Companies run into trouble from time to time. But why do some companies survive those troubles and others don’t? To me, there are two issues. First, it’s knowing when to ask for help. Second, it’s being willing to follow the advice that you’re given. But not everyone waits till they’re in trouble to ask for help. I remember getting a call from a business owner who said he was doing pretty well, he just wanted some help because he “didn’t know what he didn’t know.” Sometimes I meet with companies that are in a different situation. They have waited so
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I was visiting with a business owner the other day, and we were talking about his Cash Flow. The chart he showed me had a slow, but steady decline in cash flow over the past two years. I asked him what he was going to do about it, and he took a long ruler, laid it on the trend line, and pointed at the point where the cash flow hit $0. He said “That’s when I leave the company.” This raises a lot of issues. The biggest one, and one I hear from an increasing number of business owners is
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The market has hit dizzying heights, the tax bill has boosted corporate earnings, and consumer confidence is up. The effects of International trade trickle down to the small businessman. We all recognize that as the economy goes, so goes the small business. Whether your business is B2B or B2C, it doesn’t matter. You will benefit or suffer just like everyone else will, when it happens. Of course, I mean when the Recession hits. But things are going so well!! Everyone realizes that there is a business cycle. During the highs, many companies succeed in spite of themselves. Some will make
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Part of the I don’t know what I don’t know series This is seemingly a very simple topic, but it certainly can have a dramatic impact on the cash flow of your business, because it can impact both sides of your ledger – your Accounts Receivable and your Accounts Payable. What does it actually mean to give someone Payment Terms? It is the period of time that you give your customers to pay their bills. But it can be more complex than just that. When someone sends you an invoice that gives 2/10N30 payment terms, do you really know what
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cash flow
Part of the I don’t know what I don’t know series Everyone wants more cash, and a business is no different. Cash pays your employees, buys raw materials and products that you sell, and pays for the building you’re in. You need to understand how much cash you have, when it’s coming in, and when you need to spend it. Here’s a few cash flow hints: Create a Cash Flow Forecast. Every day you look at how much cash you have in the bank. You do a quick calculation in your head about how much payroll is going to be,
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