As you wrap up another year of business accomplishes and defeats, it becomes an ideal time to conduct a yearly review of business activity for future planning. Building a cushion in your bank account isn't a complicated concept, instead of having just enough to pay bills and staff it is time to have a larger amount in the account. An amount that will not only allow for timely payments of monthly billings but enough to transfer into savings.
Cash flow is the life of an organization, its a means to pay salaries, buy supplies and make stock investments. As the statistics have shown, owners who cannot efficiently manage their business cash flow are almost certain to fail. To improve cash flow and sustain growth it will be important to build a cash cushion. Having cash reserves enables companies to cope with a business disruption, deal with seasonality, and manage slow-paying customers. It allows a business to take advantage of new opportunities should they arise, and plan for future growth by having investment capital available.
Here are just a few tips on how to business owners can boost their cash flow:
Fontenot & Associates Solutions, LLC recommends identifying the method or strategies which work for your business culture. Building a stable business for long term means having sufficient liquidity and a developed and executed form of policy and procedures with clear defined goals.
Does you current budget for marketing meet expectations? - Fontenot & Associates Solutions, LLC
I don't know about you but I'm tired of the small business statistics, according to Small Business Administration research, that report, only half of new businesses survive for the first five years and only one-third of new businesses are able to survive for 10 years.
Knowing what steps one would take to solve problems when they occur, because they will occur, can go a long way toward saving your company. While any unforeseen situation can cause for a nightmare, one important factor to question all business owners should ask themselves is, do I have a solid financial footing in place? Regardless of how the business fares out, it should not make your personal financial matters worse.
Negative cash flow can push successful businesses into tailspins, with profit driven efforts rapidly changing to panic and insecurity. If done properly, business owners should be able to detect problems brewing months away and develop uniquely designed strategic solutions. Unfortunately, many business owners don't have solund processes inplace to predict, revenue, expenses, and cash flows.
Let's make note of 4 key ways to examine and maintain a positive cash flow:
As with any business, planning is essential. It's no secret that small business owners have a lot to do. The financial implications of business ownership are extensive, yet critical to a company's success. However, starting your own business could be the ticket to the personal autonomy and financial independence you’ve always wanted.
Your vision will dictate your outcome. Fontenot & Associates Solutions, LLC is experienced with developing the business tools necessary to measure business success, visit us here to get started today.
Did I mention you can also find our article about your business cash flow is on the online magazine, Business Business Business?
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