Did you know that about half of all small companies go out of business within their first five years of operation? That’s according to a credible source – the U.S. Small Business Administration.
If you’re a small business owner, that’s a scary statistic. But, there’s some good news for you, too.
Many of these business collapses could have been prevented through better cash flow management (including the use of invoice factoring). That’s because cash flow is involved with so many aspects of your operation – not only with your day-to-day operations, but with your ability to buy assets that could strengthen or even expand your company.
Also, intelligent cash flow projections and management can help you survive the inevitable busy and slow cycles nearly every company faces (especially in this economy).
Where to turn for free business advice about cash flow management:
The Small Business Association offers a lot of solid, objective free business advice that can help your business negotiate difficult financial situations. And it also provides guidance about expanding your business and other useful topics.
At MP Star Financial, we provide free business advice, too. For instance, our free e-book named “Grow Your Business Through Invoice Factoring” explains how you can leverage invoice factoring to steady or grow your company.
Of course, you should always pay attention to sound cash flow management practices, such as:
- Creating a cash reserve by always paying your company first
- Staying on top of your customer’s past due accounts
- Offering discounts to customers who pay their bills early
- Creating a reasonable budget – and sticking to it
- Vigilantly monitoring your expenditures
Give your business the best chance for success with smart cash flow management.
Many small business owners begin their company without seriously thinking about this matter. That sets them up to be added into the statistics we mentioned.
Don’t make this mistake. Instead, emphasize financial preparation before you open your business. If you’re already in business and find yourself in a cash flow mess, consider invoice factoring to help steer your company into financial security.