But we know that small business owners like you don’t sit still – can’t sit still – or your business will die. The good news is there are plenty of companies, from spirited startups to established old school brands, who want to help you survive. So let’s take a look at what will happen to impact the financial opportunities for small business next year.

I see two mega-trends that will impact small business in a big way in 2013. Those are cloud computing and mobile technology:

Cloud Computing

Cloud Computing has been around for a while now, but small business has been slow to embrace using the cloud to run their business. That looks like it’s turning a corner. According to the Microsoft SMB Business in the Cloud 2012 research report (PDF), the number of very small companies using a paid cloud solution will potentially triple in the next three years and those companies will be using multiple cloud apps.

The report states that many of these businesses will use as many as five apps to help run their business. That’s good news for small business owners and for cloud service providers.

Mobile Technology

Mobile Technology is exploding with the easy availability of smartphones and tablets. It’s rare that a small business has not yet embraced this technology in some way.

According to the ATT Technology Poll (PDF), nearly all small businesses (96%) use wireless technologies in their operations, with almost two-thirds (63%) indicating that they could not survive – or it would be a major challenge to survive – without wireless technologies and 85% of small businesses reported using smartphones for their operations.

Despite being a relatively new technology device, two-thirds (67%) of small businesses indicate that they use tablet computers.

Both of these mega-trends open up a world of possibilities for small business to help them run their businesses leaner than ever before. That can mean plenty of freed up cash to help your business grow.

Here’s how you can leverage those mega-trends for your business:

Lose the Pen and Paper for Good

If you’ve been stubborn about moving from paper for your invoicing, now’s the time to make the move. This area of the cloud is maturing quickly and there are plenty of competitors who want to help you get those invoices out so you can get that hard earned cash in your pocket.

One of particular interest is SageOne, an all-around tool that can help you not only get those invoices out the door quickly, but also track project time, manage your money and help your team collaborate. You can do it all on any device. No need to be stuck in an office. That means you and your team can be flexible and still be on top of your financials. But they’re not the only game in town. There are plenty of cloud-based invoicing apps you can choose from depending on the needs of your business.

Check out this comprehensive list of online invoicing apps here on Small Business Trends. There are so many apps it could boggle your mind, so make sure you define your specific needs and requirements before you choose.

Don’t Hire One Person, Hire a Crowd

Crowdsourcing is becoming increasingly popular and can create a big advantage for your business. It allows you to leverage the power of many rather than just one. If you need to outsource a task and would like the power of many minds, crowdsourcing is the right thing for you.

It’s still a growing trend, so there are many markets that can open up in this area, but for now you can crowdsource a new logo design for your business (99designs), raise funds for a new creative project (Kickstarter), and have a comprehensive customer support knowledge base (GetSatisfaction) – to name a few.

It’s worth taking a look the next time you need some help.

Getting Funding Hasn’t Gotten Any Easier, But the Network Has Grown

One thing that’s always been tough for small business is securing funding for their business venture. That’s one constant that never seems to budge. When you need money, it’s very tough to get it. Then when you become successful, the companies who have funds to help seem to come out of the woodwork.

The traditional way to get the money you need is to tap into your favorite small business banker and see if they can help you or find an SBA loan vendor that can walk you through the laborious process to get much needed funds. The good news is that the network for small business funders has grown. No longer are small businesses restricted by their local network. The Web has spawned networks, such as Biz2Credit that will help connect you to a lender depending on your loan needs.

Accounting Software Choices are Growing Too

All you have to do is mention accounting and you’ll hear a collective groan from small business owners around the world. That’s not a good thing since cash flow is a key factor in small business success. But choices have been limited in the past, putting small business in a “take or leave it” position when it comes to software – and a lot of them just decided to stick with paper.

Lots of companies are seeing the opportunity to help you with this area of your business. GoDaddy has dipped its toe in the accounting pond through acquisition of cloud-based accounting app Outright that helps organize small business finances and automate bookkeeping tasks. There are some interesting new entrants moving into this space too like Wave Accounting from Canada and Xero from Australia, both with the objective to make accounting simple for you.

