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These days, great value is found in the innovative and the new. Because of this, smaller and newer businesses have many outstanding web-based tools and opportunities to receive funding in order to succeed. And, as we all know, cash flow is key to establishing solid ground under your business’ feet. Thankfully, the rising interest in investing in small businesses provides a way for them to improve their cash flow position, due to the funding that these interested parties provide. 

And while acquiring loans from a bank is the most traditional way for small businesses to receive funding, banks are ever wary of helping out businesses unless a sizable collateral is involved. So, here is a list of six alternative funding sources that won’t shy away from giving your business the boost it needs to your improve cash flow position and set you onto the path to success.

1. Crowdfunding
   The internet these days is a force to be reckoned with. You probably already use it to keep your business’ name on the minds of the public through social media, or at the very least you use its resources to aid your team in its work. Why not use it for funding? Billions of cumulative dollars have been acquired in past years thanks to the small investments of the many contributors found on Crowdfunding platforms such as GoFundMe, IndieGoGo  and KickStarter looking for the benefits that they can receive in helping your business grow. These organizations collect a percentage of the funding that you receive, so, in this case, interest rates and collateral are out of the picture. With these platforms, your business can amass a large following of contributors that invest small amounts of money to your business and its cause. 
2. SBA loans
   If you’re willing to do the paperwork, an SBA loan can be a valuable resource to give your small business the boost that it needs. SBA loans were created by the government to aid small businesses in America since they are what fuels America’s economy. There are four different loans that a business can apply for: 7(a) Loans, Microloans, CDC/504 Loans, Disaster Loans, CAPLoans, and Export Loans. Since these are loans, there will be interest that is involved, but many businesses find the benefits, which range from money to land to inventory, worth the paperwork. 
3. Small business grant programs
   Organizations are rushing to give aid to any promising new businesses that appear on the market. There are countless grants that give a platform to businesses that are technology based, innovative, run by women or minorities, etc. And if you don’t fall under these categories, there are still countless grants that can be obtained for every type of small business out there if you meet the criteria. And just like crowdfunding, there are no interest rates involved, which is good news if you’re looking to improve your cash flow position. 
4. Economic-development organization in local area
   Another invaluable funding resource is an economic-development organization in your business’ local area. The main objective of these organizations is inclusive growth, and because of this, these organizations are perfect for putting your small business on an even playing field with your competitors. Many of these establishments are non-profit, and since they truly wish for small businesses in their own community to succeed, you can be sure that they will be more than happy to come to your aid.   
5. Networking to find investors
   This one may seem complicated, but it might just be the most important funding source on this post. Attend conferences with like-minded individuals and get your business’ name out there for the investor attendees. This face-to-face version of networking will never be outdated, thanks to the value that is found in in-person interactions. Still, there are other ways to find investors through networking. Make use of the many social media platforms that today’s world has to offer, and form connections with well-established investors online. Linkedin is especially useful in this field, and using Twitter, Facebook, and other platforms is also invaluable in your search for investors. 
6. Equity financing
   Equity financing works for already-established companies that have already acquired stock. In order to increase capital, businesses that implement equity financing by selling stock to interested investors looking for shares. This method of acquiring funds is best for businesses who are interested in increasing cash flow and wish to grow further after their business has its footing secured. Whether you’re there yet, this is a good funding source to have in your pocket.

Who are we? We’re FuelGauge. 

We’re small business owners that have used these very methods to improve our own cash flow position. The team at FuelGauge knows how hard small business owners work to keep themselves afloat. We know that struggle, too, as a small, but mighty, band of enthusiastic small business promoters who work diligently to make business owners’ lives easier. 

Fuel Gauge is a simple, accessible, cloud-based cash forecasting software created BY a small business owner FOR small business owners. Our affordable business planning tools and amazing customer support will help you tame the chaos of projects starting, stopping and starting again. Get a FREE 45-day trial today. No need to provide a credit card number. And if FuelGauge doesn’t live up to your needs, you can simply walk away. With FuelGauge, you will have 24/7 access to your past, present and future avenues at your fingertips.

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Fact: According to the Small Business Administration, half of all new businesses in the US fail within the first five years.

That’s a sobering statistic. But the great news is that half of all new businesses in the US survive and thrive within the first five years. How do you make sure your small business falls into the latter category? You do so by creating a cash flow budget, practicing good cash flow management and engaging in financial forecasting. You need to take the time to analyze and understand your revenue and expenses, and do your research to ensure you have a thorough and complete picture of your business’ expenses. 

