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Cash flow is one of the biggest challenges that small business owners face. One of the reasons is because usually not enough attention is paid to managing it, until a crisis hits. Small business owners are often so focused on growing their businesses and making sales that they fail to see how their operational costs are eating into their profits. Suddenly, there are bills to pay and clients haven’t paid yet; as the business owner, you have to figure out a way to get cash in fast. However, if you are diligent about managing your cash flow, you can foresee and set up contingencies for situations like that. Here are a few tips that can help you to stay ahead of the game.

Know Your Operational Costs

Right from the start you should know what it costs to run your business on a monthly basis. Certainly, there will be some variable costs that change on a monthly basis but you should still have a rough idea of what they are so you can form a budget. If you do not capture all your expenses then you are quite likely to forget about some of them. A few hundred dollars here and there can quickly add up. The easiest way to do this is to draw up a simple spreadsheet. Capture fixed expenses such as rental costs and salaries first, and then have sections for income such as stationary, telecommunications and fuel. These operational costs should form the basis of your budget. They define your break-even point of your business. Bring in less income than that and your business will be in trouble. Always know the target that you need to reach in terms of turnover.

Define Your Payment Dates

Try not to have all your expenses payable at the same time of the month. Most landlords require that you pay the rent up front yet many insurance companies, for example, will allow you to schedule your debit orders for the 10th or 15th of the month. What this does is spread the load of your payments throughout the month. Instead of having to make sure that you have a lump sum of cash available at the end of every month, you need only a portion of your expenses to be covered then and have some more time to get in the balance of your cash before the next batch is payable. It may initially seem like a mission to split up the payment dates but it can make a huge difference to your cash flow.

Be Strict with Your Debtors

This is a trap that too many business owners fall into. They do not want to offend customers and potentially lose out on their business so they bend over backwards to accommodate them and let them get away with paying late on a regular basis. Large companies often use this tactic to help balance their cash flows. The longer they can stave off paying a small business, the greater benefit to them. You don’t have to be aggressive when chasing payments. From the outset with clients, make sure that you clearly communicate your payment terms. Ideally, small businesses should operate on a cash-on-delivery basis but in many industries, this is not possible. Try to have as short a period as possible for payment. Ideally, it should be seven or 14 days. At the outset, it should never be more than 30 days. If it is seven days then clearly state this on your invoice and when you make delivery. If after the eighth day you have still not received payment, make a phone call to find out if it has been processed. If it has but doesn’t yet reflect in your account, let your client know that you will call to confirm as soon as it does. This is a polite way of letting them know that you watch and manage your cash flow closely and that they cannot get away with delaying payments.

Make Sure You Have a Wide Customer Base

Many small businesses start with just one or two major clients. While this is great initially, think of what will happen if that big client delays payment or doesn’t pay at all. How will that affect your cash flow? It is much better to have lots of smaller amounts of cash consistently coming into your business than to depend on one or two large payments every month. To have large clients is great but make sure you can break even without their payments. That way, you will always have a strong cash flow.

Let’s look at some of the most frequent mistakes made when developing a business plan:

Not a good look at the target audience

Many entrepreneurs assume they know well the characteristics of their future consumers, and tend to overlook a thorough analysis of them.

However, the analysis stage of the consumers who comprise our target market is the main phase of a business plan and, therefore, is the stage at which we should pay the utmost attention.

In developing our business plan, we must take our time to investigate and analyze the needs, desires, tastes, preferences, whims, habits, behaviors and useful features of our future customers.

Only then, based on a correct analysis of data, we devise strategies for accurate and effective marketing that allows us to achieve success in our business.

For example, based on information and analysis of our target, we can develop a product that meets your needs or tastes, set prices according to their financial capabilities, designing distribution channels which are most accessible to them, develop advertising that may have greater impact on them, etc.

Underestimating the competition

Another common mistake when preparing a business plan, is to underestimate the competition, i.e., failing to investigate and analyze in depth.

We may think that our product will be attractive and innovative, and easily draw for future competition, but we take that as our product begins to succeed and be known, the competition will hear it and not stand with folded arms.

And that’s when the research and analysis we have made in advance of the competition in our business plan, will serve as information to design marketing strategies that will enable us to cope with their attacks.

As far as developing our business plan, we investigate and analyze it to future competition, identify their main features (their main strategies, strengths, weaknesses, etc…), to analyze information and draw the conclusions which we will have arrived.

Mistaking a business plan with a budget

Another common mistakes when making a business plan is to take a business plan like a budget.

The budgeting (especially budgets of future income and expenditure) is fundamental in developing a business plan, however, develop a business plan involves much more than that, it involves analyzing objectives, design strategies, coordinate resources, industry analysis, market research, analyze competitors, etc.

Even the larger our research, analysis and development of these elements mentioned, the greater chance we have to develop more accurate budgets and in line with reality.

Being overly optimistic projections

Another error when developing a business plan, is to be overly optimistic projections.

Perhaps the creation of a new project excites us and makes us feel optimistic about it, but it is necessary when preparing business projections, we are sensible and realistic as possible.

We must not exaggerate when estimating our future revenues or sales, nor underestimate our future expenses or costs.

But on the other hand, neither should we be so pessimistic, to the point of underestimating future sales, future expenses and overstated.

We try to get in a scenario as realistic as possible, for this, good research, analysis and development of the other elements of the business plan will be necessary.

Forget the risks

The development of a good business plan greatly minimizes the risks, but does not ensure that all will go well and that there will be no problems, unforeseen circumstances or difficulties on the road.

