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Is Your Business Coming up Short in the Cash Department?

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Man using scissors to remove the word can't to read I can do itRunning your business might seem at times like more challenges than it is worth.

That said always remember why you likely got into business in the first place.

For many business owners, it was to grow something they created, allowing them to be their own boss and make some money along the way.

Ah, the money part.

In many instances, it is the lack of money that leads one to have to close down their businesses sooner rather than later.

So, take a look at your business operations to see if you’re in fact coming up short in the cash department.

Meet Financial Challenges Head-on

So that you can meet any financial challenges head-on, remember these tips in running your own business:

  • Don’t get in over your head financially – The biggest risk one takes in starting and running their own business is getting in over their heads financially. As an example, someone wanting to open a small eatery takes out a significant loan, not to mention taps into some of his or her savings, perhaps even gets family or friends (see more below) to invest in this dream entrepreneurship. In doing so, they must hope that the establishment does well sooner rather than later. In the event it does not, they could find themselves in severe financial difficulties and not even turn a profit along the way. If you are in need of fast cash for your business, it is important that you check around to see which establishment will give you the best deal, that is a deal that does not leave you handcuffed when it comes to your overall financial health. In the event your business is doing well and it might be time to expand, the same rules of commonsense apply when seeking cash. Always make sure you do your research before settling on a financial establishment to provide you with the cash infusion your business needs;
  • Family and friends – Some soon-to-be or struggling small business owners are inclined to turn towards family and/or friends for a financial investment in their business at some point. So, is this a smart or bad decision to make? On the plus side, you know where the money may be coming from. There is also more likelihood that someone close to you is not going to charge you an arm and a leg in possible interest fees. On the down side, there is always the possibility that such a financial arrangement could curtail a close relationship in the event things go bad and/or you are slow to pay them back the money they loaned or invested in you. Even when it is someone close to you, be sure to draw up an official contract when an exchange of money takes place. In doing so, you acknowledge that the person or persons have loaned or invested money in your business, just as a financial provider would be doing. If something goes wrong, it is imperative that those who helped you get all of their money back;
  • Recognize red flags and react – Finally, just about every small business goes through some ups-and-downs along the way. That said it is important that business owners know what red flags to be on the lookout for. A nosedive in the overall economy can be the first harbinger of bad tidings to come. Keep in mind that when the economy heads south, consumers typically have less money to spend. With less money to spend, they are less inclined to go on buying sprees. For example, if your small business is running a small eatery, one of the first things consumers typically cut back on when the economy is down is going out to eat. Another red flag is when food prices start to going up rather quickly. Lastly, if your health insurance costs to cover you and your employees suddenly explode, this can be another sign of trouble on the horizon. Always keep your ears and eyes focused on the overall economy and what is happening in the real world.

Running a small business is one of life’s greatest dreams for millions of people.

If you are one of them, do you have the business savvy to make your cash flow?

Photo credit: BigStockPhoto.com

About the Author: Dave Thomas covers business topics on the web.

Avoid Falling Behind on Collecting Customer Payments

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Credit Check 1There are various things that can send a business into a financial frenzy.

One of the more frustrating avenues for businesses to travel down is when customers do not pay their invoices on time.

For some customers, it is a simple slip of the mind, something that can be corrected in a short period of time.

On the other side of the coin, some customers will purposely delay paying bills, be it because of financial issues of their own or they simply do not want to pay for the products or services they purchased.

So, what is a business to do when a customer is late with a payment?

Get the Money You Deserve

For your business to stay on top of meeting its financial needs, there are a number of actions you must make sure stay regular and relevant.

