Posts Tagged ‘start up’

Starting a small business? Here’s how to keep a steady cash flow.

Posted January 21, 2009 by Bernz

Small businesses are popping up 10 times the average rate due to all the recent layoffs. It’s always fun to learn how people got their business ideas. Many of the ideas aren’t original but seem better because they offer a new spin or cater to an under served market.

Statistics from the Small Business Association reveal that companies with fewer than 500 employees represent 99.9 percent of the 25.8 million businesses in the U.S. Two-thirds of these businesses fail within two years while only 44 percent survive four years. Much of this failure rate is due to businesses closing because they don’t have the necessary cash to keep their companies running. Here are some steps you can you take to maintain a steady cash flow.

Network Strategically. Find ways to pair your services and products with larger companies whose customers share the same characteristics as your target market. For example if you’re a house painter, your business may slack off during winter months. However apartment property managers routinely have maintenance projects, especially when tenants move in or out. A partnership with a larger company can be a bread and butter account.

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