Who Needs a Computer, Just Use Your Phone

Swipe devices for mobile have radically changed the landscape for small business. With vendors like Square and PayPal Here, no matter where you want to sell your products or services you can do it. It won’t break the bank either. In addition to getting paid on your phone, there are a ton of financial apps that can help keep you on track. (Google Play lists over 1000.) There’s everything from expense tracking apps like Concur and Expensify to full-fledged banking apps – just to name a few.

So there you go. Moving your business functions to the cloud and leveraging your mobile technology can help your small business be leaner and meaner than ever before. And that will produce better results for your bottom line.

Are you embracing the cloud and have you become more dependent on your mobile to run your business?

The post Financial Management Trends And Tactics appeared first on Small Business Trends.

There are so many tax related activities required for small business that the IRS publishes a small business tax calendar every year. It’s a really useful tool that is normally released during the fourth quarter of the year. It’s out of stock now, but you can still view a handy interactive copy of the tax calendar online. Plus if you want to make sure you don’t miss any deadlines, you can subscribe to the tax calendar in your outlook calendar.

Since taxes are top of mind right now, I checked in with two of my favorite tax professionals, Suzette Flemming, President of Flemming Business Services Inc. and Kay Bell, Tax Journalist and author of The Truth About Paying Fewer Taxes, to get their thoughts on the key obstacles for small business owners, where they take some missteps and what they should do about it.

Key Obstacles for Small Business

“The biggest obstacles for small business owners are knowledge and understanding because tax law is constantly changing,” says Flemming. “Most small business owners have no time or desire to keep up with these changes.

Nobody thinks about taxes when they start a company. Did you?

According to Bell, “The variety of taxes that a small business faces often is a shock to start-ups. In addition to the well-known federal income tax, businesses also face various types of state and local taxes, including income, franchise and/or sales taxes. If you have employees, you must deal with payroll taxes, including not just payments but information filings to the government and your employees. Many businesses also face specific excise taxes. And even the type of business entity you’ve chosen (sole proprietor, partnership, LLC) affects your taxes. Too often a small business overlooks or misfiles some of these tax responsibilities.”

Is your head spinning yet? That’s why so many small business owners take the wrong steps when it comes to taxes.

Common Tax Mistakes Small Business Owners Make

Flemming and Bell both agree that the most common mistakes are not keeping good records, not planning to pay taxes – you know that old saying the only sure thing in life is death and taxes – and not setting aside the funds to pay the taxes you owe.

You also need to be conscious about classifying workers properly. Classifying workers as contractors when they should be employees could get you in a heap of trouble. Make sure you follow the IRS guidelines carefully to save yourself from future headaches (and potential fines and penalties).

Do It Yourself or Hire a Professional?

It’s very tempting to be a “do it yourselfer” when it comes to filing taxes. After all, there are plenty of software packages that will help walk you through the steps. But Flemming and Bell both think you would serve your business better by focusing on what you do best and hiring a professional who specializes in small business to prepare your taxes.

A professional knows the ins and outs of allowable deductions and can help you not only file properly, but will make sure you get the deductions you deserve along with identifying things you can do to reduce your taxes for the following year.

And remember, small business taxes aren’t just a do it once, set it and forget it activity. Bell notes that a tax professional can help you manage and meet these ever-present deadlines.

So where do you weigh in on small business taxes? Are you confident enough to do it yourself or do you place this important activity in the hands of a trustworthy professional? Tell me about your approach by leaving a comment.

Editor’s Note: this article was previously published at OPENForum.com under the title: “Take Steps to Minimize the Pain of Small Business Taxes” It is reprinted here with permission.

The post How to Minimize the Pain of Filing Small Business Taxes appeared first on Small Business Trends.

Red alert folks!

You must have controls in place in your business to protect what you have worked so hard to achieve. Yes, it can happen to you and your business will suffer for it. Here’s proof.

The Association of Certified Fraud Examiners (ACFE) survey conducted earlier this year reported that more than half (55.4 percent) of respondents said the level of fraud has slightly or significantly increased in the previous 12 months compared to the level of fraud they investigated or observed in years prior. Additionally, about half (49.1 percent) of respondents cited increased financial pressure as the biggest factor contributing to the increase in fraud, compared to increased opportunity (27.1 percent) and increased rationalization (23.7 percent). There’s no time like the present to make sure you are protected.

