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Tips to Prevent Your Business from being part of the 50% that Fail…Think Financing for Survival

Thinking about your business financing, factoring financing, and po financing are all key parts of planning for a growing business…the product is important but not as important as the finance that will make it a reality.

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Tips to Prevent Your Business from being part of the 50% that Fail…Think Financing for Survival

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  1. Tips to Prevent Your Business from being part of the 50% that Fail…Think Financing for Survival

  2. Thinking about your business financing, factoring financing, and po financing are all key parts of planning for a growing business…the product is important but not as important as the finance that will make it a reality. According to the U.S. Small Business Administration, about 50% of all small businesses close within their first year of operation. One of the largest contributing factors for many of these businesses shutting down is cash flow issues. Many individuals start their own business because they have a great idea and want financial independence. The problem is, they often have little to no experience managing cash flow in a business, something that we, as factoring financing experts, know to be one of the most important aspects to creating a sustainable business. If you want to be one of the two businesses to make it past your first year, consider keeping these four financial tools in your back pocket:

  3. Budget | The best way to control your spending is to limit it. At the beginning of each period, create a plan for how much revenue you should bring in, and how much of that revenue you will likely spend. This forecasted budget gives you something to measure and track as your business progresses. If your spending exceeds what you budgeted, either find a way to increase your sales or cut your expenses. • Bookkeeping Software | As a business owner, it’s vital that you know exactly how much money you have available at any point in time and what that money is being spent on. A bookkeeping system increases your financial visibility by organizing all of your account information in one place. You can track invoices, accounts payable, and cash flow easily using one tool. This gives you a clear view of your financial situation.

  4. Merchant Services System | The easier you make it for customers to pay the better. An efficient purchase order system does this as well as tracks purchasing trends. This gives you more insight into customer interests and allows you to improve your inventory management – one of the more common places cash flow gets tied up and wasted. • Invoice Factoring Financing |For most business owners, there will be times when cash flow gets tight. However, bills still need to be paid. Invoice factoring financing gives you immediate access to cash flow from unpaid invoices, allowing you to pay all your bills on time and keep cash flow balanced.

  5. Keep these financial tools on hand as you open or grow your business. Cash flow can be a tricky area, but as long you track and monitor your finances, it should be easy to spot problems early on and find a solution that works for your business.

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