5. Be aware of incentives.
No matter which part of the world you are operating in, there are typically a lot of incentives available for small businesses operating in specific industries.
Take time to research available incentives at a State and local level. Some of the programs may help improve your company’s cash flow and profit margins.
6. Build in a culture of cash consciousness.
This is especially important if you have separate teams handling sales and finances. Typically the sales team would consider cash management to be the responsibility of the finance team and would offer liberal credit terms for customers in the hope of increasing sales numbers. If your sales team was left alone with no supervision, I could only imagine the insane deals they would cut to make quota or get that sales bonus.
One way to overcome this hurdle is to incentivize cash conscious behavior. Thus, instead of sales incentives based on sales figures, you can offer sales incentives based on collections. This will ensure that your sales team focuses on not just achieving the numbers, but in the quality of sales.
Ultimately, where cash flow becomes an issue is when small business are ran like “small businesses.” You can’t arbitrarily spend money on things that may be working or go months without analyzing your expenditures.
Being your own boss is great but there’s much to learn from “big business” management. For a better chance at success, entrepreneurs can follow the accounting awareness footsteps of larger corporations – or at least start with the six steps above.
Connect with Nicolas on Twitter.
Photo Credit: Zara
Nicolas D’Alleva is the owner of Specialty Answering Service, a global call center provider. D’Alleva started Specialty in 1995 and has grown it from a small provider to a necessary service for small businesses.
© YFS Magazine. All Rights Reserved. Copying prohibited. All material is protected by U.S. and international copyright laws. Unauthorized reproduction or distribution of this material is prohibited. Sharing of this material under Attribution-NonCommercial-NoDerivatives 4.0 International terms, listed here, is permitted.