Here are six things you can do to safeguard your cash flow.

1.  Hire properly — Yes, I know your niece (nephew, neighbor, friend’s husband or wife, trusted colleague, etc.) is someone who you’ve known for a good long time. They are someone you trust. But that doesn’t mean you can skip the steps to make sure they are a good fit for your business. No matter who you are hiring, you need to conduct a background check to ensure there are no surprises. And you need to conduct an interview to confirm their values are the kind you want demonstrated in your business.

2.  Spread the wealth (so to speak!) — Responsibilities for handling financial transactions in your business should never be assigned to just one person. You should never allow only one person to perform the task of recording and authorizing incoming and outgoing transactions. At least two people should share this responsibility. And by all means make sure that this person isn’t the only one with signature authority.

3.  Check and balance — Audits should be commonplace in your business. At least once per quarter there should be a scheduled audit of your financial transactions. Plus a surprise audit on a regular basis will keep everyone on their toes too. Internal audits are fine as long as they’re not conducted by the people who process your financial transactions, but you’ll want at least one audit per year conducted by an outside party.

4.  Open communication — Your company culture should foster an environment that makes it easy for staff to raise issues if they see them. No one wants to be a tattletale and often people won’t report what they see because they are afraid of what the repercussions might be. Give them a safe and anonymous way to report things that they think are not quite right. They could save you thousands!

5.  Take a break — Require everyone in your company to take a vacation of at least a week. Often fraudsters will avoid a vacation like the plague because of their fear that their actions will be uncovered. Don’t let tasks sit idle while they are gone. That won’t help protect your business from fraud if everything is waiting for the same person when they return to work.

6.  Model integrity — Trustworthy people work for trustworthy employers. If you like to bend the rules, you are implicitly giving your staff permission to do the same. Just don’t do it. Be the model they want to emulate. Don’t lose your business because one of your staff decided to help themselves to your profits. Take the time to implement proper financial controls and you’ll sleep a lot better at night.

This article was previously published at the OPEN Forum and is republished here with permission.

The post Protect Your Cash or Lose Your Business appeared first on Small Business Trends.

It’s hard to keep your cash flow on an even keel when people won’t pay you for the work you’ve done. To have good cash flow in your business, it’s important to have good credit and collection policies. What percent of your accounts receivable are currently overdue? If you have a lot of outstanding receivables, it’s time to take a hard look at what action you can take to minimize your risk. Here are some steps you can take to make sure you get what you deserve.

Have a Credit Policy and Procedure Manual

Your credit procedure will define how you implement offering credit to your customers. Credit procedures should include who will get credit, how much credit you will extend and when it’s necessary to get a credit report for the customer.

Your credit policy will define what steps you will take to collect money when the customer has not paid. This should detail when the customer will be contacted, how they will be contacted and what steps to take at what intervals to get the highest return from the customer.

There are a lot of issues you need to consider depending on what type of business you own. You can find a good checklist of questions at the CoveringCredit.com website.

A good credit policy and procedures won’t do you any good if your contract negotiation and accounts receivable processes are a mess. Here are some things to consider.

If you must issue invoices to collect your fees, make sure you get them out the door as soon as the work is done.

Wen you negotiate a contract to complete work, set it up so you get paid by deliverable. That way you have cash coming in the door periodically rather than waiting until the project is done.

If you provide a service where you can place the deliverable in a transition state before final delivery to the client, do it. Give them an opportunity to give the project a final okay followed by payment before you release the product.

Provide an incentive for your customers to pay their bills. If you normally require payment within 30 days, offer a small percentage off (5% to 10%) if they make the payment in 15 days.

Give your customers options for paying you. Offer check, credit card, PayPal, money order, and cash (yes!). The more options you offer, the less excuses people have for paying.

Your business can’t survive if you don’t have enough money coming in to pay your bills. Having to spend time chasing down money can be a huge expense you just can’t afford. Taking the time to put the proper credit policies and procedures in place to ensure you get what you deserve will save you a lot of time and hassle in the long run.

The above article was previously published at OPEN Forum and is republished here with permission.

