Optimize Your Cash Flow and Grow your Business

Foundation of Financial Risk Management

For small businesses, the foundation of financial risk management revolves around cash flow. Business leaders need to understand when cash is expected to come in, what expenses are required and how much money is available at any given time. Leveraging cash flow management tools to plan for the future will ensure a business has enough cash to sustain operations through any storm1. This workshop can help you create and manage your cash flow statement and forecast cash in/out.

Today’s economy is turbulent, and small businesses without proper cash flow management are at risk. The greatest risk to any business – especially small ones – is solvency. This is especially true in turbulent economic times. As businesses are being squeezed by rising costs, continued supply chain pressure and higher interest rates in a tightening debt market, businesses should evaluate their cash position regularly to ensure they can survive in the event of protracted financial pressures2.

Data Insights about the importance of Cash Flow Management

A survey from the Federal Reserve Bank of Chicago found that successful business had four things in common:

  1. Knowledge and experience with credit.

  2. High level of unused credit balance.

  3. Budget management and monitoring.

  4. Cash set aside for payroll3.

Another survey found the more often a small business analyzes its budget, the higher its success rate. Those that do it annually, the U.S. Small Business Administration says, have a success rate as low as 25%. Done monthly or weekly, those rates climb to 75-85% and 95% respectively4.


Training Content

By taking this training, you are taking an important step toward successful small business ownership. As a small business owner, it is important to know how much cash is moving in and out of your business. You need to think ahead in order to meet financial obligations and run a profitable business on a long-term basis.

To manage cash flow, you want your customers to pay you right away so you can use that cash to meet your financial obligations. On the other hand, you want to pay your vendors as late as possible, usually 30 days. The trick is to manage your accounts receivable (the money others owe you) and your accounts payable (the money you owe). Having the appropriate payment processing model for your business is also key. If a customer pays with a credit or debit card, this is good, but the profitability is lower because the business has to pay a credit card processing service and fees charged by the credit card issuer. Universal Processing can help you evaluate your business model and determine the right payment processing model for your business.

RSVP for the Free Virtual Workshop Oct. 24th or Oct. 27th

https://www.eventbrite.com/e/optimize-your-cash-flow-and-grow-your-business-tickets-439237279527?aff=CNPPPage

References:

Forbes Council Members, Expert Panel (2022). 15 Expert Tips To Help Small-Business Owners Better Manage Financial Risk. Extracted on October 10, 2022 from: https://www.forbes.com/sites/forbesfinancecouncil/2022/07/27/15-expert-tips-to-help-small-business-owners-better-manage-financial-risk/?sh=339de1a922f9