Your small business customers are entrepreneurial spirits with a particular talent or trade. While passionate about their craft, the financial aspects of running a business often present new challenges they are unprepared for.
Even experienced business owners encounter new elements of financial management as their businesses grow and expand. Handling the financials effectively is in the best interest of both the business and its lender.
In our recent workshop at the Greater Des Moines Partnership's Small Business Summit, we covered the key principles for effective small business financial management. We turned our presentation into a SlideShare, so you can glance through and see what we recommend. Here's a quick overview of the tips:
- Maintain accurate, complete, and timely financial statements.
- Protect your personal credit.
- Understand the cash conversion cycle.
- Know the formula for funding the growth of your business.
- Have sufficient working capital.
- Keep a manageable level of debt.
- Coordinate the timing of vendor payments.
- Hire diverse and skilled employees.
Feel free to share this resource with your small business customers.
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