Conference Presentation, Panel
Effectively Managing Your Small Business’s Cash Flow
Bank of AmericaCarol Roth, Will Barr, Max Eliscu, Rieva Lesonsky, Steve Strauss, Cheryl Roth, Max Elliske, Riva Lassonski
- Cash flow projections for the near future are expected to mirror the recent past, with accuracy in three-month forecasts achievable by analyzing the preceding three months of income and expenses.
- Unpaid customer invoices and unexpected financial disruptions are anticipated events requiring small business owners to establish rainy day funds covering six months of operating expenses.
- Small businesses are expected to secure lines of credit, factoring arrangements, and invoice financing options proactively, along with maintaining credit cards with available balances, before financial stress arises.
- Engaging with bankers, accountants, CPAs, and bookkeepers is expected to improve payment consistency, optimize cash flow management, and provide ongoing financial expertise beyond simple loan acquisition.
- Bank of America has deployed 1,200 small business specialists over the last two years and plans to continue strategies focused on assisting owners with cash flow challenges.
- Owners are advised to create multiple revenue streams and negotiate faster customer payments than bill payments, a strategy expected to generate positive cash flow even for growing businesses that are not yet profitable.
- A disciplined focus on a defined cash flow process and preparedness for deviations from the plan are recommended to reduce stress and increase the likelihood of successful financial management.
- Financial relationships and preventative maintenance are expected to be addressed when resources are available rather than during crises, ensuring readiness when disasters or surprises inevitably strike entrepreneurs.