My home budget is a low-ticket balance sheet, but I can borrow a few financial notes from the business sector. I am going to use the following business-oriented tips for my personal financial plan. Designed for entrepreneurs -- this advice -- also applies to our home budgets.
I'm especially interested in the tips about a mid-year financial cash flow review
and the inventory check. (We can check our own stock of home products and equipment.)
Here is the news release:
"With more than half of the year 2006 gone, businesses must re-evaluate their cash flow strengths and weaknesses.
Studies show that cash flow, or a lack thereof, can make or break
a business. For 2006, there are some definite cash flow woes,
and businesses across the nation must avoid these if they are
going to be around for 2007.
Karlene S. Robinson of KPR Funding Solutions, LLC, reveals these
woes and some quick tips to improve cash flow for the remainder
of 2006. Study these tips to find ways to improve cash flow on
either side:
1. Build a Cash Reserve:
A cash reserve is a must. This is simply a set amount of cash put back into
savings for emergencies.
A rainy day, a sales slump, a natural disaster that
leaves the business closed for several days (or even
weeks), health, or even personal issues can occur when
least expected. Robinson encourges business owners to
save enough operating cash for the business to last at
least several months when hard times hit.
2. Re-evaluate Business Cash Movement:
Cash moves in and out of the business bank account for items such as
invoicing, outgoing bills, cash jobs and payroll.
Business onwers need to know where their cash is going
and where it is coming from.
3. Inventory Check:
Business onwers should take a look
at their inventory list to see if there are products that
could be moved faster by selling to another vendor or at
a discount to present customers. Inventory that sits too
long could become that much-needed money right now!
Frugal Duchess Comment: I'm checking our home cabinets and closets. We're looking for stuff that we could sell on eBay, giveaway or recycle.
4. Energy Costs: Every business must
look at energy costs as a serious cash vacuum after the astounding rise
of oil and fuel prices of 2006.
Whether it is the cost to operate machinery, heat/cool the business facility, or buy fuel for company vehicles, thousands of dollars can probably be saved by analyzing the current energy consumption methods.
Robinson suggests opting for more fuel-efficient vehicles
and to be sure that the business office, warehouse or
factory uses the most energy- efficient heating and
cooling systems available on the market. Examine the
facilities for areas that may be causing a loss of
energy.
5. Debt Management: Manage the business debts wisely.
Refinance at lower interest rates. Keep payments up-to-
date so no penalties will have to be paid. Renegotiate
payment plans that are hurting your cash flow. Debt does
not have to hinder the business. It can be managed and
overcome if the effort is put forth.
"Entrepreneurs can keep their company afloat when difficult times
hit if they take these steps to improve cash flow. Adequate cash
flow is the key to long-term success," states Robinson.
About KPR Funding LLC
KPR Funding is a consulting firm that provides funding options to
help businesses with their cash flow." More info about
managing and improving cash flow can be found at their website
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