If “location, location, location” are the first three rules of real estate, the first three rules of small business money management are “cash, cash, cash.” And if managing cash flow is important any time of year, it’s even more challenging during the critical holiday season. In every business, there’s a lag between money going out …
If I’m Making a Profit, Why am I Broke?
You’ve filed your taxes, right? Or at least filed for an extension? Either way, you had to somehow come up with money to pay the IRS. Ouch! That hurt. Here’s the good news: You run a profitable business. That’s why you owe taxes. But why was there no money in your bank account? Here’s a …
Case Study: The Bank of Starbucks
Excerpted from Entrepreneurship: A Real-World Approach, 2nd Ed, now available Challenge: To improve cash flow, reducing the unpredictability of sales for a nonessential purchase Solution: Find ways that encourage customers to prepay for goods long before they purchase them, and invest those funds safely There’s a pretty good chance the last time you ordered a Starbucks …