Whether you’ve been in business for two months or two years, positive cash flow is crucial to keeping your small business afloat. The best way to keep positive cash flow is to be prepared for expenses that might arise that are outside of your budget or plan. In other words, expect the unexpected. Be proactive. Build a cushion into your operating capital budget so you’ll be prepared when these types of expenses crop up. Then you can focus on running and growing your business. 

Every small business owner should consider these six unexpected expenses: 

1. Insurance. Depending on the nature of your business, there are several types of insurance you’ll need. Liability insurance is a minimum, whether it’s general liability, product liability or professional liability. If you have a brick and mortar operation, you’ll also need commercial property insurance. If you have employees, you’ll need workers’ compensation insurance. You might also consider business income insurance, which helps protect your income if you experience a business interruption, such as fire or theft. And as the value of your business grows, you will need to continue to increase your coverage to keep pace with it. 
2. Utilities. As you were creating your operating budget, you considered the cost of renting or buying your business’ facility. However, many business owners underestimate the costs of everything else that goes along with a brick and mortar space: electricity, heat and air conditioning, phone, internet service, water and trash removal. Do your research on what each of these items will truly cost if they apply to your business (or might in the future) and account for them in your operating budget. 
3. Taxes. Consider federal, state and municipal taxes as you’re building your operating budget. In addition to employment and income taxes, you’ll be responsible for property taxes on both real estate and other business property, such as equipment and furnishings. And, just as is true with insurance, as your business grows, your tax liability will increase. Be sure you’re adjusting this expense down the line. 
4. Emergency repairs. Equipment breaks down. Employees break things. You need to be able to repair or replace crucial items in a timely manner without disrupting the operations of your business (or being in a position where you need to “borrow” money from another area of the business to keep things up and running). 
5. Professional fees. You’re an expert in your field, and you will most likely need the consultative services of others who are experts in their fields to guide you. Unless you’re an accountant or a lawyer, you need to build the projected expenses for both into your operating budget. While you might not need an attorney on retainer, you should ensure that your business structure is sound and your employee and client agreements adequately protect you. 
6. Marketing. You can’t assume that, if you build it, they will come. You can have the most revolutionary or extraordinary product or service on the market, but without brand awareness, sales will likely be slow. Consult with a marketing professional to determine a marketing budget that will move the needle for your sales, and build that amount into your monthly expenses. 

Get a handle on it 

Owning a small business can be rewarding and fun. It can also be overwhelming and stressful. The best way to minimize your stress is to have a solid handle on your business’ financial picture. Continue to tweak your operating budget to include potential expenses, and expect the unexpected. Find a financial forecasting tool that has the features you need to get a clearer picture of where you’re heading. 

And then go for it. 

About FuelGauge

FuelGauge is a simple, easy-to-use, cloud-based cash forecasting software created BY a small business owner, FOR small business owners. FuelGauge is an affordable business planning tool with nimble drag-and-drop functionality and straight-up awesome customer support that helps you tame the chaos of projects starting, stopping and starting again, as projects often do.

If you’re ready for a new way to gauge your business, plan with confidence and achieve the goals you’ve set for your small business, get the power of FuelGauge today, with a FREE 45-day trial. You don’t even have to provide a credit card number. If, after 45 days, FuelGauge hasn’t rocked your world, you can simply walk away. With FuelGauge, you’ll have your past, present and future revenues and expenses at your fingertips, anytime of the day or night.

The post Six Unexpected Expenses Some Start-Up Business Owners Fail to Anticipate appeared first on FuelGauge.

Learn five ways you can create a positive cash flow position for your small business.

What Is Cash Flow? 

In order to fully understand what cash flow is, first understand what it’s not. While all are important to your business, cash flow projections, financial forecasting, profit and loss statements, and bank account balances all tell you different things about your small business. Understanding your cash flow and creating a cash flow budget will give you the truest snapshot at any moment in time of the overall financial health of your business.

Cash flow is simply the amount of money moving in and out of your business every month. 

Cash flow is determined by assessing your accounts payable and accounts receivable, along with your fixed and variable expenses and anticipated sales and revenue. So, while you might be showing a profit on your P&L, if you don’t have positive cash flow, you still might struggle to make payroll or meet other obligations.

