As a small business owner myself, I know all the pains and frustration small business has with money and cash flow. Needing the cash to grow your business, pay expenses, and hire new staff. There are so many things that need to be done, and you need to make one decision over the other decision.  It is never an easy process.

So, we have put together some ideas about how to manage your cash flow.

What is your cost of living?

The question is what is your real cost of living from month to month. It is important that you divide your personal cost up with the business cost up, and you know what you need to live and feel comfortable enough to make you motivated to work from day to day. In relative you will need to create a budget for yourself, rent, cost of food, utilities, other core personal expenses and then what is the entertainment budget.

Knowing these cost of living, and what you need to live will give you the minimal amount you need to pay your self as a regular cost. When you get into entertainment and things you want and other luxuries, these are all items which will pull you away from your objectives. Investing in your business, Hiring new staff, etc. So you will need to find the balance between personal life and business life.

Once important item is to keep your personal and business expenses separate. Managing a budget off your business account is very difficult, and getting use to using your business card as your personal credit card will both make it hard to track cash flow, hard to manage your budget and hard to manage your accounts at the end of the year.

Managing and Timing Expenses

Expenses are a key part of your business, buying products, stocks, inventory are all key to the success of a business. As part of managing expenses, you need to think about expenses over time. For example, sometime it is better to pay more for stock if you can pay over time, as what this impact is that you have more cash today to invest into other areas of the business which will improve the over all cash flow for the future.

This is one key aspect to QLC unsecured line of credit, it gives you the access to funds over time, so your able to spread your expenses over a period of time, to assist you managing and investing into other aspects of your business.

Human Resources

Hume resources is the larges expense for almost all business, before you make the job to start hiring people, make sure you prepared both operationally with the correct training, documentation and process and also prepared as an investment, how is this employee going to make you capital and how  long till this capital starts showing up in your bank account.

Payment Plans with Supplies

Quite often you will need to by supplies, contract labor and other resource to get you started. In general most will have their standard contracts, but a lot of time there is room for negotiations, they want to make their sales, and you need the best way to manage your fund.

See what terms you can get with your supplies, can you get a payment time period, can you get stages payments, etc.

A lot of supplies are happy to work out a balanced payment with you, to maintain a win-win situation.

Keep money for the tax man

The reality of life is that the cash you get is not all yours. A chunk of that cash either for employees, payments, collections are for the tax man. It is just a reality of running a business. It is important that you keep your payments for end of yeah. Medicare, income tax and any other tax element.

Avoid using these fund for investing in your business even if it is tempting to do use them and avoid difficult and potentially illegal situations.

This is just a few ways of managing you funds, add them to your tool kit for your business, and keep growing to make efficient and smart investments.

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