A company’s executives came across excessive cell phone bills, so they asked their manager to review the bills. Naturally, the first thing most people thought was that some employees may be abusing their cell phones to make personal calls. That wasn’t the case.
After doing a little detective work, the manager figured out that the high phone bills resulted from employees having different usage needs and working in different locations. One employee, a frequent traveler, racked up roaming charges whenever he traveled to another country. The company found a better plan to fit the employee’s usage and cut the bill by more than half.
Businesses often think they need to borrow money when they shouldn’t. Still, there are times when it’s a good move to get working capital financing, especially when it contributes to growing the business.
A bank approving an application for a loan isn’t a sign that a business needs it. All it indicates is that the bank believes the business can pay back the line of credit or loan. That’s their main goal regardless of how it affects your business.
Working capital is the money your business uses to pay for day-to-day expenses. Eventually, every business runs short on occasion and will need a business line of credit or working capital funding to fill in the gaps.
This post discusses how to figure working capital so you can decide if your business needs working capital funding from an outside source. Continue reading
The good news is that we’re technically out of the recession. The bad news is, money is still not falling out of the sky.
Every business and every market goes through fluctuations. Whether it’s a competitor opening down the street or a country-wide shift in the marketplace, the tide can turn on your business at any time, and frequently does.
But there are plenty of things you can do other than grin and bear market changes. The way you structure your cash flow can make a HUGE impact on your business’ immunity to market fluctuations.
When you think of things that could bring down your business, you probably think about outside forces such as too few customers, rising materials costs, or overbearing government regulation. But did you know that internal cash management issues are the primary reason most businesses fail?
Who’s in charge of internal cash management? You are. Continue reading