Do you know what your business owns and owes? Do you know what your business makes and spends? More importantly – do you know what the equity is in your business or what it might be worth? It’s typical for an entrepreneur or for someone running a business to say “yes I know what we make and spend” but unlikely that they know what they own/owe and what the equity in their business is or what the value might be. Small and medium sized businesses can be so focused on surviving that they often don’t take time to see if the needle is moving in the right direction with respect to the equity or value of their business. This is unfortunate because one of the very reason businesses are started is to build value and one day be able to cash in or have that value recognized.
So where is the best place to start if you can relate to this?
In continuing with the theme from yesterday’s blog (click here) here are some ideas on how to prepare for the cash your business may need. Keep in mind that one of the unique features of a small business is it’s ability to be nimble and change quickly. Any plan for more than 12 months out could be nothing more than a guidepost in helping steer the overall strategy of a business. At ground level, cash flow matters and having a plan for the coming business quarter or quarters can relieve pressure.
Does your business need cash now? Most small and medium sized businesses have a constant need for cash because when they invoice a customer for a product or service, the customer can take a long time to pay which results in reduced cash flow.
Factoring or accounts receivable financing has been around for a long time and has been used by many businesses to address their cash flow problems. Continue reading “Does your business need cash…NOW”→