Here are five ways you can ensure your business has good cash flow: 

1. Get a business line of credit. Operating capital is the lifeblood of your small business. A small business line of credit allows you the flexibility to borrow only what you need, when you need it (as opposed to a small business loan, in which you receive the full amount up front). This means you’ll only be paying interest on the money you use, which can save you thousands of dollars in interest over time.
2. Consider leasing, not buying, equipment. Because capital is king, it’s prudent to hang on to as much as you can, whether you’re in your start-up phase or looking to expand or scale your business. In many cases, leasing equipment is a smart idea, as you’ll not only need to outlay much less cash upfront, but repairs on and updates to your equipment will likely be covered under your lease.
3. Create a rainy day fund. Yes, you should be reinvesting revenue in your business, and you need to pay yourself and your employees a living wage. However, you should also be disciplined enough to set aside a regular amount of money every month, and leave those funds alone. As your business experiences the usual ups and downs, there will be lots of days when you’ll find yourself thinking, “Ok, that rainy day is here.” But be sure to consider all your other options before you touch those funds.
4. Create a cash flow budget. Unless you’ve charted a course for where you’re heading, you’ll never know if you’ve arrived. Take stock of what your cash flow needs are over a 6-12 month period, considering any seasonal impacts on your business and what your accounts receivable terms are. Once you’ve created your cash flow budget, decide what steps you need to take to adhere to it on an ongoing basis.
5. Use a cash flow management tool. As a small business owner, you have plenty of irons in the fire. Keeping on top of your cash flow can be a slippery slope. Don’t try to reinvent the wheel or get bogged down in the land of spreadsheets. Look for a cash flow management tool that makes it easy to update projects’ statuses and gives you a broad overview of what’s coming in and going out at any point in time.

As a small business owner, you have plenty of things to keep you up at night– worrying about marketing, product development, staffing, customer relations and a million other things that never occurred to you to worry about before you started your business. While managing your cash flow is essential, it won’t get between you and your sanity if you follow this advice.

About FuelGauge

FuelGauge is a simple, easy-to-use, cloud-based cash forecasting software created BY a small business owner, FOR small business owners. FuelGauge is an affordable business planning tool with nimble drag-and-drop functionality and straight-up awesome customer support that helps you tame the chaos of projects starting, stopping and starting again, as projects often do.

If you’re ready for a new way to gauge your business, plan with confidence and achieve the goals you’ve set for your small business, get the power of FuelGauge today, with a FREE 45-day trial. You don’t even have to provide a credit card number. If, after 45 days, FuelGauge hasn’t rocked your world, you can simply walk away. With FuelGauge, you’ll have your past, present and future revenues and expenses at your fingertips, anytime of the day or night.

The post Five Ways You Can Ensure Your Small Business Has Good Cash Flow appeared first on FuelGauge.

It’s easier than you might think. Here are the five key elements to get it done.

Cash flow is the lifeblood of your business. And not knowing what your future cash flow can keep you up at night. Financial forecasting and creating a budget for your cash flow can be one path to getting a good night’s sleep. Having a cash flow budget allows you to plan for both long-term and short-term expenses and to make sure you have the financial resources available to meet your current obligations while you’re growing your business.

Whether you own a law firm, marketing agency, architectural or graphic design firm, construction business, handyman service or photography business—no matter what your small business does—every penny counts.

So, here are five key elements to creating a cash flow budget for your small business.

1. Get your ducks in a row. The first step to creating a cash flow budget is organizing your business’ financial reports. You need up-to-date income and expense information from your profit and loss statement. You don’t need your balance sheet—the cash flow budget is strictly about dollars in and dollars out.
2. Project your collections. What accounts receivable do you expect to come in for the period of time you’re creating your cash flow budget? Be realistic. If your terms are Net 30, but you have several customers that tend to pay within 60 days or more, don’t count your proverbial chickens too soon.
3. Project any additional anticipated cash flow. Do you have new projects or clients coming on board that will result in deposits paid up-front? Are there any other sources of incoming funds?
4. Add up what’s going out. If you have a history, take a look at both your fixed and variable expenses from the previous period you’re creating your cash flow budget for. Don’t include any expenses that aren’t set in stone, such as a piece of equipment you’re considering purchasing. You’re only looking to get a handle on what your actual expenses will be. Don’t forget to include any accounts payable that will be coming up in the months you’re including in your budget.
5. Do the math. Once you have these numbers popped out, a picture of your cash flow budget will emerge. Hopefully, it’s a positive picture. If it’s not, don’t panic. At least you know what you’re up against and you can adjust your strategy. How much do you need to reduce your expenses or increase your sales to get a positive number? Sharpen your pencil, and figure it out.

Look to the future

Now that you have examined your situation, it’s time to look to the future. What may be on the horizon for your business?

• Do you plan/need to bring on new employees in the coming period? What will that do to your payroll expense?
• Is your business seasonal? How will the season you’re heading into impact your cash flow position?
• How much growth do you anticipate in the next period, and how will that affect your monthly/quarterly/annual revenue and cash flow?
• Do you anticipate rent or general overhead expenses to increase (or decrease)?
• Will you be paying yourself or key partners/employees more? Can you afford to?

