Growing Your Small Biz
The time has finally arrived. That small business you started a couple of years back is poised for growth.
While you’re ready to take the next steps toward expansion, you may not have the extra funds necessary to bring your business to the next level. You need cash, but the idea of borrowing is just not sitting comfortably.
Not to worry: There are a number of measures you can take to help that small business grow without getting deep in debt.
First, take an honest look at your cash flow. Many fledgling business owners want to be a “good guy” and cut customers too much payment slack. Keep on top of those vital receivables. Set up a tighter payment policy if necessary and keep a watchful eye on accounts that are 30 days or more past due.
You can preserve some of that cash flow by delaying payment to vendors until the end of the payment cycle. You may consider it a badge of honor to pay bills upon receipt, but that’s not the best way to make money work for you. And don’t be shy about trying to negotiate new payment terms with your vendors.
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Photo by Scyza.
cassy on August 10th, 2008 5:19 pm
very nice tips…one thing is not really good when your expanding a business is to lend or borrowing money.Many businesses were down because of this.
jaeda on August 10th, 2008 7:36 pm
yes.. indeed! you will never know what you went in if you still adopt these kind.
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