As in the previous section, in this case we should not be too optimistic, and assume that everything will be exactly what I expected.

The truth is that it is our most comprehensive business plan; there is always the risk that things do not happen as we have planned.

As far as developing our business plan, we should consider it, and always try to anticipate and be prepared to face these difficulties.

For this we can, for example, make plans or flexible budgets, designing emergency strategies in case of failure of the first, book an emergency budget, etc…

Financially, one of the worst things you can do is to accumulate a large amount of debt. Unfortunately this can happen in a multitude of ways. Sometimes events happen that you cannot control, such as a medical emergency, or maybe you get laid off from work. Sometimes it’s just irresponsible spending on your part. But no mater which one it is, they all contribute to the financial situation you are in.

No matter how it occurred, once financial problems begin, you must take action . If you do nothing and allow your bills to accumulate each month you will only make the situations worst. This usually leads to repossessions, bankruptcy or even foreclosure on your home. You need to take action to get your spending under control and get your existing bills paid down. While this is a good thing, and most methods work, Some work better than others. You need to find the method that works best for you.

Debt consolidation firms are a good source for people who owe a large amount of money to creditors, but are unable to meet the monthly requirements. However, you must have the ability and be willing to pay some of the overdue amount each month. The Debt Consolidation Firm will pay off all your overdue debt and then set up a payment plan for the amount that was paid. Since this new loan can be paid down at a slower rate, it allows you to create a more stable monthly budget.

There really are not negatives to a debt consolidation loan once you have qualified. Late fees and other charges are elemitated as the creditors are paid and the amount owed will decrease as your payments are made. Because you will have no late fees or missed payments, you credit score should start to increase.

There is no way that taking control of an out of control financial situation could be considered bad. This action can only be perceived as a positive and mature economical thinking.

If you researching and compare the best debt consolidation services around, you will be able to find the one that meets your specific financial situation. However, it is advisable to go with a trusted and will known debt counselor before you make any decision, this way you save time through specialized advice coming from a experienced debt advisor. You will also save money by getting better results in a shorter span of time.

Everyone needs a budget of some sort. Countries have budgets, businesses do too. Although you may feel that you can’t afford to add another payment to your already thinly stretched budget, there are some things that are worth that stretch. If you are living without health insurance coverage for your family then it is time to look at your expenses. Many people don’t actually realize they are living within a budget, they simply go from paycheck to paycheck. If you take the time to look at where your money is being siphoned off to, you may be surprised.

When examining your expenses you may find surprises. For instance, we might spend our change on little things every day. Of course, this will add up fast if you dissect it or save it instead. It is easy to see where that money was going. Many people spend small amounts in a drive-thru or coffee shop. You may know what this means if you are one of those who shop like this.

Those morning trips can cost you just a little. Maybe it is only $5 for coffee and a bagel. If you add lunch to that later it could easily end up at $15 a day, just for food. Think about how much that is for the week. How about for a month. The same thing can be said of convenience shopping. Do the kids just have to get a bottled water every time you stop for gas? You may think that it is OK because it is just water after all. These invisible expenditures could amount to what an insurance premium would cost you.

You can fund other expenses if you watch your daily spending. Many of us want more. A bigger house or cooler car are some examples of this. However, we all know that these things will not make us happy. Being secure can make you happy. And so you will want health insurance in order to afford your bills in the event you are in an accident or become ill. Being secure with this kind of thing will feel good.

Looking at what you spend is sensible. If you believe you can’t afford insurance or don’t meet the criteria for assistance, you will want to try to look at your income versus expenses. This is because in the event you need sudden care or a specific procedure you need a plan. Then, after looking at this money flowing, you may find a place you can stop spending and take from there. Additional expenses laid out for a quick snack or drink might be better spent on the security you and your family deserve.

If you want your business to survive and thrive, you need to promote it. One of the easiest ways to promote any business is with business cards. However, even though they’re small and easy to pass out, business cards are also easy to throw away or ignore. That’s why you need to make yours worth looking at and saving.

Colors And Designs:

Colors and designs are good ways to make your cards stand out. However, you need to find a design that is both eye-catching and easy on the eyes, which isn’t easy. You don’t want bright colors to clash and make it difficult for your potential clients to read about your services, after all.

A Good Picture:

A good picture also goes a long way toward making your card memorable. So, you should make a point of having your photograph taken by someone who is familiar with taking business photos.

Two Sides:

There are two sides to most things in life and business cards are no exception. So, while it’s important to include a lot of information on your card, you don’t have to cram it all on the front. You can put some things on the back, too. Using both the front and back will allow you to include more information, such as social networking website URLs, while still appearing to have a simple layout.

Do It Yourself:

Now, if you have a computer, you can design all of those elements yourself. However, you should still have your cards printed professionally. In fact, you may be able to find a printing company online that allows you to download templates and use them to design your ideal business cards.

Other Reasons To Find A Print Company Online:

Of course, there are other reasons to find a print company online. One of them is to simply expand your options. If you only have one or two local print shops, you might find that they don’t fit your needs, time frame or budget. Online, though, you can choose from many different companies.

Another thing that makes printing business cards online useful is that the online companies tend to have round the clock customer support and, since they have a website, they are likely to be up to date on current technology. That means that you’re more likely to get a high quality business card that is made out of the best possible materials. When your cards are built to last, it means that you’ll get more business from them. So, spending money up front is well worth it later on.