Increase business cash flowThis is a continuation in our series of the 8 Levers to Increase Cash Flow in Your Small Business. In this article we turn to the Entrepreneur’s go to fix for cash, increasing sales.
More insidious than Dave Ramsey’s obsession with debt, is his admonishing small business owners to not have partners. Let me say upfront that I completely understand what he is trying to accomplish with people, and I’ve certainly experienced my share of bad partnerships, but abstaining from all business partnerships is frankly a little goofy.
And just like that, Congress shuffled the deck. To be clear, the PPP Flexibility Act brings welcome relief to those small businesses that participated in the Paycheck Protection Program, but it didn’t address all the issues. My gut tells me that they’re not done tweaking this, and before anyone takes action, we need to see what regulations the SBA issues regarding the new law.
I am going out on a limb here, but I don’t like Dave Ramsey. That may be heresy to some, but let me explain why. Aside from the fact that he is dull to listen to, has not a funny bone in his body, and generally is preachy and dogmatic, that is not why I think Ramsey is bad for business. It’s not even that I disagree with his advice, although most of it tends to be more family therapy than financial help. In large part, his recommendations make a lot of sense for the right people, and that is what brings me to my trouble with him. His advice is geared towards wage earners, NOT small business owners. I’m sure there is a lot of crossover, meaning many small business owners have wage-earning spouses, and deal with many of the same issues. The shortcoming is, however, that Ramsey’s advice doesn’t go far enough. His advice is, “if you don’t have cash, don’t buy it.” Brilliant idea, but not very practical for most small business owners. Sure it is preferable to not have to borrow money, but does it really make good business sense?
Everyone has been focused on the SBA loan provisions in the CARES Act, and are overlooking several other tax savings opportunities in the law. In this article we'll dive into the tax-free distributions from qualified retirement accounts.
I had one exceptionally difficult teacher in grade school. To this day, I don’t regret the experience. She taught me a lot, but I do remember a specific instance where she embarrassed me in front of the class by telling me that what I had put in a report was wrong.
Continuing from our article on The Eight Levers to Increase Cash Flow, we move to debt. To be clear, in this situation we're talking about bank debt, not trade debt (covered in this article on account payable).
Cash flow for small business is the fuel that drives the engine. Strategy, execution, and the best people in the business don't make any difference if there isn't cash to make it go. Virtually every small business owner has struggled with a cash shortage in their business lives. So how do you solve the problem?