‘Creating Cash Flow’ by Adrian Newman
Adrian Newman’s latest ‘e-Wealth Daily’ article is titled “Creating Cash Flow”. [Adrian Newman’s Article]
Adrian Newman’s latest ‘e-Wealth Daily’ article:
Sometimes you need to step back from everyday life and recognize whether you are taking the right financial steps with your business. I’m not talking about the big things, such as pricing products or services, doing customer research, or other tasks of this nature. I’m talking about the small stuff. Sometimes you need to look at the little things that contribute to your business’ cash flow.
It takes only a few decisions to improve cash flow. So, in the spirit of little things, here are some reminders and tips about, well, money. First, make sure that you are still paying attention to your paperwork. Do you have a file (preferably electronic) that is up-to-date in terms of income and expenses, any payments owing, or debts you owe? This should be maintained constantly and serve as your financial home base — proof of your cash flow and proof of when you need to reconsider that flow.
The second bit of paperwork that should be in order is your budget. Without having a solid budget in place, you will find that a lot of the small things will start to fall through the cracks
— and that can get costly. Stay on budget so you don’t overpay one segment of your business (marketing, for example) and leave yourself in the red when you are forced to pay unexpected expenses, such as employee overtime.
Next, we’ll hit upon your bread and butter — your customers. With a nod toward preserving your relationship at all costs, be sure to collect money when it is owed. Having a system of credit is a surefire way to reduce the cash flow of any given month. Credit customers only when necessary. That being said, remember your customers — the ones you already have. Over
time, they are the ones who will feed your cash flow.
There will always be new customers to be had; there won’t always be regular customers. Nurture that relationship at all costs, because loyal customers are also repeat customers who
will refer you to others. In terms of money, it’s also cheaper to keep an existing customer than it is to go out and find a new one.
Know the precise amount of expenses you face each year so that you can also know how to increase your cash flow. To run a successful business, you need to know the level of sales
required in order to meet those expenses. That’s the breakeven mark. Understand that mark in all the planning you do. Sometimes, the key to better cash flow is simply keeping the small things in mind. Heck, buy a chalkboard and sketch it out for you and all your employees to see — and remember.
When tax time rolls around, don’t worry about having to pay the IRS money. Don’t bother intentionally trying to make your business look less profitable just so you can keep money in
your pocket. Know that, because you are paying taxes, your business is part of the entrepreneurial engine of America.
Worrying about the taxman (to borrow a Beatles phrase) is not conducive to increasing your sales volume and your cash flow. Keep enough in the bank to pay the IRS, take every deduction
owed to you, and stay positive. Don’t let tax time override your cash flow decisions throughout the rest of year.
About e-Wealth Daily
The e-Wealth Daily Bulletin brings you daily tips, advice and breaking news related to home businesses, small businesses and internet marketing. Our team of experts gives you the information you need to take your business pursuits to the most profitable level. Founded by Adrian Newman in 2003, the e-Wealth Daily Bulletin and www.ewealthdaily.com are a division of Lombardi Publishing with online newsletters reaching over 100,000 subscribers each month.
* IMNewsWatch would like to thank e-Wealth Daily for granting permission to reprint this article.
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