Every business needs positive working capital. That’s especially true when it’s possible that a recession could be on the horizon—but it’s also true even when times are booming. Working capital opens doors. It creates potential and possibilities. Here are some of the core reasons why businesses need to have working capital on hand.
You want to reach the next stage of your business. But how? Sometimes, the old adage is true: You have to spend money to make money. Working capital makes it possible for companies to start scaling.
About 67 percent of small businesses fail within their first decade of existence, states the Small Business Administration. A huge part of the problem stems from ineffective planning that leads to ineffective use of the business’ working capital.
Many farms are finding it difficult to make ends meet. Not only is the recession potentially coming, but there are many economic uncertainties regarding foreign trade. Some farmers, like those who grow soybeans, have been left adrift by these changes. That doesn’t mean that farms aren’t going to survive, but it does mean they need […]
Working capital; it’s what makes or breaks a business. Most businesses that fail do so because they don’t have enough cash at hand. They might have great clients, fantastic assets, and everything else going for them, but they need actual cash to continue operating. Here’s what you need to know about building your working capital.
Avoiding errors when you calculate working capital helps you understand the true picture of your short-term obligations. Let’s take a closer look at how to calculate your working capital properly and the consequences of getting it wrong.
Working capital is the lifeblood of your business. This measure lets you test your ability to pay your short-term debts while planning ahead for growth or busy periods. It also identifies cash shortages and helps you pinpoint where your cash is tied up. Working capital loans offer one solution to this dilemma.
Some industries experience peak periods, such as ski resorts in winter, with many businesses enjoying a bump during summer seasonality. People want to be outside in the warm weather, and that usually means they spend more money. Don’t miss out on increased sales due to a lack of cash flow for your business expenses. Instead, consider […]
Are you an innovative entrepreneur with a summer seasonal business such as lawn care, outdoor adventure or guided tours? If so, how do you deal with the swings of your operational costs in the off-season? The type of business you have drives your operating cycle but may not coincide with your cash flow needs. Let’s look at ways […]
If you believe expanding your business could dramatically improve your bottom line but aren’t sure if it’s worth the cost and hassle, you are not alone. Consider the common reasons that businesses expand before making a final decision. Then, review your options to move forward and grow your enterprise.
