Streamline Your Business to Cash Flow

Small Business owners wear a lot of hats. You are the boss and, sometimes, the janitor, and everything in between. You are doing it all.

What's the biggest worry a small business owner has? Cash flow. Staying afloat.

"Money issues are absolutely the biggest pitfall that entrepreneurs face. If you don't keep it flowing, or can't keep enough of it, your business will suffer." writes Mike Michalowicz, author and entrepreneur.

Michalowicz offers some simple questions to ask yourself to avoid spending money unnecessarily:

1. Do You Really Need that Expensive Office? Invest in an office and equipment when you really need to. These can be a big expense on your monthly cash flow. And that expensive office furniture to "show-off your success"? Better left for when you are too busy to shop for it.

2. Track Your Miscellaneous Expenses: There are always more than you planned on and they are more expensive than you think. Are there areas you can cut back on?

3. Who is Handling the Books? Yes, the small business owner wears many hats, but this is one area where it pays to hire a professional. "Entrepreneurs are often apprehensive to speak with an accountant, for whatever reason." writes Michalowicz. "Truth be told, you must get with an accountant, as it will save you money in the long run." The accountant is your friend, says Michalowicz, they will keep you on track to keep the business going and avoid tax penalties.

4. Can You Afford that Employee? It's tiring doing it all yourself, but avoid hiring someone until there is enough work to keep them busy and the return is that it frees you up to bring in more money.

5. What is my Marketing Plan? "You need to be your biggest PR agent, spreading the passion and information about your business whenever possible." advises Michalowicz, "Through networking, talking to others, etc., you need to always focus on getting the word out about your product or service." Marketing brings in the money.

In real estate we always say it's "location, location, location" but the small business owner knows it's all about "money, money, money". Rethink how you are doing business. Are there areas you need to streamline to keep the cash flowing?

Read more from Mike Michalowicz at OpenForum.com.

photo credit: eatmorechips