Comments on: How to survive a cash crunch http://smallbusiness.blogs.cnnmoney.cnn.com/2008/03/25/how-to-survive-a-cash-crunch/ Editors from FSB magazine answer your pressing small-business questions. Tue, 15 Dec 2009 12:52:55 +0000 http://wordpress.com/ hourly 1 By: Tiffany, MA http://smallbusiness.blogs.cnnmoney.cnn.com/2008/03/25/how-to-survive-a-cash-crunch/#comment-662 Tiffany, MA Wed, 04 Jun 2008 15:19:22 +0000 http://askfsb.blogs.fsb.cnn.com/?p=239#comment-662 For the business owners who are risking their personal credit to fuel their own business and need capital, I am a broker at Numa Financial Group. We offer unconventional financial products for business owners who need to meet their capital needs, and we can get them the capital they need in as little as 72 hours. Some of our products don't even look at your credit score, and you won't even have to risk or collateralize any of your personal assets or go through red tape normally experienced at a bank. If you are interested in having a line of credit whenever you need it, you can contact me at tlien@numafinancial.com. For the business owners who are risking their personal credit to fuel their own business and need capital, I am a broker at Numa Financial Group. We offer unconventional financial products for business owners who need to meet their capital needs, and we can get them the capital they need in as little as 72 hours. Some of our products don't even look at your credit score, and you won't even have to risk or collateralize any of your personal assets or go through red tape normally experienced at a bank. If you are interested in having a line of credit whenever you need it, you can contact me at tlien@numafinancial.com.

]]> By: Paul South Florida http://smallbusiness.blogs.cnnmoney.cnn.com/2008/03/25/how-to-survive-a-cash-crunch/#comment-536 Paul South Florida Tue, 01 Apr 2008 14:35:20 +0000 http://askfsb.blogs.fsb.cnn.com/?p=239#comment-536 Another area that needs consideration is dead-stock merchandise.When shelves are full of unsold inventory,it weighs heavily on the bottom line of any business.Consider the amount of capital that is tied up in the merchandise and how having that money will increase cash flow. http://www.sellmyinventory.com Another area that needs consideration is dead-stock merchandise.When shelves are full of unsold inventory,it weighs heavily on the bottom line of any business.Consider the amount of capital that is tied up in the merchandise and how having that money will increase cash flow.

http://www.sellmyinventory.com

]]> By: Paul South Florida http://smallbusiness.blogs.cnnmoney.cnn.com/2008/03/25/how-to-survive-a-cash-crunch/#comment-535 Paul South Florida Tue, 01 Apr 2008 13:47:38 +0000 http://askfsb.blogs.fsb.cnn.com/?p=239#comment-535 Also, as in any business the major factor that is most always overlooked is the amount of excess,dead-stock inventory that is eating up a large portion of the cash flow.Consider the amount of time and space that merchandise costs the bottom line.Reducing or completely eliminating the merchandise will free up valuable space and cash. http://www.sellmyinventory.com Also, as in any business the major factor that is most always overlooked is the amount of excess,dead-stock inventory that is eating up a large portion of the cash flow.Consider the amount of time and space that merchandise costs the bottom line.Reducing or completely eliminating the merchandise will free up valuable space and cash.

http://www.sellmyinventory.com

]]> By: Eric, Baltimore http://smallbusiness.blogs.cnnmoney.cnn.com/2008/03/25/how-to-survive-a-cash-crunch/#comment-533 Eric, Baltimore Mon, 31 Mar 2008 16:05:53 +0000 http://askfsb.blogs.fsb.cnn.com/?p=239#comment-533 One thing Ocean should do is to carefully examine accounts receiveable, and reduce the amount of time balances are outstanding. Pay close attention to handling past due accounts. Small businesses in a growth phase often overlook staying on top of this. Since growth is occuring, consider it as an opportunity to bring slow-to-pay customers in line, or simply replace poor customers with better ones if necessary (customers willing to pay a better rate, and pay on time). Part of managing cash flow through a growth phase involves pruning out poorly performing customer accounts. This can be hard to do, as some of these customers got you where you are today, but don't fall into the trap of being their lender. I was once involved in a computer and electronics firm that nearly grew itself into insolvency. Sales were double the previous year, but cash flow was horrible. Reviewing accounts receiveable uncovered numerous accounts 3-6 months past due. They were, in effect, financing other people's growth by delivering goods and services and allowing long-past-due accounts to go uncollected. It doesn't matter how much you deliver in goods and services if you are not being paid ... Like Ocean's case, this firm was borrowing money to meet its ever-growing demand for incomming materials. However, by not attending to making sure they were being paid promptly, they nearly grew themselves out of business. One thing Ocean should do is to carefully examine accounts receiveable, and reduce the amount of time balances are outstanding. Pay close attention to handling past due accounts.

Small businesses in a growth phase often overlook staying on top of this.

Since growth is occuring, consider it as an opportunity to bring slow-to-pay customers in line, or simply replace poor customers with better ones if necessary (customers willing to pay a better rate, and pay on time).

Part of managing cash flow through a growth phase involves pruning out poorly performing customer accounts. This can be hard to do, as some of these customers got you where you are today, but don't fall into the trap of being their lender.

