Tag Archives: Budgeting

3 Financial Tips for New Entrepreneurs

Contributed article in our entrepreneurial series. Enjoy! – Kimberly

As a new entrepreneur, you’re likely learning a lot about money. This is because as opposed to working and earning a salary, you’re actually the one who has to hire workers and pay their salaries amongst other things. As a new entrepreneur, it’s imperative that you get good at finances whether you happen to be an accounting major or not. This is because knowing where your money is going, how much value it’s bringing you and how to make it work in your favor is essential as a business owner. On that note, this article is going to explore a few financial tips for new entrepreneurs.

Learn to Budget

When it comes to successfully managing finances, budgeting is key. It’s imperative that you’re able to work with what you have without continuously going over your budget. Continue reading→

Why is Positive Cash Flow So Important to a Small Business?

Contributed article in our startup series. Enjoy! – Kimberly

Cash is the lifeblood of any business. To use a medical analogy, think of your business as a heart. The cash flows in via paid invoices (the veins) and the cash flows out to creditors via your ‘arteries’. If you have a blockage in a vein, it starves the heart of oxygen. This is not good. You might limp on for a while, but unless the blockage is cleared, your heart (the business) will stop beating.

Unfortunately, many small business owners don’t pay close enough attention to their cash flow. They are too busy marketing their products and services, schmoozing new clients, and expanding the business to think much about whether existing clients have paid their invoices. It’s only when the cash dries up and they don’t have enough money to pay a creditor that panic sets in

Why Cash Flow Matters

Negative cash flow is the main reason why businesses fail. Statistics continually show that 90% of all businesses fail in the first year. Those that do survive will fail within five years. In the majority of cases, a lack of cash flow is the reason why it all goes wrong.Continue reading→