For many small businesses, maintaining healthy finances is a careful balancing act between revenue, expenses, and liabilities. There are a few key guidelines small businesses can use to keep healthy finances and achieve successful growth.
Avoid Unnecessary Debt
Small businesses need capital for everything from overhead to payroll, and the cost of production for client orders. Using loans and other debt-based financing programs as an answer to smooth out financial turbulence is a slippery slope. Loans place debt on the balance sheet, lower business credit ratings, and place a further strain on finances. Yes, loans can temporarily provide a “fix,” but businesses have to set aside a portion of their revenue to make payments on the balance owed, which can create even larger cash flow issues.
Stay on Top of Liabilities
Small businesses need to pay their quarte