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Category Archives: Cash Flow Management

How to Save a Retail Store That’s Losing Money Every Month

By | Business By The Book, Business Improvements, Cash Flow Management, Increasing Profitability, Organization & Strategy | No Comments
Avoiding Business FailureQ: I launched a retail store about nine months ago, but I need immediate help. My business is losing several thousand dollars per month and I am not even drawing any salary for me or my family. My revenue has flattened out due to the economy and is around $40,000 per month, but my expenses are running around $46,000. I have an SBA loan payment of $6,600 per month and a building lease of $3,300 per month. I" />

Q: I launched a retail store about nine months ago, but I need immediate help. My business is losing several thousand dollars per month and I am not even drawing any salary for me or my family. My revenue has flattened out due to the economy and is around $40,000 per month, but my expenses are running around $46,000. I have an SBA loan payment of $6,600 per month and a building lease of $3,300 per month. I’m thinking about trying to refinance my SBA loan to get a lower payment. Any suggestions? A: The first thing I would suggest…

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Aspiring Entrepreneurs: Change Your Lifestyle Prior to Launch

By | Business By The Book, Cash Flow Management, Financing a Startup, Ownership & Purpose, Self Evaluation, Starting Up | No Comments
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If you are serious about starting or buying your own business, one of the very first things to do is change your lifestyle. Anytime God calls us to obedience, it is often accompanied by a drastic change in direction. Becoming an entrepreneur is no different. If you have the typical lifestyle of credit card payments, car payments, and a house payment, it will be nearly impossible for you to start/buy a business and get it ramped up to the same level of income you need in short order. The question we should ask ourselves at this stage is not “how…

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How to Improve the Profitability of a Conference

By | Accounting, Business By The Book, Business Improvements, Cash Flow Management, Finance, Financial Reporting, Increasing Profitability, Organization & Strategy | No Comments

Q: My family has planned and managed a Christian family conference each year now for several years, but we end up losing quite a bit of money on each conference. We really feel it is of the Lord and that the conference is a blessing to many families, but it has turned into a painful financial experience for us. Do you have any advice you could offer us? A: There are two ways to improve the situation: to increase revenue and/or reduce expenses with the goal of never spending more than you are bringing in. Here are some specific suggestions…

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He Was About To Fail, But Didn’t Realize It

By | Business By The Book, Cash Flow Management, Compensation Management, HR Management, Leadership, Leadership and Employees, Ownership & Purpose | No Comments

“The fence guys are here!” I exclaimed to my wife incredulously one March morning. They had shown up two days in a row and the surprise was clearly in my voice. The “fence guys” had been a frequent topic of conversation on our hobby farm over the previous several months. The “fence guys” were the fencing contractors that were building the white plank fence around our horse pasture and our farmstead. Believe it or not, this had all started nine months earlier when I selected this contractor over two others after receiving their proposals. The owner of the company was…

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Why Do I Keep Losing Money in My Business?

By | Basic Accounting, Business By The Book, Cash Flow Management, Finance, Financial Reporting | No Comments

Q: I have a small owner/operator business where I offer five different services to my customer base: retail, rental, repair, onsite service work and storage. It is very difficult to manage my business month-to-month because it seems like its feast or famine with more “famine” months than “feast” months. I also feel unfocused and I am not sure what I should do to improve the bottom line. All of this has led to a lot of difficulty in our personal finances and home life as we struggle with bills and have had to declare bankruptcy a few years ago. Now we…

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