By Dania Mahmoud

Cash flow is exactly what it sounds like: the amount of cash going into and coming out of your business. However, this isn’t an instance you’ll want to “go with the flow.” Keeping track of your cash flow and developing strategies to put more cash in your system and keep it there is an important step towards small business success.

Cash is one of the most important assets a small business can have. Expenses can’t be paid off without it, and with loans hard to come by and even harder to pay off, good cash flow management is more important than ever. 

Here are 5 tips for managing your business’s cash flow: 

1. Keep an emergency cash reserve. 
Few things are more relieving than the knowledge you have a nice pile of cash to fall back on should things go wrong. Save enough cash to cover 3-6 months of your business expenses-- and if you save even more than that, even better! A cash reserve can help you pay off your expenses during slower months, but it will come most in handy in situations you least expect.

 Do you know your chances of having a business emergency? It’s a hard question because emergencies are unpredictable and often unpreventable. The only thing we know about emergencies is that they are 100% inevitable. Planning for the inevitable will give you and your business a boost when you need it most. 

2. Ask your consultant for a customized statement. 
You can’t manage your cash flow if you’re not keeping track of it. Creating a cash flow statement is an important step towards cash flow management. This step is particularly important for startup businesses so that they know when they have reached the “break-even” point, when their income matches their expenses. Of course, a small business in any stage will not want to have doubts about where its money is coming from and where it’s going to. One way to stay on top of your cash flow is by using an online template of a statement. 

Of course, managing your own cash flow statements can be overwhelming, especially when the numbers are getting larger and the vendors more varied. You are busy with  a million other day-to-day tasks, and, despite its importance, keeping up with a cash flow statement might be far from your mind. You can ask your business consultant to step in and create a customized statement that will make cash flow management simpler. When a consultant is managing your cash flow statement, communication is key to staying in the loop and making informed financial decisions. Meet with your consultant about your cash flow on a monthly basis to discuss any changes or patterns in your statement. 

3. Entice your customers to pay sooner rather than later. 
Having cash at your disposal is crucial to your ability to pay off expenses and stay off loans. That means you’ll want your customers to make their payments as soon as possible. You can offer cash-only promotional incentives, like discounts or buy one get one free items, to entice your customers to make immediate payments. You can also instill payment rules to ensure you have cash in your system at all times. One way to do this is by asking your customers to make partial-cash deposits at the time of purchase. 

If your customer is over-due on a payment, try to handle the situation on your own, first. Call the customer regularly before going to a collections agency-- the agency will take a large cut of the profit. 

4. Communicate with your vendors about payments. 
Keeping up a good relationship with your vendors is always a good idea. If you need an extension on a payment, it will help if your vendor already understands your financial situation. 

Of course, making payments on time whenever you can is crucial for your cash flow. Pay attention to vendors’ terms so that you can make payments in the most convenient way for your business. If a vendor gives you a 30-day payment period, use those 30 days to your fullest advantage. Paying earlier than the deadline will only take cash out of your business sooner, and you’ll want to have control over your funds for as longs as possible. 

5. Ask your CPA about changes in tax payments. 
If you’re predicting future cash flow, you’ll need to take taxes into account. A certified public accountant is always a step ahead of the latest changes in tax policies and payments. 

Touching base with a CPA regularly will help you better predict what your tax expenses will look like, which in turn will give you an idea of how much cash you’ll have after tax season. 

By Dania Mahmoud


If you read last week’s blog, you know that one of the major advantages small businesses have over their corporate competition is customer service. While bigger businesses usually don’t have the resources to build sustainable relationships with their customers, your personable environment can be much more inviting to customers who want to know that they are a priority. 

This week, we are going more in-depth to the tools you can use to make your relationship with your customers something that can’t be imitated. By applying an open and honest attitude to your service, your customers will come to trust you to get the job done right. 

Here are 5 tips for improving your customer service: 


1. Build relationships based on mutual benefits. 
University of Houston Professional Sales professor Amy Vandaveer says when it comes to business, “You can win at all costs once.” That means customers will be one-time buyers if you exploit their needs to meet your own. 

Instead, create a relationship based on mutual trust that leaves you both satisfied-- this method may not win you the most immediate cash, but it will keep you customers coming back. If you are aware that a deal your customer is about to make with you is not in her best interest, don’t make that deal! Suggesting an alternative will not just leave your customer more impressed with your business; she’ll build a genuine trust in your service, which makes her that much more likely to choose you again and even recommend you to friends. 

2. Keep an open ear and an open mind. 
You can’t meet your customers’ needs if you’re not listening to them. You might have strategies already in place to help your customers, but remember that one size rarely fits all. Keep your customers engaged by asking them if they have any concerns throughout the buying process. You can also gather opinions more formally by periodically surveying past customers. 

The listening process doesn’t stop at having an open ear. You need to have an open mind, as well. Be willing and ready  to customize the processes you have in place to meet your customers’ expectations. While you shouldn’t be changing the structure of your business for any one individual, you can build a certain amount of flexibility into your service-- whether it’s in the delivery of a product, the bundling (or unbundling) of purchases, or the length of a guarantee, chances are that you can find a way to meet your customers happily in the middle. Remember that big businesses rarely have that same flexibility, so use this to your advantage! 

3. Make good on promises. 
We’ve all been taught to keep the promises we make. But when business gets tough, honesty and accountability have a tendency to take a backseat. 

Don’t let your business fall into this trap. Prioritize your promises to your customers so that they know their patronage is important to you. And if it turns out you really can’t meet a promise, come clean. We all make mistakes from time to time, and your customers would rather you admit to yours rather than ignore their requests. Back up your apology with an outline describing how you’re going to resolve the problem your mistake created. Your customers will appreciate your transparency, and when you come through on your resolving the issue, their satisfaction will not decline. 

