Small Business Boomers

As Basisc as It Gets - Financial Survival

by jim on March 17th, 2008

Finance is survival.  Bear Stearns sold for $2 last night.  Eighteen months ago they were selling for over $170.  The reasons they have lost out are wide and varied, but the final straw was that they did not have enough cash liquidity to answer the demands of their obligations.

These are times when risk and poor financial management will do you and your business in.  Now is the time to do the basics right.  Cut costs.  Collect what is owed you quickly.  Get after notorious slow payers immediately.  Pay what you owe slowly.  Meet all you financial obligations to the letter.  Don’t give any of your lenders a reason to call their loans early.  Stay in close contact with your investors and lenders.  Do it weekly.  Last and by no means least, get and keep your personal finances in good shape.  If you personally garunteeded  a business loan and your credit score goes south the loan could be called.

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POSTED IN: Finance