Cash is King

I recently put my family on a strict budget.  I've been forced to do this in the past for financial reasons, but this time it's different.  We are trying to be better stewards of the resources we've been blessed with.  We were blowing money like nobody's business and didn't have a thing to show for it other than expanding waist lines.  For whatever reason, at my house the majority of extra cash always goes toward eating out.  However, things will be different (for a while at least, until I get tired of budgeting).  So here we are balancing our checkbook, paying ourselves 'allowances' and keeping the kids' spending habits in check.  It feels good to have a plan of attack, with the ultimate goal of having the ability to give more back to those in need. 

So having to budget for oil changes, tire repairs, doctors visits, etc. has left me thinking about my glory days as a small business owner. I knew every penny that was to enter or leave my business, because I had to. Cash flow was the sustainer of all things business (still is).

This leads me to my point of cash flow is king (not collateral).  It's great to have a nice house, and dependable vehicles, but those don't help pay the electric bill or buy the groceries.  Assets can only go so far.  Sure I could walk into a bank and throw my house and cars down as collateral for a loan, but without a steady income, I wouldn't get the loan.  Same concept applies for business.  Getting a loan for lawn equipment or a steel building will require more than the collateral down.  A banker doesn't want a cappuccino maker or weed eater in their portfolio, they want the loan payment in on time.  When it comes to small business loans, a strong down payment and a secure cash flow are the deciding factors. 

Is cash flow a struggle for your business?  Maybe the real question should be what is your business doing to innovate and grow?  What can you do about that?  A few ideas are to cut expenses, increase income by expanding into new markets or improving your product or service.  Do a situational analysis of the market you serve.  How is your product or service newer, better, faster or cheaper?  There are so many ways to improve the customer experience, without breaking the bank.  My co-worker, Lynn Wilson and I occasionally teach a workshop focused on marketing on a shoe string budget.  The main point of the workshop has nothing to do with advertising or increased exposure, it's all about improving the customer experience.  So if cash flow is struggle for you, give us a call and let us help out.