4. Have a plan for conflict resolution.
Transparency is especially important to remember when dealing with conflict. In business, conflict is bound to arise. Mistakes are made or miscommunications occur; it happens, and it’s inevitable when you’re interacting with customers. But if you want to be able to bounce back from conflict, you need to have a plan in place before things go wrong. 

Have a process for resolving conflict that takes attention away from emotions or personal dislike by focusing on the problem at hand. This keeps things professional and, if conflict resolution is going really well, positive. If you use affirmative language by telling customers what they can have rather than what they can’t, customers will be more likely to respond just as positively. Showing your customers you’re committed to resolving an issue will allow them to build their confidence in you once more. 


However, while it’s important to demonstrate your commitment to your customer, sometimes conflict resolution is beyond your power as a small business owner. In those cases, you’ll be glad to have had your bases covered early on. Make sure to have a solid connection with a lawyer so that any legal disputes that happen to come your way can be resolved as painlessly as possible. 


5. Build a strong work team. 

Customer service cannot flourish without a workplace that has a strong sense of team. If your employees know that they can rely on each other to get the job done, your customers will trust that they can, too. 

You can establish a strong team of trustworthy employees when you lead by example. Demonstrate your positive interactions with customers and willingness to meet individual needs. Your employees will see that customers should be a priority, and will work that much harder to keep them happy. 


Bloomberg Business
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The Guadrian

By Dania Mahmoud


We know that bigger is not always better-- just look at David and Goliath. We also know that it’s easy to be intimidated by size, which is why you might start sweating when facing big competition. Take a deep breath; there are so many advantages to owning a small business, and as an innovative entrepreneur, you’ll be able to tap into these strengths once you identify them. 

 So how do you get ahead of your big business competition? Building a brand is the first step. The next is building loyalty to that brand. When you have a base of customers coming back to you (and bringing their friends!), you’ll be able to cater your business to their specific needs. That means your brand will be more personal to them, which is something big businesses struggle with. 

Your tight-knit community also extends to inside operations. When employees feel a personal connection to their boss and their brand, their enthusiasm-- and the quality of their work-- soars. 

Here are 5 more tips for competing with big business: 

1. Understand what matters to your customer. 
Bigger corporations struggle when it comes to giving their business a personal feel. Small businesses, on the other hand, have the resources to form a real connection with their customers. That doesn’t just mean talking about the weather; move past small talk and show your customers you’re devoted to service by taking the time to really understand their needs. 

One way to do this is by checking in with past customers on a regular basis. Are you still meeting their needs? What do they feel could be improved? Developing a survey system that allows you to understand  and meet your customers’ needs will make you a stand-out among less flexible corporate structures. And when you’re customers are happy, chances are they’re recommending you to their friends, which means a larger, loyal following for your brand. 

2. Develop a mobile marketing plan.
Connecting with your target audience through a variety of channels is extremely important in today’s hyper-social culture. That means interacting with your target market through online methods can be just as important as in-person communication. Having a comprehensive web presence is key to staying connected with your current customers, and it can help you make valuable new connections, as well. 

However, a lot of companies have a digital component these days. How do you make yourself stand out? One way is to figure out where your target market is going. Do your customers like sending tweets, or do they prefer posting pictures on Instagram? Do they check their email frequently, or do they like to receive Facebook updates? Understanding your demographic’s online habits can help you reach it more effectively and personalize your posts to peak its interest. 

3. Provide employees with a great work culture.
How many of your friends who work for a big corporation can say they’ve met the CEO? How many know the names of their manager’s kids? For the most part, big businesses do not have the resources to connect with their employees on a personal level. A small business, on the other hand, often becomes its own family, a community that includes both customers and employees. 

Never underestimate the power of bonding with your employees. When you have workers who are loyal to your company, you have a lower turnover rate and a higher standard of quality. Take the time to understand your employees’ strengths and goals; this will help you determine the best motivation strategies.

Dedication to a brand starts from the inside. When you foster a work environment that is supportive and inviting, you are creating a culture of dedication. Employees who love their job will work harder to maximize quality and efficiency, which will ultimately bring your customers back every time. 

4. Stay ahead of industry trends. 
In today’s world, industries change, and industries change fast. If you can keep up with the pace, you’ll become known for your innovative approach to business-- that’s a quality all entrepreneurs should have the advantage in. 

If you subscribe to an industry-specific magazine, valuable articles about the latest trends in your market will be delivered right to your mailbox. And if you don’t want to shell out the bucks for a glossy magazine, you can always join an online forum and communicate with industry experts in real-time. 

Don’t forget to listen to your network, as well; keeping your ears open when talking to industry leaders could clue you in to the trends you need to be on top of. And if you find a helpful article, share it with your friend or mentor. Spreading knowledge means spreading a sense of community, and the closer your community is, the more valuable it becomes to you as you climb to the top of the trending topics list. 

5. Be confident in what you offer-- including the price. 
What does your business offer that no other business can? Pinpointing your greatest strength is crucial to staying on top of your big competition. 

Chances are, that greatest strength is not price, and that’s okay. As a small business, you might not have the ability to match the prices bigger corporations can offer. Don’t sweat this; if you’re confident that the quality of your product or service is top-notch, or that your customer service is unbeatable, then you know you’re worth the price on the tag.  And when you’re confident in yourself, your customers will be, too. Almost everyone is already willing to pay a little more for something that meets their standards of excellence; all that’s left for you to do is brand yourself as excellent. 

Don’t forget that speaking with a business consultant can take your brand to new levels, which means stronger brand loyalty, too. Fill out our contact form to  let us know how we can help you stay competitive with big businesses! 



Sources
Small Business Trends