One of the big issues facing small businesses is trying to figure out where your money is going. Many times you can show a profit on an income statement, but the cash flow (real money in, real money out) will be almost negative. Here's a tip. The cash flow CAN NOT be negative. When it hits the red line, it is usually game over, because there is no money to pay the bills.
Don't ever think you're too busy making sales and working in your business to worry about your cash flow. This way of thinking is the same as burying your head in the sand and just hoping everything will work itself out.
Click here, http://www.volstate.edu/TSBDC/tools.php, for a financial worksheet to get you started.
Remember, your cash flow is not the same as your profits. You can have a profitable business, but a negative cash flow. Prepare a monthly cash flow statement to ensure that you don't get caught unexpectedly without enough cash to handle your day-to-day operations.
Do not hesitate to call or email the TSBDC for assistance in putting together your cash flow.
The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.
Tennessee Small Business Development Center at Volunteer State Community College provides free and confidential advising sessions to small business owners that want to grow, hire, or obtain financing.
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