You know you need a location, financing, market research, and maybe investors. Getting started will not be easy, and it will take time to become profitable. While you might be new to entrepreneurship, you are not stupid. You do not know everything however, and following are three things you may not know about cash flow.
1. Financials Don’t Really Matter
Well, relatively speaking. They matter, but even if your balance sheet is stellar and your income statement is pristine, if your cash flow is stuck you can still crash and burn. You absolutely must keep the cash flowing in to be successful. If the cash is all flowing out with none flowing back in, you are in trouble.
2. The Budget is Not for Play
It is absolutely for real. You must have one, and you must stick to it. It is your number one tool for keeping cash flow in check. Know how much cash you have at all times. Know what is coming and what is going, and do not spend more than you should. It sounds simple and it is, but some find it so hard.
3. You Need a Backup Plan
There are going to be gaps in cash. There are going to be times when you have to bridge a gap in order to stay afloat. The number one key is to keep these times as few and far between as possible with good cash management. A good budget that you stick to and solid collection practices are what has to be done on a daily basis. You must have a plan B for those times when the unforeseeable happens. This may be a business credit card, a line of credit, or even a merchant cash advance loan. Whatever the case, having a plan in place can make it easier to take action when action is needed.
Whatever your backup plan may be, Biz2Credit can help. Our network of over 1,300 lenders offers merchant cash and capital, small business credit cards, lines of credit and more to small business owners just like you. Visit Biz2Credit today to find out more.