These include:

  • Timely invoices – Are you getting your invoices out to customers on time? If not, why is that? Falling behind on invoicing customers presents several problems, most notably the fact that you are not going to get paid on time. When that happens, it sets your finances up for potential peril. If you don’t have someone in your office dedicated to accounting, invoicing etc. change that moving forward. Some companies will outsource their invoicing needs, thereby leaving them with one less major task to have to perform in-house. While all customers not paying in-person for their products and/or services are expected to meet the payment deadlines, you can’t expect them to do so if your invoicing techniques are less than stellar. Finally, make sure the due day, any late fees that will accrue etc. are clearly spelled out each and every time you invoice a customer;
  • Seeking help – If you’re finding too many customers are not getting their payments to you on time, you shouldn’t wait for the ship (your business) to start taking on water. There are options out there for you, including receivable factoring companies. For those who do not know, such companies will in essence give you the cash (in advance) you need (the money that the customer was supposed to pay you) up front, in turn “buying” the unpaid invoice. The receivable factoring company then pursues your original customer in order to get them to pay up. In order to find the best factoring company, look to not only word-of-mouth referrals, but also the Internet (see more below);
  • Surf the Internet – One of the best ways to locate a receivable factoring company to assist you in receiving the money owed you, the Internet. Any company that is of any stature in today’s business world has a website. With that website, companies can provide a laundry list of their services, how they stand apart from others in their line of work, and much more. Visit a number of receivable factoring company websites to see which one or ones might best suit your business needs. You can also look to their social media initiatives on sites such as Facebook, Twitter, LinkedIn, Google+ and others. Some in this line of work will even offer videos on sites like YouTube, explaining and demonstrating what they do to assist businesses like yours;
  • Reviewing your invoicing process –Finally, when was the last time you reviewed how you go about invoicing customers? If it has been a while now, and if your invoicing operations are cause for concern, step back and review the process. It could be something simple that needs fixing; then again, it could prove to be a major change in the way you go about things. Either way, this part of your business is too important to take for granted. When your customers do not pay their bills on time, you are the one who suffers. Yes, it could end up hurting them over time, especially if they end up being reported to a collection agency, but a fair number of customers probably don’t sweat such details.

So that your company doesn’t develop a sizable financial debt now or in the future, make sure you avoid falling behind on collecting customer payments.

Photo credit: BigStockPhoto.com

About the Author: Dave Thomas covers business topics on the web.

What Practices Keep Your Business Humming Along?

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Jobs Job Career Occupation Human Resource Recruitment ConceptIn today’s business world, companies have as many opportunities as ever to become prosperous and go on for decades to come.

On the other hand, many companies can also see their dreams go up in smoke, albeit through bad economic times, improper job hires, marketing and advertising campaigns that go astray etc.

With that in mind, what are you specifically doing to make sure your business keeps humming along?

Don’t Take Business Success for Granted

So that your brand can always have the upper-hand when it comes to business success, know what your strengths and weaknesses (if any) are.

For the man or woman running a business, it is important to make the right decisions at the right times.

Among those decisions can be deciding if either PEO or ASO services are best for your company.

In the event you’re not fully up to speed on one or both of these services note the following….

PEO services can assist your brand with the all-important aspect of human resources.

Face it; your business (and many others for that matter) can at times have issues regarding employees. When those happen, having a sound HR regimen in place is critical.

Your HR rules should be in place from day one of an employee joining the company.

Whether in a publication or provided online, the HR information should include important items involving work hours and responsibilities, if/when an employee is eligible for health insurance benefits, and more.

Meantime, ASO services are also important for business owners, so know them from start to finish. You need to be sure your company is not missing out and/or cutting corners on various tasks at hand.

ASO services typically work with business owners in the all-important areas of payroll and tax filings.

In the event you have a midsize to larger-sized business, keeping your payroll in order and on time can prove tricky to some business heads. Having the ASO service available can be a great relief, especially since you want your employees to be paid on time and with the correct amount of compensation.

Meantime, one task that can keep business owners up at night is making sure their taxes are done on time in the spring, not to mention correctly. Once again, the above-mentioned service can be quite fruitful in making sure you meet all your tax obligations.

Mid-Term Business Report Card

So, can you say with the utmost confidence that your business is where it wants to be nearly midway through the year?

