-bookstore which offered discounted prices and a huge building, as compared to Meg’s little bookshop on one corner of the town’s streets.

Nowadays, this situation will not hold true anymore.

Her only edge is that she gives personal service, she knows her customers by name and she has a very small staff, about 2 or 3 employees.

In the end, Meg was forced out of business because her customers went to Tom’s monstrous bookshop.

Meg’s character owned a quaint little bookstore which she inherited from her mother. The prices of her books were a little steep, she makes up for it in service. She packs the books in a specialized bag, and she knows all of her customers by name.

In the movie “You’ve Got Mail”, the sub-plot aside from the love angle is that the heroine (played by Meg Ryan) was forced out of business when the big-time bookstore owner (played by Tom Hanks) moved into town.

In the movie, the reason why Meg Ryan was forced out of business is because she can not profit anymore. Her prices are steep as compared to the other big business’ discounted rates.

Here are some tips on how you can hold your own against a big business:

Small businesses have big competition.

This means that you need to know how to survive out there.

No matter what nature of business you have, it is better to learn about the competition so that you will be able to survive.

Here are some tips on how you can survive the big competition:

The better option is for you to hire a professional outside accountant to figure the returns of your investment and handle the other financial aspects of your business.

Do not spend on unnecessary business purchases and always balance your books.

Know exactly where your business is headed.

Keep a tight rein on your budget when it seems as if your cash flow is in a downward slope.

If you are one to buy on impulse or if you are the type to listen to those who sweet-talk you into purchasing “necessary” items, control yourself.

Keep your books straight.

In your day-to-day operation, make sure that you know where you want your company to be 5 or 10 years from now.

Get a third and second opinion if possible, as these impulsive buys may lead to the end of your small organization.

The fall of most small businesses start with decisions on problems which are not carefully analyzed.

Keep your business alive.

Be always aware of the trends in the industry that you are in, practice good money management and learn how to recognize potential problems before they arise.

This does not just help widen your knowledge, but it will also give you an idea of how other businesses are ran by small-scale owners.

You think that you already have a contingency plan, make sure that you have foreseen the results of a certain business decision.

In the long run, it is better to seek professional help rather than embark on a plan that could start the downfall of your business.

  • Take advantage of every free business counseling whenever available.
  • Do not be afraid to seek professional help.

Learn how to market your small organization.

  • It is about knowing who to market your products to.
  • Marketing is not about trying to sell your services and products to everyone.
  • In marketing, it is good to remember these fast facts:

If you work hard, make wise business decisions, learn how to market your small business and personalize your customer interaction, your small-scale business is sure to rise to the top.

  • Communicate with your customers.
  • Build a personalized and good relationship with your customers.
  • Do not stop the marketing process.

Remember, small organizations are big businesses these days so do not be afraid to work hard for the company that you have – not matter how small.

As a small organization, you need to routinely review the markets that you need to pursue so that you can better reach out to your customers.

Know about your customers.

This will be a great edge for you to have against the bigger companies.

They might offer discounted prices but it is harder for them to keep track of customers on a more personal basis.


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Start Your Own Business

Start Your Own Business

Grasp Your Future And Set Up Your Own Business !

If you’re thinking about starting your own business, you are probably in need of a start up loan. With a start up business loan, you can get the tools you need to make your first start the right start.

An unsecured business start up loan can get a new business owner the funding he needs to cover initial business costs, without having to provide collateral and place his or her assets at risk. With this approach, the lender can still lend an unsecured start up loan at great rates and with a variety of programs.

Applying for a unsecured small business start up loan is easy, all the business owner need to do is just go on line and submit their loan details. The lenders will refer back to you with the loan decision in a few days.

There are several options that an individual may take into consideration. You may find it’s difficult if you have nothing. If you have personal assets, the hard part is putting them at risk, and doing so is the rite of passage to both success and failure.

Collateral is often the biggest obstacle to the prospective business owner.

Not only does a new business not yet have any commercial collateral to provide; but it is asking a lot for an entrepreneur to put his hard earned personal assets at risk in order to start a new business venture. Without collateral, getting a business financing can sometimes seem impossible.

If you’re starting a business, it’s more than just a job. Starting a business requires so much more than an ingenious idea, and even more than planning, marketing strategies, and a well thought out future. How do you get start up business financing that will either advance your idea to the point where it can attract outside capital, or perhaps jump – start you into profitable operations?

Obtaining financing can sometimes be the most grueling part of starting a new business.

The loan approval process for a business startup loan sometimes seems like a maze, with stringent credit requirements, complicated business plans, and paperwork full of terms that are like a foreign language to the layman prospective business owner simply trying to get a loan. Options can be unfitting and rather slim when it comes to financing for the new business owner; unrealistic collateral requirements and proof of projected business profitability can sometime seem more like a joke than a reality.

Not only does a new business not yet have any commercial collateral to provide; but it is asking a lot for an entrepreneur to put his hard earned personal assets at risk in order to start a new business venture. An unsecured business start up loan can get a new business owner the funding he needs to cover initial business costs, without having to provide collateral and place his or her assets at risk.

With a start up business loan, you can get the tools you need to make your first start the right start.

The loan approval process for a business startup loan sometimes seems like a maze, with stringent credit requirements, complicated business plans, and paperwork full of terms that are like a foreign language to the layman prospective business owner simply trying to get a loan. Options can be unfitting and rather slim when it comes to financing for the new business owner; unrealistic collateral requirements and proof of projected business profitability can sometime seem more like a joke than a reality.

They provide new innovations, new jobs, and fresh concepts to the business industry. Starting a business requires money. Without start up capital, very few people have the resources available to launch a successful business idea.