Using Interest-Only Loans to Solve Financial Woes 12/13/2007 It's no secret that interest-only loans are a big draw for a lot of people without a steady or regular paycheck, especially individuals who work on commission as well as entrepreneurs. But are interest-only loans right for you?
Using OPFM (Other People's Free Money) 07/10/2007 The term OPM (Other People's Money) traditionally refers to borrowed money that allows you to leverage investments or start a business. OPM comes at a cost because normally interest in one form or another is charged.
Checklist for Managing a Small Business' Finances 11/14/2006 Small-business owners need to be informed about every aspect of financing, from bookkeeping to cash-flow projections to securing loans from bankers. While you may not need to be an expert on each of these aspects (and, really, you can't be unless you have an accounting degree), the more you understand about these vital components of small-business finance, the greater the chance for your company's success.
No. 1 Rule for Every Small Business: Know Your Break-Even Point 09/25/2006 Many small-business owners focus on the profitability of their operations rather than spending time determining their break-even point. This is natural because profits are the ultimate essential for anyone running a nonprofit business. However, knowing your break-even point on specific products, services and the overall business operation is the key to strategic planning and maintaining and increasing profitability during the long term.
When Times Are Tough, Don't Cut These Costs 05/10/2006 Hard times can befall almost any business from time to time. When you're hit with an unexpected crunch -- due to a faltering economy, unfavorable trends in your industry or plain old tough competition -- your first instinct is probably to conserve cash.
Creating a Financial Plan for Your Small Business 11/15/2005 A financial projection, or financial forecast, is a tool you can use to see where your business is going, financially speaking. Typically, your forecast looks at your plans for the next few years and helps you understand how much money you will need to get to where you want to go, what it will cost in terms of sales, labor and so on, and how much you can expect to make once you do get there.
Keep Clients’ Financial Problems From Becoming Yours 10/17/2005 One of the biggest risks for service-oriented small businesses is the possibility that a client won't be able to pay for services rendered. But by looking for warning signs of a financially struggling client, you can stop cash flow problems before they start.
You've Lost Your Biggest Customer. Now What? 03/30/2005 It is an axiom of business that no customer is guaranteed to stay with you forever. Regardless of how loyal your customer may be, there are any number of factors that could prompt them to take their business elsewhere. It may be no reflection on the quality of your product or service; a customer might be merging with another firm that uses software or hardware that isn't compatible with your product.
Art and Science of Forecasting Cash Flow: Combination of Anticipated Cash Inflow and Outlay 02/17/2005 Forecasting cash flow can be a more complex and potentially variable task than most small-business owners think. Accuracy in cash-flow projections is important because it can help you know months in advance when cash reserves may become depleted. It's easier to prepare loan requests, balance inventory purchases and cut back on expenses such as marketing well in advance of actual cash shortages.
Extending Credit to Customers 12/30/2004 Q: I am fairly new to business and am wondering about extending credit to customers. What should I be on the lookout for?
Check 21 Could Mean Cash-Flow Adjustments for Small Businesses 10/27/2004 Small-business owners who have cash-flow problems now have something else to think about: a new law that speeds up the check-clearing process and eliminates the return of original paper checks.
Advantages of Leasing Equipment Over Purchasing 10/26/2004 Leasing equipment has specific advantages when compared to financing or purchasing with cash. A clear understanding of these can help when considering the acquisition of computers and office equipment, automobiles, machinery and other types of equipment vital to a company's operations.
How Much Cash Will You Need for the First 90 Days in Business? 10/14/2004 Many new business owners think they only need to account for their cash-flow needs up until the day they open their doors, but they need to think a bit beyond opening day. New business owners need to take a very close look at costs for the first 90 days their business is functioning.
Price Counts: Terms of the Sale 09/15/2004 The terms of a sale include the method of payment accepted by the business, the customer identification that is required, the length of time the customer has to pay and your return policy. These terms should be written up and posted so that they are clear to both your staff and your customers.
Monitor Cash Flow for Financial Health 08/19/2004 A business purchases materials and supplies, pays wages and upgrades equipment and facilities out of profits, right? Wrong, although that's what some people believe. Profits are an important source of capital for expansion and for reduction of debt obligations, as well as for the eventual ability to pay bills and meet payroll.
Don't Let the Good Times Get You Into a Debt Crunch 05/03/2004 The booming U.S. economy still seems to be churning along and this has encouraged companies of all size to take on additional debt for the purpose of increasing inventory, adding equipment, expanding operations, etc.
Building Equity 09/19/2003 Equity is all about value: what a company would be worth to someone buying it or what remains when ownership changes.
Surviving Tough Financial Times 06/24/2003 While recovery from the tight economy is under way, some small business owners have found creative ways to keep cash flowing during these tough times.
Cash Flow Maximization Methods 04/16/2003 In an uneven economy, it's vital for a small business to be able to sustain a juggling act between incoming cash and bill payment.
Working on Retainer Can Help Stabilize Cash Flow 12/06/2002 When you have a client who comes to you often, mention that it would be economically advantageous for them to place you on retainer.
Early Warning Signals of Upcoming Cash Flow Problems 06/04/2002 During shaky economies, many small businesses have periods of cash flow disruption.
So it's essential that every small company heed early warning signals that could
indicate upcoming cash flow problems.
Build Your Credit Rating While Cash Flow Is Strong 05/21/2002 Banks always want to lend money to a company that doesn't need it. Small businesses can use this to their advantage by taking out loans when cash flow is steady and in the process build credit for the times when cash flow is spotty.
Pay Yourself First 04/15/2002 Employees of mid-size and large companies usually have the opportunity to put money away for retirement through 401K plans, which almost always are automatically deducted from wages.
Avoid the Pitfalls of Having One Account Take Up Too Much of Your Billing Time 04/15/2002 Several years ago I ran into an outstanding opportunity in my career as a freelance writer and author of corporate biographies and life stories. I was contacted by the creative director of one of the large advertising agencies in my city.
How Small Businesses Can Adjust to a Slowing U.S. Economy: Part II 03/07/2002 With the long-expanding U.S. economy beginning to slow as the result of numerous Federal Reserve rate hikes during the past year, small businesses may be experiencing a changing economic environment that offers new challenges.
Creating Cash Flow Statements 03/07/2002 For a small business, no bookkeeping tool is more important than the cash flow statement, which projects cash inflows and outflows for a specific period of time.
How Small Businesses Can Adjust to a Slowing U.S. Economy: Part I 03/07/2002 With the long-expanding U.S. economy beginning to slow as the result of numerous Federal Reserve rate hikes during the past year, small businesses may be experiencing a changing economic environment that offers new challenges.