I was once involved in a computer and electronics firm that nearly grew itself into insolvency. Sales were double the previous year, but cash flow was horrible. Reviewing accounts receiveable uncovered numerous accounts 3-6 months past due. They were, in effect, financing other people's growth by delivering goods and services and allowing long-past-due accounts to go uncollected.

It doesn't matter how much you deliver in goods and services if you are not being paid … Like Ocean's case, this firm was borrowing money to meet its ever-growing demand for incomming materials. However, by not attending to making sure they were being paid promptly, they nearly grew themselves out of business.

]]> By: J.Sami Younis, Madison, WI http://smallbusiness.blogs.cnnmoney.cnn.com/2008/03/25/how-to-survive-a-cash-crunch/#comment-532 J.Sami Younis, Madison, WI Mon, 31 Mar 2008 10:53:25 +0000 http://askfsb.blogs.fsb.cnn.com/?p=239#comment-532 I think u should go for the loan since your assets are under utilized. But provided that u are certain of the demand for your product or service in that particular market. I think u should go for the loan since your assets are under utilized. But provided that u are certain of the demand for your product or service in that particular market.

]]> By: Sridhar, Dallas, TX http://smallbusiness.blogs.cnnmoney.cnn.com/2008/03/25/how-to-survive-a-cash-crunch/#comment-531 Sridhar, Dallas, TX Sun, 30 Mar 2008 01:30:19 +0000 http://askfsb.blogs.fsb.cnn.com/?p=239#comment-531 Have you considered venture capital? Tradeoff stock options for money. This money will be interest-free to you while the investors can cash on the stock when the company turns profitable and/or goes public Have you considered venture capital? Tradeoff stock options for money. This money will be interest-free to you while the investors can cash on the stock when the company turns profitable and/or goes public

]]> By: SRogers, Allen, Texas http://smallbusiness.blogs.cnnmoney.cnn.com/2008/03/25/how-to-survive-a-cash-crunch/#comment-525 SRogers, Allen, Texas Wed, 26 Mar 2008 15:29:14 +0000 http://askfsb.blogs.fsb.cnn.com/?p=239#comment-525 One item that seems to be missing in a possible solution to this individual's cash problem is <i>increasing the prices for the services being provided.</i> You may lose some clients initially, but if the increase is reasonable, the majority of your clients will stay especially if they feel you are providing a valuable service and you are not getting greedy. One item that seems to be missing in a possible solution to this individual's cash problem is increasing the prices for the services being provided. You may lose some clients initially, but if the increase is reasonable, the majority of your clients will stay especially if they feel you are providing a valuable service and you are not getting greedy.

]]> By: Sam , Washington http://smallbusiness.blogs.cnnmoney.cnn.com/2008/03/25/how-to-survive-a-cash-crunch/#comment-524 Sam , Washington Wed, 26 Mar 2008 14:46:35 +0000 http://askfsb.blogs.fsb.cnn.com/?p=239#comment-524 Hi, One of the things I have seen very successful is giving coupans which are punch kind buy 9 meals get 1 free reademable on weekends. May be you can distribute those to your existing customers. Hi, One of the things I have seen very successful is giving coupans which are punch kind buy 9 meals get 1 free reademable on weekends. May be you can distribute those to your existing customers.

]]> By: Satish Choudhary , Washington , USA http://smallbusiness.blogs.cnnmoney.cnn.com/2008/03/25/how-to-survive-a-cash-crunch/#comment-523 Satish Choudhary , Washington , USA Wed, 26 Mar 2008 14:41:31 +0000 http://askfsb.blogs.fsb.cnn.com/?p=239#comment-523 I think in your situation take a close look at your operating expenses, some times the margins we think we are making are not true so get a realistic margin percentage. If your business is booming may be you are loosing sales because of credit crunch in which case borrowing will make sense. Overall I think the problem may be in operating margins. I think in your situation take a close look at your operating expenses, some times the margins we think we are making are not true so get a realistic margin percentage. If your business is booming may be you are loosing sales because of credit crunch in which case borrowing will make sense. Overall I think the problem may be in operating margins.

]]> By: Kevin A http://smallbusiness.blogs.cnnmoney.cnn.com/2008/03/25/how-to-survive-a-cash-crunch/#comment-520 Kevin A Tue, 25 Mar 2008 18:31:09 +0000 http://askfsb.blogs.fsb.cnn.com/?p=239#comment-520 Hello FSB I am the owner of a BBQ restaurant in a downtown area in florida, but my town is a small town and the downtown area is slowly developing. Right now there are about 8000 employees in the downtown area from 8am -5pm EST and about 30 restaurants. After 5pm, its pretty slow, and the weekends are even worst, but the night life is slowly coming. However there are residential houses, a few hotels and a main traffic road nearby. What are some of the ways I can attract customers after hours and on the weekend? Thanks Hello FSB
I am the owner of a BBQ restaurant in a downtown area in florida, but my town is a small town and the downtown area is slowly developing. Right now there are about 8000 employees in the downtown area from 8am -5pm EST and about 30 restaurants. After 5pm, its pretty slow, and the weekends are even worst, but the night life is slowly coming. However there are residential houses, a few hotels and a main traffic road nearby.

What are some of the ways I can attract customers after hours and on the weekend?

Thanks

]]>