Five Ways To Get More Cash From Your Business

Five Ways To Get More Cash From Your Business

by | Feb 12, 2012 | Archives

AZ Business Magazine by Jerry Mills   As CEO of B2B CFO®, I regularly talk about our motto which is, “Cash. We help you get it®”. When talking about how we help our clients get more cash, I find that there is generally a misconception. Most people think that there are only two ways to get more cash: the first one being taking a traditional route of talking to banks about loans, and the second trying to get an investor to infuse more cash into your business. I am going to present to you five ways to get more cash from your business. These five steps do not involve taking on more debt nor do they involve diluting your equity: 1. Try to cut back on costs Yes, this is a pretty obvious way to get more cash into your business, but it does take a concerted effort. One of the easiest ways to cut cost is to ask your service providers to re-bid for your business. Just because they are working with you now doesn’t mean that they are the best fit for your business in terms of cost or relationship. This can be particularly true in the following areas: insurance, benefits, telephone, credit card services and office supplies. These are all examples that can be negotiated and significant cost savings realized. Saving even three or four percent of operating expenses can be the difference between breaking even and generating significant cash. 2. Sell more or charge more This may seem obvious, but you might find there is less opposition than you may think. Look at what your competition is...
A Cash Crisis

A Cash Crisis

by | May 17, 2010 | Archives

SMALL TALK MAY 17, 2010 Colleen DeBaise answers an entrepreneur’s question about when to call it quits Q: I’ve owned a small clothing boutique for three years. I weathered the economy, but now a construction project that will last three months has blocked foot traffic to my business. This is killing my cash flow so much that I had to delay paying my rent and my sales tax. When do I call it a day? —Susan, Burlingame, Calif. A: Fighting for survival is never easy, but keep in mind: If you don’t pay sales tax, the state could shut you down. When that happens, “you lose control—and that’s even more frustrating,” says Jerry L. Mills, founder of B2B CFO Partners LLC, a Phoenix firm that provides part-time chief-financial-officer services to small businesses. So, direct any reserve funds toward the payment of taxes as a first step in getting out of an already bad situation. After that, place a call to your insurance agent, and see if your business owner’s policy includes business- interruption insurance, which generally kicks in when natural or man-made hazards threaten your company. And while it’s best to avoid legal action, you might consider contacting an attorney to see if you have any recourse against the party—be it the city or a next-door neighbor—who’s jackhammering. Given the situation, you might also be able to negotiate a lower rent from your landlord, especially while construction continues. As far as deciding whether to close up shop, you should perform a simple cost-benefit analysis, looking at whether the positives outweigh the negatives if you remain open for six more...