The Keys of Cash Flow
The importance of cash flow to small business can hardly be overstated, since if cash flow were to dry up entirely, almost any small business would be shut down in a very short period of time. In order to avoid disasters like cash flow gaps and interruptions, there are a few keys that all small business owners should keep in mind.
Diversify products and services
It would be a mistake to rely on a single line of products as your only source of income for a business, because if there’s any interruption in sales, or perhaps a seasonal downturn, cash flow evaporates. This is a simple business principle which amounts to not putting all your eggs in one basket, and the lesson to be learned here is that you should have several services or several products, that you can rely on for income.
Consider alternative funding methods
In this day and age, traditional lenders like banks and credit unions simply cannot meet the needs of the vast majority of small businesses. This is evident by the fact that only about 28% of all small business applications to banks are approved. There are a number of financial products being offered today by alternative lenders which might very well meet the needs of your small business. If you go online and research for only a short period of time, you will find hordes of alternative lenders willing to assist you as a small businessman, and all you have to do is match up your needs to the types of products offered by a reputable alternative lender.
Save, save, save
It’s never a good idea to immediately re-invest all profits when you have a period of upturn in your business. A much better idea is to save as much as you can whenever business is good, because they are almost certain to be offset by a number of bad periods as well. If you have money saved up to cover business downturns, you’ll be much better off because you won’t have to borrow expensive loans, or to make hasty, stressful arrangements for necessary funding.
Maintaining cash flow with FinCentral Capital
If your company is having issues with cash flow, we may be able to help relieve some of those issues. Contact us at FinCentral Capital today so we can discuss options which may be able to keep cash coming in, and keep your business operating well on a day-to-day basis.