Keep,The,Cash,Flowing,Article, DIY Keep The Cash Flowing
When starting a new work at home business it is very easy to become consumed by it. We spend so much time trying to get the business up and running that we may end up becoming burned out and lose our motivation. There is so much to learn and Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in
*Article Use Guidelines*This copyrighted article is free for you to use as content inopt-in publications, or on your Web site. When you use it in opt-in publications, or on a Web site, please include the resourcebox. However, please do not charge for it. Please DO NOT include it inCD compilations, paid-subscription sites or in publications forwhich you charge. **Summary: Without a steady cash flow, your business dies. Here's how to keep the cash flowing when it's not.Category: Small BusinessWords: 650Keep The Cash FlowingCopyright © 2003 by Angela Booth http://www.digital-e.biz/ Without a steady cash flow, your business dies. This means thatyou need to be focused on your cash flow situation at all times:you need to know how much cash you have and how much is comingin. If you can see that you're likely to have problems, the timeto take action is --- NOW. This constant awareness of your finances is especially vital forcreatives. Writers, artists and designers are in a uniquesituation. Not only are we creators, we're also marketers andsalespeople. Combining these functions is so difficult that attimes it feels as if its impossible. However, it can be done.Whether you're starting your own business, or have been inbusiness for a while, here are some ways to keep the cash flowingwhen business is slow ---=> Start your business with six months' worth of expensesIf you're going fulltime in your own business, you need acushion. It's best to have at least six months' worth of expensemoney to keep you going. Then, when you've been in business for ayear, always keep at least three months' worth of expense moneyin your account. Do whatever it takes to get that three months'cushion.=> No cash? Moonlight until things improveBusiness works in cycles. It's always either feast or famine. Youeither have more work than you can handle, or not enough. Ifyou're going through a famine cycle --- and these can last forseveral months --- moonlight. There's a reason actors andactresses work as bartenders and taxi drivers. :-)=> Consider working part-time for someone elseJust because business is slow at the moment, it doesnt mean thatyour business idea is terrible. To ease the situation, take apart-time job. Although you'll be busier than you'd like to be,the fact that you have money coming in regularly lets you relax,so that you can enjoy working in your business again.=> Get an anchor client or productYou need an anchor client. This is a client who brings in aquarter of your earnings --- you may need three or four clientsto achieve this. These are regular clients, the bedrock on whichyour business is based. They pay your expenses, and keep you inbusiness.If youre a writer or designer, you may also have an anchorproduct. This may be a book which brings in royalties every sixmonths, or artwork you've sold under license for which youreceive royalties. It's worth working sixteen-hour days for a few months to createan anchor product. Once you've created it, the anchor productworks for you.=> Follow up on slow/ no payersYou can't afford to let people owe you money indefinitely. Thismeans that youre providing interest-free loans. Worse, ifsomeone owes you substantial money, you're an unsecured creditor.If they go down, they'll take you with them.Chase up slow payers. Send a friendly reminder email or fax oncea week --- every week, until they pay.=> Don't pile up debtTry not to go into debt. It's not worth it. It's better to workpart-time for someone else, or to cut back on expenses, ratherthan go into debt. You dont know how long the slow period willlast, and saddling yourself with debt is a dead-end solution.It IS possible to run your own business, and be relaxed about it,knowing that you can survive the bad times. If you need to go andwork part-time, dont look on this as failure --- it's a win.You're doing what you need to do, to keep your business viableuntil the sun shines and the good times roll. You can do it.*** Resource Box ***To read more articles by Angela Booth, visit the Digital-e Web site--Information for writers and creatives.Ebooks, free ezines, Creatives Club. Love to write? Turnyour talent into a business! http://www.digital-e.biz/
Keep,The,Cash,Flowing,Article,