Small business finance trends to aware of
1. Trade credit is rebounding. More small businesses are arranging to buy goods or services on account, without making immediate cash or credit card payments.
2. Cash flow problems continue. A recent survey found that the number of small business owners who say they’re experiencing cash flow problems increased 4 percent between June 2009 and October 2010. Fortunately, the right credit or charge card can help entrepreneurs better manage their cash flow.
3. It’s cheaper to get started. Technology has made it possible to start a variety of businesses with little infrastructure and start-up cost.
4. If your business didn’t have to write off some bad debt during the recession, you were one of the few who escaped the burden of unpaid receivables. Perhaps driven by this experience, more small businesses are better managing the credit they extend to customers and keeping better track of their receivables. Manage your working capital well, and cash will flow.
5. Understanding your own company’s financial numbers will increasingly be more important than following the nuances of the financial markets. Control cash flow, and reducing costs.
6. Micropayments and subscriptions provide small businesses a new, innovative way to profit and serve their customers at the same time. Small, one-time charges and small, monthly subscription fees may be preferable to many consumers, and can provide a steady revenue stream to a small business.
7. More entrepreneurs will seek – and find – financial education specific to small businesses. Financial education can be found in many places, from forums on the Internet to your local university or community college. With more schools and advisers offering courses and advice aimed at small businesses, any entrepreneur who wants to expand his knowledge to grow his business won’t have any trouble finding educational resources to help him do so.
