As a strategy and finance turnaround consultant, I have worked with many companies in crisis – usually one triggered by cash flow problems. The company’s bank account is heading toward the red and the business owner wonders how to meet future expenses.
Cash flow crisis require fast action and the first step is to look closely at the financial statements. The income statement and balance
It's OK, at some point, every business owner feels it. It starts with a tightening of the chest. Then there's the ache in the pit of your stomach. And a fuzzy feeling in your head.
Why? It's almost payday and you're short on cash.
First, breathe. Stressing out won't put cash in the bank. Now, when you can see clearly, let's get started fixing the problem: Ask yourself this one
[ By guest writer Micah Fraim, CPA ]
I’m a firm believer that every business can benefit from a certain amount of debt. Borrowing fuels growth, can get you through lean months and actually increases some measures of profitability.
Too much of a good thing, of course, leads to trouble. So how much is too much?
There are several ways to find out if your business is “over leveraged”,
As if managing your business wasn’t enough of a challenge, one day you wake up to find that your company needs a number of cars or trucks… and suddenly you are a fleet manager too. Buying a fleet is no small task and deserves some careful thought. Even having one car in the name of the business can trigger decisions and expenses you might not have imagined.
So how do you ensure
Employees won't wait for payroll and landlords don't want to hear about your cash flow when rent is due. Sure, cash is a problem. But if you have Accounts Receivable, you already have the keys to unlocking more cash. Here's how you can get the cash when you need it the most:
The Root Cause
The biggest cash problems are caused when we send expensive goods or services to our customers, and then
I'm embarrassed to tell you that I actually screamed at a salesman over the phone today. It takes a lot to get me worked up, but in this case I broke. I simply wanted to PAY this guy, and he could not take payment over the phone.
ME: "What? No invoicing? No credit card? No Paypal, SquarePay, or Intuit Payment Network?"
SALES GUY: "No. Cash or check only, payable on delivery."
Ready for part 3 in my 4-part Business Tune-Up Program? By now you know what really drives your profits; you have a dashboard that helps you keep track; and you have fixed any cash bottlenecks.
Now it's time to magnify all the good things you are doing in your business and watch the profits multiply.
How? By adding a strong financial foundation. That means relationships with bankers, lines of
Entrepreneurs are an odd lot. We pursue a passion but end up with a business. Sure, launching a company seems like a good idea at first. We start with stars in our eyes, but end up married to the dreary demands of running a company.
If your business is not helping you pursue your dreams -- by generating both income and opportunity for you to do what you love -- then it's time for a bit of
Is there a thief working in your office? I'm not talking about a convict wearing an orange jump suit. I'm talking about a well dressed employee who is, at this very moment, ripping you off for thousands -- maybe millions -- of dollars. Would you even know if your employees were committing financial fraud and embezzlement?
Corporate embezzlement and fraud are tough to spot,
You earn your money. But if you get paid by credit card, you're giving away 3% to VISA and MasterCard.
Said another way - you're paying credit card merchant fees of about 20 cents for each dollar of profit... 20% of profits just for the pleasure of getting paid.
Crazy, right? You have better uses for that much money.
Fortunately, there is a cheaper way to get paid. ACH – or the