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About the Author: Denise O’Berry is a small business expert who provides tools, tips and advice to help small business owners be successful. O’Berry is the author of “Small Business Cash Flow: Strategies for Making Your Business a Financial Success.” Her blog can be found at Just for Small Business.

The post Proper Credit Policies and Procedures Can Help Minimize Your Cash Flow Risk appeared first on Small Business Trends.

There are plenty of groups talking about how the signs for small business are improving. Let’s take a look at a few of the statistics.

PNC Economic Outlook Survey

According to the report from the PNC Economic Outlook Survey, their new fall findings support PNC’s forecast that the U.S. economy has started a moderate U-shaped recovery in the latter half of this year that will continue throughout at least 2010. The PNC survey, which began in 2003, gauges the mood and sentiment among small and mid-sized business owners, who represent the bedrock of the American economy. The highlights include:

• Small business owners are less pessimistic about their company prospects than they were six months ago. In the spring of 2009, 36% were pessimistic compared to 25% during the fall 2009 survey.
• The economic stimulus has yet to trickle down to small business as 79% indicated they had not yet benefited.
• Overwhelmingly, 96% of small business owners said the economy has not yet begun to improve, but some (13%) think it’s on its way. This is twice as many as indicated such in the fall 2008 survey.

Small Business Administration (SBA)

The SBA had a tough year. At its fiscal close on September 30^th, they had approved less than 45, 000 loans, down 36% from 2008 and 56% from 2007 according to a report from WSJ.com. The good news is that, although slow, the American Recovery Capital (ARC) loan program which is part of the economic stimulus package seems to be picking up as more banks decide to participate.

Digital Insights Second Annual Online Financial Management Survey

The Digital Insight Second Annual Online Financial Management Survey was fielded by Decipher research in July-August 2009. The small business portion surveyed 500 small business owners across the United States. There’s good news in this survey for the banking industry. Nearly 70% of respondents (both consumer and small business) indicated confidence in the stability of their bank or credit union. Other highlights include:

• Sixty-one percent of small business owners are expressing optimism about their potential businesses growth.
• Seventeen percent of small business owners have increased their use of online financial management tools in the past year.

American Express OPEN® Small Business Monitor

More than half (55%) of entrepreneurs have an optimistic outlook on near-term business prospects, up from 45% in March 2009, according to the American Express OPEN® Small Business Monitor, a semi-annual survey of business owners. Key highlights of this report indicate small business are taking a conservative approach.

• Forty one percent say their top priority over the next six months is maintaining current sources of revenue with only one quarter (26%) focused on growing their business, which is the lowest number for growth in Monitor history.
• Half (49%) say they are not willing to take on financial risk to grow their business, an all-time high for the Monitor.
• Maintaining morale is a big issue. Three-quarters say morale has stayed the same, and nine percent say it has improved. In addition, approximately one in three (28%) business owners see offering financial incentives such as bonuses and paid time off as a way to increase employee morale.
• Sixty percent of entrepreneurs report cash flow issues this fall, a slight uptick over the previous fall (55%) and this spring (57%).
• The biggest cash flow worry for business owners is the ability to pay bills on time (26%).
• When cash flow concerns arise, business owners are most likely to dip into their own pockets: 32% of business owners will use personal or private funds, and one in four (25%) will put off purchases. Others will use credit or charge cards (13%), obtain and use a line of credit (12%), lease rather than purchase business equipment (4%), or get a short-term loan in order to improve cash flow (3%).

What It All Means for Your Small Business

Your situation may be entirely different than any of the companies surveyed, but the general consensus is that the economy is slightly better. Does that mean credit will loosen up and bank loans will be easier to come by? Not likely. You’ll have to continue to keep a sharp eye on expenses and pay close attention to collecting your receivables to stay afloat. Even in a flush economy that’s how small business should operate to stay on the positive side of cash flow. Today’s economy just makes the challenge a bit tougher. But I know you can do it.

Editor’s note: this article was originally published at the American Express OPEN Forum, and is republished here with permission.

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About the Author: Denise O’Berry is a small business expert who provides tools, tips and advice to help small business owners be successful. O’Berry is the author of “Small Business Cash Flow: Strategies for Making Your Business a Financial Success.” Her blog can be found at Just for Small Business.