If not, check to see if you are falling short on these areas:

  • New hires – Have you been making the best of hires in recent times? If not, consider changing the way you go about the hiring process in the first place. Some companies opt for experience over personality, others do the reverse. Always look to get the best of both worlds when hiring. It doesn’t hurt to have one or more of your better employees’ sit-in on some interviews. This way they can provide you with some solid feedback on if he or she is the best candidate to join the team;
  • Promotional campaigns – Whether it is advertising or marketing, are you doing everything possible to put forth the best campaigns each and every time out? Yes, you may have shoe-string budgets for one or both areas, but you need to get your brand’s name out in front of the public as often as possible. If money is tight, look to more “free” marketing and advertising opportunities. Even though it can cost you in terms of getting the right individual or individuals to post for you, using social media can be relatively inexpensive, not to mention successful. When it comes to social networking sites, your brand should be all over the tops ones, ones like Facebook, Twitter, Instragram, Linked In etc. Use social media to not only promote your various marketing and advertising campaigns, but also to listen to what the public is saying about your business.

From working with the right service personnel (PEO, ASO) to hiring the best workers, there are many facets of your business that you can do correctly from day one.

As a business owner, your number one job is to keep your business humming along, allowing you and your team to regularly see success right in front of your eyes.

Photo credit: BigStockPhoto.com

About the Author: Dave Thomas writes about business topics on the web.

Is Your Organization Financially Sound?

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ID-100262910If you are planning to start a business or nonprofit organization, one of the biggest challenges that you will face is securing funding.

There are many ways to get funding for your venture, and you can determine which funding option best meets your needs by doing some research.

Here is a look at some of the funding options that are available….

Loans

Getting a loan is the most common way of raising money for a new business.

One thing you can do to find a suitable loan opportunity is to contact the Small Business Administration (SBA).

There are a number of specialized loan options for you to choose from, ranging from startup loans to microloans. SBA loans are usually easier to secure than bank loans because they have less stringent requirements.

If you decide to get a loan from a bank, it is advisable that you start with smaller banks in your locality. These banks will have a better understanding of how your business will fit into the local landscape.

If you are starting a non-profit organization, you can try to get a loan from funding sources such as the Nonprofit Finance Fund, as well as banks and other financial institutions.

Grants

Grants are usually offered by the public sector or charitable organizations, and they do not have to be repaid. Since they are pursued by many organizations, they are extremely difficult to secure.

Grants can come in many forms, including business startup grants, business expansion grants, research grants, financial education grants and others. There are grants that are specifically offered to aspiring owners or owners of certain types of organizations, as well as demographic groups such as women, minorities, single parents and others.

As such, it is a good idea to define your niche before you apply for a grant.

You can increase your chances of getting a grant by creating a detailed business plan that shows how your organization will stand out from others.

Federal, state and local governments offer a wide range of grant programs for businesses and nonprofit organizations, and you can find out about these grants by doing research on the Internet or contacting your state or local government offices. Grants can also be obtained from organizations such as the National Financial Educators Council.

As the following article shows, this organization offers financial literacy grants and funding to help organizations further their financial education initiatives.

Crowd-funding

Crowd-funding is becoming an increasingly popular method of obtaining funding for starting businesses and nonprofit organizations.

Presently, there are many crowd-funding websites that provide excellent platforms for organizations to locate startup funds. However, the increased popularity of crowd-funding also means greater competition.

In order to raise enough money for your start-up, you need to devise effective strategies to attract the attention of investors.

Securing funding for your new business or nonprofit organization does not have to be a complicated task.

If you can create a good business plan and make a great pitch, you will significantly improve your odds of getting the funding you need.

Photo credit: Image courtesy of iosphere at FreeDigitalPhotos.net

About the Author: John McMalcolm is a freelance writer who writes on a wide range of subjects, from social media marketing to Cloud computing.

Credit Reports Matter for Businesses and Consumers

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credit-history-represents-debit-card-and-bankcard-100297005Whether you run a business or are just your everyday consumer, you more than likely know how important your credit history is, especially when it comes to meeting your financial needs.

For the small business owner, one’s credit score is very important in order to solidify yourself as being financially sound, most notably in the event you need to acquire a small business loan.

For the typical consumer, a solid credit score rings important when trying to get a new or used car loan, a loan to buy a home and much more.

With that in mind, do you truly know whether your credit report is thumbs up or thumbs down?

Obtaining a Loan or Credit Card

Typically the top reason you want a positive credit score is when it comes time to try and obtain a loan. The same holds true in looking for your first or an additional credit card.

Whether you get your information from CreditSesame.com or another such provider, your score will go a long ways in determining whether you get the funds you seek.

