Cash Flow for Small Businesses

One of the big issues facing small businesses is trying to figure out where your money is going. Many times you can show a profit on an income statement, but the cash flow (real money in, real money out) will be almost negative. Here's a tip. The cash flow CAN NOT be negative. When it hits the red line, it is usually game over, because there is no money to pay the bills.

Don't ever think you're too busy making sales and working in your business to worry about your cash flow. This way of thinking is the same as burying your head in the sand and just hoping everything will work itself out.

Click here, http://www.volstate.edu/TSBDC/tools.php, for a financial worksheet to get you started.

Remember, your cash flow is not the same as your profits. You can have a profitable business, but a negative cash flow. Prepare a monthly cash flow statement to ensure that you don't get caught unexpectedly without enough cash to handle your day-to-day operations.

Do not hesitate to call or email the TSBDC for assistance in putting together your cash flow.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Interviewing

One question that I get quite a bit is, "How can I make sure that someone can do, what they say they can do, during an interview?". Unless you can get them to agree to a polygraph test, you will have to rely on your own sleuthing skills. One way I have found to be successful for the small business owner is to ask behavioral style interview questions. Behavioral style interview questions ask the candidate how they have handled a particular situation in the past. You may ask for a specific example as well. Instead of asking “how do you handle stressful situations”, ask “how did you handle a stressful situation at the last company you worked for and what was the result”. This prevents elaborate, made-up answers that may or may not have any actual substance to them. What you are looking for is someone who has experience with the skill set that you are seeking. To find more examples of behavioral style interview questions review this link http://career.berkeley.edu/Article/010928a.stm.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Data Backup for Your Small Business

Eventually, almost every computer crashes and takes your data with it. Data files such as, QuickBooks®, Microsoft® files (Outlook, Word, Excel, Access, PowerPoint), pictures, industry specific software databases, or anything else could be lost forever. This can be detrimental to any size business. You need to make an effort to back you data up daily. You can use a variety of methods ranging from something as simple as a DVD backup to something a little more substantial, such as an external hard drive. A flash drive is convenient and easy to use, but not exactly a long term solution.





If you are looking to use an online service and do not have a substantial amount of data, try using a free or inexpensive service to begin with. Consumer Reports suggests the data-backup service Mozy (http://mozy.com/). They say it offers the most features and control, scheduling backups is easy, and customer service is quick and helpful. The service is free for up to 2GB of data, and $4.95 per month gets you unlimited storage. Another service, Xdrive (http://xdrive.com/) lets you store up to 5GB for free; $9.95 per month gets you 50GB.



I’ve always said that the best option is the one that you will personally remember to use. If you feel you need additional assistance, it is always a good idea to consult an I.T. professional.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Time Management Tools

It usually seems that something is always stealing the business owner's time. It's time to enlist some help. The best way to embrace time management is to use one of the following tools:

1. A Day-Timer® - This uses a proven system that is inexpensive and allows you to easily prioritize tasks and document important items.
2. Microsoft Outlook® - This software is a robust calendar, task list, and contact database all rolled into one. It gives you the ability to set electronic reminders that will keep you on task, keep track of all of your tasks and allow you to prioritize them, and keep up with everything that you do with a contact.
3. A PDA/Cell Phone – You can use virtually any pda or cell phone to keep contacts and to set reminders of important activities. In many cases a pda or cell phone can even sync up with Microsoft Outlook® to keep you on track on the road or at your desk.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.