Depending on how new or established your business is, your cash flow budget may be more or less detailed and sophisticated. You might be tracking all this in a spreadsheet. You might be scribbling all this on a cocktail napkin. No judgement here. The most important thing is that you’re thinking about cash flow.

About FuelGauge

FuelGauge is a simple, easy-to-use, cloud-based cash forecasting software created BY a small business owner, FOR small business owners. FuelGauge is an affordable business planning tool with nimble drag-and-drop functionality and straight-up awesome customer support that helps you tame the chaos of projects starting, stopping and starting again, as projects often do.

If you’re ready for a new way to gauge your business, plan with confidence and achieve the goals you’ve set for your small business, get the power of FuelGauge today, with a FREE 45-day trial. You don’t even have to provide a credit card number. If, after 45 days, FuelGauge hasn’t rocked your world, you can simply walk away.

With FuelGauge, you’ll have your past, present and future revenues and expenses at your fingertips, anytime of the day or night.

The post Five Key Elements of Creating a Cash Flow Budget appeared first on FuelGauge.

Why is financial forecasting important to business decisions?

Financial forecasting is the only way to set goals, make plans, measure progress and ultimately, save your sanity as a small business owner.

Meet Steve.

Steve has been the creative director at a marketing agency for nine years. In 2018, he decided it was time to go out on his own. With the relationships he’d built over the years, he really felt like he could make it work. So he took a leap of faith. That leap turned out pretty well in year one. He billed about $120,000, mostly through referrals.

However, when January of 2019 rolled around, things got a little scary. He had several projects up in the air, some of them larger than he could handle alone. Depending on how the cards fell, he was either not going to have enough work, or he was going to be so buried, he’d need to hire people. Steve wasn’t sleeping well. The uncertainty was driving him bonkers. He started to wonder, “Did I make a mistake? Was I kidding myself that I could run a business?”

Does any of this sound familiar to YOU?

You started your small business because you’re really good at what you do, just as lots of other small business owners have done. Chefs become restaurant owners. Managers become consultants. Graphic designers decide they’ll freelance full-time. But just because you’re skilled at your trade doesn’t mean you have every aspect of running a business nailed. This is a whole new talk show. You need to understand how the pieces of your business’ puzzle fit together.

Solve the puzzle of your business with financial forecasting. It will help you:

1. Chart your course. Unless you’ve set measurable goals for your business, how will you know when you’re succeeding? Financial forecasting for your business helps you determine what’s feasible in terms of growth and scalability for your business and what you need to do to get there.
2. Team up. Staffing can be tricky, especially when your business is new or in a growth spurt. How will you handle staffing needs? Add to your payroll? Outsource? Beg your friends to help you? Taking the time to do a bit of forecasting will help you understand when, where and how you can add to your team to get the support you need.
3. Keep your mind on your money. Cash flow is a big concern for every business owner. Regardless of what your P&L is telling you, minding the actual dollars and cents in your checking account is key. Using a financial forecasting tool will help you get a handle on when those dollars should be showing up in your account and when they’re earmarked to roll back out again.
4. Expect the unexpected. Plan for the best, but prepare for the worst. That’s wise advice indeed. You need to consider how the weather, or the economy, or a technological advance by your competitors might affect your business, and have a Plan B (and a Plan C!) in your back pocket.
5. Keep calm and carry on. Some days, it might feel like your business is running you. Don’t beat yourself up. Every business owner feels that way at some point. The best way to bring order to the chaos is to have as much information at your fingertips as you can get. The more you know, the less you worry.

Steve chose FuelGauge.

Our friend Steve is learning that creativity is great when it comes to running a marketing agency, but maybe not so great for running a business. He needs solid numbers and a tool to get them quickly (and in an easily digestible format). FuelGauge is the perfect tool for small business owners to get a handle on their businesses and whip all those variables into shape to get a clear window into the future. It’s an affordable, web-based business planning solution that’s tailor-made for small business owners.

With FuelGauge, you can:

• Have 24/7, online access to your project capacity planning and sales.
• Set financial goals and measure your progress.
• Change a project’s status with drag-and-drop simplicity.
• Get insights into hiring needs and view the overall status of your current and future projects.
• Coordinate your financial forecasting and chart the future of your business.

Put the power of the ‘Gauge to work for your business today with a 45-day FREE trial. Get the tools you need to get a handle on your business, a picture of the future and a big ol’ chunk of peace of mind. You have nothing to lose and your sanity to gain.

Try FuelGauge today.

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