For starters, do you know where you stand when it comes to your credit score?

While the number range can fluctuate to a degree, the following scores mean:

  • 630 or below (Bad credit) – This range means you likely have missed some credit card payments, you have no credit card history, or you at some point filed for bankruptcy (personal reasons such as high medical bills and/or a small business that has gone under). One of the down sides to numbers in this range is that you will have to deal with larger interest rates and fees moving forward;
  • 630 to 689 (Average credit) – This range puts you in with millions of other Americans. While not the worst, your credit could be better if you did away with a sizable portion of bad debt hanging around. Numbers in this range can make it difficult to get a loan;
  • 690 to 719 (Good credit) – This range allows you to be eligible for a variety of different credit cards, with lenders also viewing you as a good risk in most cases;
  • 720 to 850 (Excellent credit) – This range is as good as it gets for consumers. Many will have the opportunity to receive cards that offer great rewards.

Check Your Report in Detail

When you get a copy of your credit report, make sure you go over it with a fine tooth comb.

Look for any inaccuracies, especially given today’s world of identity theft.

If you find something amiss, reach out immediately to the fraud departments of those you do business with and have your account placed under review, making sure no money can be withdrawn until the matter is cleared up. You should also have a security hold placed on your credit report.

Whether for personal or professional use (running a business etc.), your credit report and your history of handling credit will go a long way in determining your financial future.

Photo credit: Image courtesy of Stuart Miles at FreeDigitalPhotos.net

About the Author: Dave Thomas writes for a variety of websites on topics such as marketing and small business.

Budget Your Business Better in 2015

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abudgeterBudgeting makes the world go around, especially if you’re a business owner.

With the New Year right off and running, there’s no better time than now to get your budget on the right track.

When it comes to better budgeting for your business, here are just a few ways you can improve your financial plan for 2015:

Make and Follow a Spreadsheet

If you don’t run the numbers as the come, it could spell trouble for your budgeting endeavors. Spreadsheets are a business’s best friend, so if you haven’t already, the New Year is the perfect time to create and follow and budgeting spreadsheet.

You’ll want to make sure your spreadsheet updates are part of your daily routine, so put aside a little time each day for your budget.

If you wait until the end of the week or month to update your spreadsheet, it’ll make finding budgeting errors complicated.

Cut Costs Wherever Possible

Just because your business isn’t over budget doesn’t mean you can’t use the New Year as an opportunity to cut costs. No matter how small your budget is, there’s always room to reduce business costs.

Whether you change suppliers to reduce delivery charges or you simply use less paper in the office, every little bit counts.

If your business has unnecessary costs, chances are they’ll quickly pop up in your budget breakdown.

Assess Regularly

Having a budget is one thing, but following it is something else entirely. Assessing your budget regularly is the best way to stay on top of your business’s finances.

As the following article shows, you can keep track of your finances with a free budget template, which will take the guesswork out of the budgetary process.

Budget templates are great tools for easily tracking your daily, weekly, and monthly spending habits.

The best part is budget templates are available for all of your mobile devices, so you can check your business’s finances on the go.

Leave a Little Wiggle Room

Your business should never live above its means, which is why it’s so important to leave a little wiggle room in your budget.

You never know what’s around the corner for your business. Some extra financial cushion will ensure you don’t have budgeting issues during slow periods or when unexpected costs arise.

In terms of wiggle room, you don’t need a massive amount. A good rule of thumb is to keep 3 to 5 percent of your overall budget open each month.

If you find you don’t need that much cushion or you need to allocate those expenses elsewhere, you can adjust your wiggle room accordingly.

Set Realistic Goals

As your business bid farewell to 2014 and entered 2015, it’s important to set realistic budgetary goals.

Numbers change all the time, so keep this in mind when setting up your budget, be it for employee costs, advertising, marketing, supplies and whatever else you need to efficiently and effectively run your company.

In other words, don’t create a budget that’s so hard to follow that your business struggles just to meet its financial objectives.

If you’re ready to revamp your business’s budget for 2015, keep in mind the financial pointers above.

As a business owner, how do you stay within your budget each year?

Photo credit: Image courtesy of Stuart Miles at FreeDigitalPhotos.net

About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including finance and small business.