The post Is the Economy Really Improving for Small Business? You Decide appeared first on Small Business Trends.

• Only 19 percent of owners say they plan to increase spending on business development over the next six months, the lowest number for this category in the Watch’s 30-month history. Forty-six percent say they plan to reduce spending on business development and 30 percent are not making any changes.

What a big mistake those 46% who are reducing their spending are making. Business development is what drives small business sales and ultimately adds to the bottom line. The 19% who are increasing spending and those who are not making changes truly understand how important business development is to their business survival.

• The number of owners who say they have experienced temporary cash flow issues in the past 90 days decreased in January to 38 percent from 42 percent in December.

This is very good news. That means these small business owners have likely found a creative way to get their cash flow issues in line so they can keep their head above water.

What I also find encouraging is that 53% of owners said they will not have to raise funds to stay in business, while 32% said they will need extra money and 15% weren’t sure. And it’s a good thing that’s the case because the banks just are not letting loose of those purse strings just yet. I think we’ll be waiting a few more months before bank funds are available again.

Interestingly, of those who indicated they would need extra money, only 18% would seek a bank loan. Most will look to friends and family (20%) and some will tap into their personal savings (19%). I’m also glad to see that only 9% will use credit cards for financing. In tight cash flow situations, credit cards are a quick road to nowhere.

What do you think of these results? Are they in line with your thinking? Let’s talk about it.

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About the Author: Denise O’Berry is a small business expert who provides tools, tips and advice to help small business owners be successful. O’Berry is the author of “Small Business Cash Flow: Strategies for Making Your Business a Financial Success.” Her blog can be found at Just for Small Business.

The post Small Business Confidence In Economy Dips Again appeared first on Small Business Trends.

Overall, the landscape is different than it has been for a long time, but small business owners are used to adapting to diverse issues and have remained the economic engine of the U.S. for a long, long time.

I expect that force to remain constant during 2009 as small business owners get more creative to help their companies survive and thrive. One thing’s for sure. Small business focus will be where it always should have been – on cash flow. Here’s what I think small business owners will be doing in 2009 to keep their cash flow going in the right direction.

