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UNDER10 Workshop: CASHFLOW

August 5 @ 3:30 pm - 5:00 pm

Free

Starting a small business takes patience, perseverance, and a lot of hard work. It’s not easy to launch a new venture: Data from the U.S. Bureau of Labor Statistics shows that nearly half of all startups fail within the first five years.

There are some common reasons why small businesses fail. Understanding the obstacles that other business owners have faced can help you prepare to navigate these specific challenges. Below are the top three reasons why small businesses go under and tips on how you can avoid the same fate.

Challenge No. 1: Cash flow problems

According to SCORE, 82% of small businesses fail due to cash flow problems. Cash flow is a blanket term that has many underlying roots. Cash flow is simply a metric that indicates how money is coming in and being spent at your business. Cash flow issues can result from a lack of funding, poor budgeting, or inventory management issues, among other things.

There are a few ways to mitigate this risk, although it’s worth reiterating that negative cash flow is often an indicator of a different issue. First, avoid big expenses in your first year of business.

“As your business launches and grows, there will be a push and pull between funding and supporting that growth, and being conservative with your spending,” wrote SCORE. “When in doubt, stay conservative. The ‘lean and mean’ startup headset — and the concept of a minimum viable budget — is your friend.”

A lean operating budget is a good starting point, but it isn’t the only way to manage your cash flow. Spend time tracking your inventory, building cash reserves, and making sure your accounting is running smoothly. Many experts recommend working with a certified public accountant during the first few years after your business has launched to ensure your accounts receivable/accounts payable systems are working well and that you have enough set aside for taxes.

The other side of cash flow is revenue, or financing, for new businesses. Many small business owners struggle to find loans, grants, or investors to fund their ventures. Look for unique funding opportunities for small businesses, such as government loans, business diversity grants, or industry-specific grants.

CONTENT from The US Chamber https://www.uschamber.com/co/start/strategy/why-small-businesses-fail

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Details

Date:
August 5
Time:
3:30 pm - 5:00 pm
Cost:
Free
Event Category:

Venue

The Grindstone
20 4th St E
West Fargo, North Dakota 58078
+ Google Map
Phone
(701) 541-1073

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