Flow Cash Flow

One of the biggest issues we see with small business owners is cash flow.  Cash flow is critical to anyone. It can mean the difference between paying yourself and your staff and having no money at the end of the month.  Cash flow is like water flowing over a dam.  There should be a certain amount flowing out and a certain amount held back each month.  

One of the things I tell people who have questions about their credit seems to be just common sense.  Don’t buy anything unless you know you can pay for it (especially if using credit cards) never spend over what you can pay off monthly on a credit card- in other words pay that balance off monthly.  When a bill comes in, pay it. If you wait, you might forget to pay it and then you will be charged late fees and it will ding your credit. 

These are simple steps that so many people just don’t follow. They get into credit card debt by spending too much on things they don’t need.  If you are using credit cards to run your business, then that is a whole other subject.  If you are running your business on credit cards you should make sure you have a detailed plan on your revenue and expenses.  This will help you figure out when you will actually be earning money and will be able to pay off the credit card debt.  Good or great credit doesn’t just happen; you have to plan for it.  Whether it’s personal or your business finances make a plan and a budget then stick to them. 

So many people who want to start a business have bad credit.  Loans are usually out of the question for them- at least form the traditional sources like banks.  If you are thinking about starting a business, get working on your credit score to improve it anyway you can.  It will make a big difference in helping you realize your dream of opening up your own business.  

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Suzanne Cormier
Executive Director
BizWorks (Small Business Incubator)
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