Sign In  |  Register  |  About Livermore  |  Contact Us

Livermore, CA
September 01, 2020 1:25pm
7-Day Forecast | Traffic
  • Search Hotels in Livermore

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

How Small Businesses Can Manage Cashflow to Thrive in 2023

photo

SPONSORED CONTENT -- (StatePoint) Intelligent cashflow management is the essential fuel of startups and digital businesses, particularly in a challenging economy. According to experts, it can mean the difference between surviving, thriving and failure.

“Poor cashflow management will kill your business. In fact, it’s killed some of the biggest businesses in the world. No matter how fast you’re growing, you could be destined for the startup graveyard if your outgoings exceed your revenues,” says Dominic Wells, serial entrepreneur and CEO and founder of Onfolio Holdings, a leading online conglomerate that acquires and manages a diversified portfolio of online business holdings.

To help startups and digital businesses not only survive a downturn, but remain profitable while accelerating growth, Wells is sharing some top actionable insights for the current moment:

1. Know that capital is harder to secure. While during periods of low interest rates, it was possible to burn through capital, that’s no longer the case. “Don’t assume you can just raise more money. Investors are avoiding businesses that aren’t already cashflow positive,” says Wells.

2. Change your priorities. Founders must review spending line items and identify the areas generating the greatest returns. Double down on those. Cut or reduce your spending elsewhere.

3. Focus on short-term growth. Certainty beats speculation right now and investors are choosing businesses that will generate near-term certainty with monthly recurring revenue over those with potential long-term growth.

4. Make profitability your number one goal. Aim to be profitable enough to pay yourself a decent salary, cover business overheads and keep cash in reserve. If you’re looking for a buyer or investor, have solid numbers to show them. In Onfolio’s case, the investment criteria are established businesses generating annual profits over $500,000 in sectors and niches with high-growth potential. Without the metrics to support why you deserve funding, investors and buyers aren’t lurking around the next corner, ready to leap out with a check.

“It’s not easy to execute, but your goal is simple. Keep asking yourself, ‘are we profitable?’ If the answer is no, do everything you can to get there quickly,” says Wells.

5. Become more financially secure. At a time when many operations are cutting costs, making your service indispensable to customers so that they stay with you, or even spend more money, can help make you more financially secure. It’s time to deploy strategies and technology that generate more revenue from your current customers. For example, if you’re a website owner without a subscription upsell, now is the time to implement one.

For more tips and insights and to learn more about digital company acquisition, visit onfolio.com.

“New challenges arise for small business owners and digital companies during downturns,” says Wells. “Being savvy about the current climate can mean not just your survival, but your continued success.”

Photo Credit: (c) ArLawKa AungTun / iStock via Getty Images Plus

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Livermore.com & California Media Partners, LLC. All rights reserved.