As the crisis on Wall Street reaches out to Main Street and credit markets get tighter, cash flow may be the most critical component to your store’s success (or failure).
Over at Wall Street Journal’s Independent Street Blog, Raymund Flandez shares “Five Tips for Surviving a Cash-Flow Crisis.”
He spoke to Rusty Luhring, owner of Luhring SurvivalWare Inc., which provides financial modeling software for small businesses, who offered the following tips.
Ideas on how to best manage your cash flow:
- Triage Payments: Make a list of payments due for the next three months, prioritize payroll and negotiate all others.
- Invoice Early: Don’t send out invoices late, since you’re just delaying receipts.
- Invoice Frequently: Consider billing twice a month instead of once, in order to speed up cash flow.
- Payment Upfront: Ask for a portion of payment upfront; get the rest at pre-determined intervals.
- Manage Credit Cards: Take time to track the balances and credit limits for cash advances versus overall purchases separately. When things get tight, Luhring suggests charging expenses to cards that have available merchandise credit, but no available cash advance credit. You should maximize your available cash advances.
Take The Tip:
Click here to read more financial management tips from Luhring on his company website, www.survivalware.com
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