1. Wise business owners find opportunity in chaos – While everyone else is focused on what they can’t do, small business owners will focus on what they can do. That means they’ll look for new niches to focus on and new ways to market to reach those in their current target area. They’ll assess the business landscape and create businesses to solve business problems that no one has even thought of before.
2. Cloud computing becomes mainstream and offers cost-effectiveness – A big cost for any business is upgrading to current versions of software to stay competitive. Technology has made so many advances in the last few years, much of that replacement cost is no longer necessary.  Small business owners will turn to online solutions, like QuickBooks or FreshBooks to manage their finances. Each of these services offers a chance to try the software for free to help small business owners determine the right solution for their business.
3. New financing opportunities appear – Over the last few years, peer-to-peer lending platforms have entered the marketplace offering financing options. With these financing platforms, people register as lenders and set the minimum interest rate they are willing to earn. When someone applies for a loan, the lending network typically secures the loan and then sells promissory notes to the lender. These networks have come under recent scrutiny by the SEC which claims these notes are investments which must be regulated. Given recent economic events, the intervention by the SEC is a good step in the right direction to protect both borrowers and lenders. If the peer-to-peer lending companies can get through the regulatory requirements, growth in this loan area will definitely rise during 2009.
4. Small businesses will opt for contractor vs employee – Hoping to remain lean and mean to keep their bottom line stable, small businesses will tap heavily into the freelance contractor arena for business assistance. And more businesses will look to virtual assistants (VA) for help. VAs can be found in any specialty area to help small business owners achieve business success. Since the cost of having employees on staff takes a big chunk out of the bottom line for any business — as much as sixty percent — small business owners will take a closer look at whether to hire full time or use the wealth of temporary talent in the marketplace. This assessment will be based on short term business needs and long range goals of the company. The best bet for determining the right strategy is to perform a cost / benefit analysis and to ensure the hire passes the IRS Independent Contractor test.
5. Bartering as a cash outflow buffer picks up – Most barter arrangements take place on a one-to-one basis between two companies, one with a need and the other with the solution. According to wikipedia, it is estimated that over 500,000 businesses in the U.S. are involved in a barter exchange activities and that approximately 500 commercial and corporate barter companies serve all parts of the world. Memberships will be on the rise for two barter industry groups, the National Association of Trade Exchanges (NATE) and the International Reciprocal Trade Association (IRTA) as more small business owners seek barter opportunities. As reported in BusinessWeek.com NATE has already seen a 10% to 12% increase in new members and recently reported that 400 barter exchanges in the U.S. and Canada generated transactions worth $4 billion a year.
6. SBA becomes an important small business partner … again – During the Clinton administration, the SBA administrator was part of the president’s cabinet which hasn’t been the case under the Bush administration. President Elect Obama has completed his cabinet selections which include an appointment for the Small Business Administration. Obama was co-sponsor on Senate Bill S2.1256: Small Business Lending Reauthorization and Improvements Act of 2007 which is still pending vote in both the House and the Senate. This bill will move quickly through the process and onto the President’s desk for signing when the new administration is in power. Once in place, capital for small business loans should be easier to obtain. Pick up your copy of his plan for small business now (PDF) to read all the details.
7. Social media is the new way to get out of a cash flow crunch – If you haven’t heard of Twitter or any of the other social media tools available, you must be living in a cave. Social media is about having a conversation with business partners, customers and prospects. It’s inexpensive or free. For the most urgent cash flow issues, some small businesses will reach out to their network for help. A good example of this happened just recently when Remarkablogger – Michael Martine reached out to his social network for help after a major car accident and they came to his rescue. Without this assistance, his business may have struggled to survive.
8. Credit cards continue to be a top financing source – According to the 2008 National Small Business Association (NSBA) survey of small business owners, 44% use credit cards to finance their business operations. With bank loans getting harder to secure, the number of small business owners using credit cards will rise. But the credit won’t be cheap. Credit card companies have been reducing credit lines and raising interest rates over the last few months. That means small business owners need to keep a sharp eye on their available credit by reading change in terms notices that arrive with credit card statements and take defensive action by shopping around to find the best card available. Help is on the way from the government, but not until July 1, 2010. The Federal Reserve Board approved regulations this month that will stop arbitrary increases in interest rates and eliminate two cycle billing. This is good and bad news for small business owners who may have to deal with increased tightening of business credit over the next year as a result of the pending action.
9. Collecting receivables gets increased attention – Small businesses aren’t the best at collecting the money they are owed according to a recent “Getting Paid Survey” by Intuit. Not collecting on overdue debts has amounted to a $42 million dollar loss for 22 million small businesses in the US. That’s a lot of money to lose. An increased focus will be placed on getting invoices out the door quickly once work has been completed and follow up on overdue invoices will begin sooner to ensure they get the cash they deserve.
10. A better focus on personal finance integrity - It’s no secret that small business owners with bad credit have a tougher time securing funding for their businesses.  To increase the possibility of their business obtaining credit for business growth or sustainability, business owners will focus on making sure their personal finances are in good shape by taking steps to improve their FICO score and using free software solutions like Mint.

So there you have it. Ten trends we’ll see in action during 2009. I’m optimistic because no matter what the external drivers have been, small business has always survived. The year 2009 will be no different.

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About the Author: Denise O’Berry is a small business expert who provides tools, tips and advice to help small business owners be successful. O’Berry is the author of “Small Business Cash Flow: Strategies for Making Your Business a Financial Success.” Her business blog can be found at Just for Small Business.

The post Top 10 Trends In Managing Small Business Finances appeared first on Small Business Trends.

Now is the time to take action. You simply cannot continue to do things the same way and expect different results, especially in this down economy. You will not survive.

Your primary focus, if your business is living on the edge between a red or black bottom line, should be cash flow. And to increase cash flow you have to sell. Anything that takes you away from selling is a threat to your cash flow. 

That’s why when I read the recent Intuit “Get Paid” survey results, I just shook my head. The survey was conducted in early October 2008 and included responses from 751 small business owners with less than 10 employees.

