Small Business News: Cash Flow Tips and Basics

The key to small business success has always been cash flow. With enough cash flow a small business can expand on its own with less need for credit or outside investment. Good cash flow gives small business owners and entrepreneurs the luxury of controlling the best use of their resources. It also lets them know when it is time to grow or to alter their business model meeting new demand or bringing in new customers. A challenging economy has made attention to cash flow even more critical. Here’s a look at the landscape and how small business owners can and should respond.

Trends

Cash flow is the key. If there is any legacy left behind for small business to really deal with after the recent economic recession it is probably not just the credit crunch. If anything, according to this recent article on small business issues emerging from the recession, it is cash flow troubles with suppliers demanding payment more quickly and customers holding back payments as long as possible. How are you responding? Bloomberg Businessweek

Don’t make a move without boosting your bottom line. One way to respond to interruptions in your cash flow is to alter your business model, perhaps with new products or services, that will boost revenue coming in your door. A few words of caution from CFO Ken Kaufman, however. Make sure any “pivot” your business makes results in more cash flow. It’s a simple but important principal while trying to remain in the driver’s seat in your business. CFO Wise

Improving your existing cash flow with tough changes. Of course, expanding or altering your business model isn’t the only way to boost cash flow. A disciplined look at your existing system may show many places where efforts can be made to boost cash flow dramatically. Check out this important post laying out five tips that will increase your cash flow and make the necessary changes now. Open Forum

Tips

Positive cash flow key for your success. They key to small business success is to develop a positive cash flow for your business. And the best way to do that is to put systems in place in your business to guarantee that regular payments come in on time. If you haven’t got a system in place, don’t sweat it. It’s never too late to make the necessary changes in your business to bring your small business to positive cash flow success. Succeed As Your Own Boss

Do you want better cash flow in your business? Check out some of the simple tools in QuickBooks that allow you to manage cash flow for your small business. You may already be using QuickBooks as a simple bookkeeping software in your small business. But did you know that tools like the Accounts Receivable Aging Summary report can help you do so much more. Peter MacDonald of Baseline Business Services has more. Oakville Business Network

Global

Online banks launch platforms to aid with small biz cash flow. A New Zealand-based bank may serve as the model for a move to serve�an expanding�market�of small businesses in need of cash flow. As many times as cash flow and credit needs among small businesses have been discussed in the media, it is amazing that banks�have taken so long to see�the opportunity here. This story may�reveal both as a�resource for small businesses and a wake up call�for the�banking industry.�nzherald.com.nz

From Small Business Trends Small Business News: Cash Flow Tips and Basics

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