I own a small business that's busy but has cash flow problems . Is there anyway to resolve it?

Question

I am #'s proffitable but always have certain times when i struggle. Are there any programs or things I can do so I don't have this problem???

Answer 1

Talk to score.org for free and...  

Look into the following:

-Are you ordering too much inventory?

-Paying bills to soon, when some can actually wait?

-Is salary too good for you and employees?

-Is the rent, lease payments too high?

-Are you in a college area (students leave during the summer and holidays, which slows down your sales)?

-Who's your competition, are their prices and quality better?

All situations above have solutions. It's normal for businesses to go through tough times, as long as you are able to recover you'll be fine.

Investors, SBA loans and line of credits can probably help, but you must first pin-point the problem.

Answer 2

You probably have too much money tied up in non-cash assets; A/R, Inventory. You really need a CASH budget. Profit in itself is not spendable. Cash is king. A lot of businesses have this problem, and a lot go out of business because of it. Talk to you accountant and tell him you want him to set you up a 12 month Pro Forma cash budget. That should solve your problems.

Answer 3

It's hard to say without more specifics.  Is your cash flow problem because of receivables?  Are the customers you extend credit to paying slowly?  If so, reduce their credit limits or cut off past due accounts until they pay. Also, shop around on your credit card processor.  Some get your money deposited more quickly than others.  Post more details and I'll check back tomorrow.