According to the results, 66 percent of small businesses still handwrite invoices, use word processing programs and spreadsheets, or simply don’t have a standardized method. 

Are you one of those businesses? It’s time for a change. You can sign up for online invoicing tools that will cost you about 10 bucks a month. Or you can use the free Billing Manager version provided by Intuit. Your time is worth more than 10 bucks a month. And if you’re spending your time manually invoicing, you’re not selling so you suffer a double whammy — you’re costing your business money and you’re not available to make a sale.

And here’s the case for outsourcing to an expert. Nearly 20 percent of small business owners admit to forgetting to invoice or follow up on an overdue invoice. Over 50 percent of these respondents admit that they are simply “not organized” and “lack an automated system for creating and tracking invoices.”

Ack! Find someone to take care of this for you now. Would you want to tell a bankruptcy judge you just were “not organized” and that’s why your business failed? How embarrassing would that be? You can find a reasonably priced virtual assistant who can handle this for you. That way you don’t have to worry about being disorganized and you can spend all of your time focusing on pumping up your bottom line by selling your heart out.

You can do your business a whole lot of good — and increase those sales too — simply by accepting credit cards. According to the survey, only 30 percent of small businesses accept credit cards and only 22 percent accept electronic checks. The most common forms of payment are standard checks with 85 percent followed by cash with 59 percent. People don’t carry much cash these days and plenty of them couldn’t find a check if they tried. And 20 percent of small businesses admit to having lost a customer because they could not accept credit cards. Don’t let that be your business.

If you’re serious about making the most of your cash flow, take a hard look at the things you are doing in your business. I bet you find at least one thing you can change by automating or outsourcing. Why not do that now and let me know what you found by leaving a comment. Or if you have a tip to offer, tell me about that too.

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About the Author: Denise O’Berry is a small business expert who provides tools, tips and advice to help small business owners be successful. O’Berry is the author of “Small Business Cash Flow: Strategies for Making Your Business a Financial Success” and Founder of the Minding Your Own Business online network. Her blog can be found at Just for Small Business.

The post To Survive This Economy You Must Automate Your Small Business appeared first on Small Business Trends.

You must have a cash flow strategy for your business if you plan on staying in business.

Here are some tactics to help you keep your bottom line in the black.

• If you bill for work after it’s been completed, don’t be an invoice laggard. Get that invoice out the door as soon as the work is completed. No need to wait thirty days to bill. Do it now and you’ll have your payment in hand sooner.
• Get a merchant account or set your business up with PayPal so you can accept credit cards. This will cost you a few bucks, but you’ll have your money in days rather than weeks. Then all you’ll have to say to your customers is, “May I put that on your credit card?”
• Consider setting up your billing on an incremental basis. There are no rules that say you must do the work and then get paid. When you negotiate a contract, set it up so you receive a portion of the payment when you begin, another portion when you are half done and the rest when the project is complete. Setting payment milestones will go a long way in keeping the cash flowing.
• Package your products or services to deliver on a regular basis and take advantage of recurring billing. You could set up a product or service of the month club or an exclusive membership that your customers can subscribe to and pay you every single month.
• Partner up with a complementary business and have them sell your products or services as a value-added benefit. The two of you can brainstorm to find where you can get the most bang for your buck and then split the proceeds.
• Stay on top of outstanding invoices. Everyone wants to save money. Offer a small discount — two to five percent — to your customers for paying within fifteen days rather than waiting the usual thirty. Monitor and act quickly on any invoices that cross the thirty day threshold with no payment.
• Study your sales patterns. What are you selling that’s selling the best right now? Use the 80 / 20 rule to focus your efforts in the high sales area to increase your client base and create more cash for your company.

Whatever approach you take, remember one thing. Cash is king (queen and ace too!) in your business. You cannot survive without cash flow. And never forget that hope is not a strategy. Hoping for better cash flow won’t help you make progress. Taking action will — especially in these trying economic times.

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About the Author: Denise O’Berry is a small business expert who provides tools, tips and advice to help small business owners be successful. O’Berry is the author of “Small Business Cash Flow: Strategies for Making Your Business a Financial Success” and Founder of the Minding Your Own Business online network. Her blog can be found at Just for Small Business.

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