Help Business Owners – Practical Solutions to Solve Their 5 Biggest Challenges – Part 2

The last article we spoke about managing your time. This is is the second of five articles. Most business owners self-finance so their business will only operate as far as their cash holds out. We will show you how to find extra cash flow from your existing business and tools that make it easier to create a plan to ensure you will have the funds to achieve your goal.

Did you know that thirty percent of business owners worry about cash flow – and for good reasons. Most businesses will only go as far as their cash fl ow will take them because they are self-funded. Healthy and positive cash flow is essential to achieving success in any business regardless of how your define success – rapid growth, a valuable business, having a job you love, or the freedom to work for yourself. Cash flow is the “lifeblood” of a business, the single most important measure of your business’s health, and the key ingredient to growing the value of your business assets.

To help you stretch your money, we have outlined three actions you can take:

1. Measure, manage, and maximize your cash

2. Bootstrap more investment capital from your cash flow

3. Create a capital plan before you need capital

Seven Ways to Bootstrap Cash Into Capital

1. Speed cash receipts

2. Slow cash payments

3. Share resources

4. Match expenses to income

5. Smooth cash flow

6. Find deals

7. Invest spare cash

“Cash flow is the lifeblood of your business.” -Sam Frownie. Resources to Help You Stretch Your Money:

* Lifeblood: How Successful Business Owners Achieve Wealth, by Sam Frowine, (Authorhouse, 2006)teaches you smart money rules to help you build and protect your cash – the lifeblood of your business and the number-one measure of your company’s health.

* Business planning expert Tim Berry has authored several books that can provide you even more detail on business planning including The Book on Business Planning, (Palo Alto Press, 2000) and The CPA’s Guide to Developing Effective Business Plans, (Palo Alto Press, 2001). To read an article by Tim Berry on what happens when you don’t create a business plan, turn to page 16.