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Interview Patty

5 Money Management Tips Women-Owned Businesses

Houston Growth for Women-Owned Businesses

1. - Don’t borrow what you don’t need. - Despite that 71 percent of small-business owners

in a Bank of America study reported having sufficient access to lines of credit, 45 percent of respondents said lack of cash flow was a top business concern. Though many non-traditional small-business lenders now provide easy access to short-term capital, such borrowing may cost your business more than you might realize. Manage your cash flow proactively with billing processes and payment systems that expedite accounts receivables and inherently support consistent cash flow.

2. - Set the tone for payment expectations. - Communicating formalized expectations for your billing policies will help you establish a cadence for your business’ accounts payable, accounts receivable and collections processes. Provide your clients with written documentation detailing when and how invoices are issued, when payment is due and which forms of payment your business accepts. If you extend an early payment discount, or impose late fees, explicitly state the implications of both.

3. - Make invoicing cost effective. - Aside from being a less expensive alternative to paper invoices (which cost you in the form of paper, printing supplies, postage and time), electronic invoices delivered via email empower you to track the “life cycle” of each client’s billing experience, including whether a client received your email and opened it.

4. - Analyze where to invest your time. - Analyze what you would pay a third party if you outsourced each specific task. Identify what’s truly providing cost efficiency, and what’s robbing you of the opportunity to invest your time and energy into more valuable businesses functions. When you do outsource, make sure the work fits the resource to ensure maximum return on investment.

5. -Don’t forget about taxes. - Taxes take on a whole new meaning when you own a business. Simplify the process by calculating what you will owe each tax entity (including the Federal and state governments, and perhaps, your local city taxes) at the first of the year, for each quarter.

Establish a bank account dedicated solely to tax obligations; contribute the appropriate amount you need to save weekly, based on what you’ll owe each quarter. This basic process guarantees that you have enough money to fulfill your tax payments on time, and allows you to see how much liquid cash you really have on hand at any given time, less your taxes owed.

Source: business2community

Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.

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Houston Growth for women-owned businesses.

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