How Small Businesses Can Manage Cashflow to Thrive in 2023


(StatePoint) Intelligent cashflow management is the essential fuel of startups and digital businesses, particularly in a challenging economy. According to experts, it can mean the difference between surviving, thriving and failure.

“Poor cashflow management will kill your business. In fact, it’s killed some of the biggest businesses in the world. No matter how fast you’re growing, you could be destined for the startup graveyard if your outgoings exceed your revenues,” says Dominic Wells, serial entrepreneur and CEO and founder of Onfolio Holdings, a leading online conglomerate that acquires and manages a diversified portfolio of online business holdings.

To help startups and digital businesses not only survive a downturn, but remain profitable while accelerating growth, Wells is sharing some top actionable insights for the current moment:

1. Know that capital is harder to secure. While during periods of low interest rates, it was possible to burn through capital, that’s no longer the case. “Don’t assume you can just raise more money. Investors are avoiding businesses that aren’t already cashflow positive,” says Wells.

2. Change your priorities. Founders must review spending line items and identify the areas generating the greatest returns. Double down on those. Cut or reduce your spending elsewhere.

3. Focus on short-term growth. Certainty beats speculation right now and investors are choosing businesses that will generate near-term certainty with monthly recurring revenue over those with potential long-term growth.

4. Make profitability your number one goal. Aim to be profitable enough to pay yourself a decent salary, cover business overheads and keep cash in reserve. If you’re looking for a buyer or investor, have solid numbers to show them. In Onfolio’s case, the investment criteria are established businesses generating annual profits over $500,000 in sectors and niches with high-growth potential. Without the metrics to support why you deserve funding, investors and buyers aren’t lurking around the next corner, ready to leap out with a check.

“It’s not easy to execute, but your goal is simple. Keep asking yourself, ‘are we profitable?’ If the answer is no, do everything you can to get there quickly,” says Wells.

5. Become more financially secure. At a time when many operations are cutting costs, making your service indispensable to customers so that they stay with you, or even spend more money, can help make you more financially secure. It’s time to deploy strategies and technology that generate more revenue from your current customers. For example, if you’re a website owner without a subscription upsell, now is the time to implement one.

For more tips and insights and to learn more about digital company acquisition, visit onfolio.com.

“New challenges arise for small business owners and digital companies during downturns,” says Wells. “Being savvy about the current climate can mean not just your survival, but your continued success.”

PHOTO SOURCE: © ArLawKa AungTun / iStock via Getty Images Plus


More Resources

Covenants Not To Compete: Another Franchise Quandary
Imagine that you have operated a successful franchise business for the past several years. Your franchise agreement's term expires in the near future and you are contemplating whether renewing the agreement would be a wise business decision.
Is Your Business Making Money?
Is your business making money? Would you know?Figuring out whether your business is actually making money is no easy task. Most small business owners have a pretty good idea of what their top line is (their revenues), but unless they're closely tracking and inputting all of their expenses, the bottom line can often come as a complete surprise.
Due Dilegence 101 Or What You Do Not Know Can Kill You! - Part 1
Introduction:This article is written as a general discussion on the subject of "Due Diligence". It is for informational purposes and not intended to be a definitive guideline for your exact situation.
Overcoming Your Biggest Competitor
Before you read any further in this article, I'd like you to take a moment and write down who your biggest competition is.OK, got it?I'm going to go out on a limb here and tell you that no matter what company you wrote down, you're wrong.
How Micro Loans Can Mean Macro Success for Your Business
"Inch by inch, row by row..
Restaurant Operators - What Skills do you Need
A tongue-in-cheek look at the skills required to operate a restaurant but?on he whole they come pretty close to the truth.People Skills,You need to be good with people, because you will have different customers almost every day, you will have repeat customers who have higher expectations, a high-maintenance shift-based staff to manage, suppliers who won't always meet your expectations or time frames and creditors who want their money now.
Small Business Marketing: Specialize or Generalize?
There have been many great points raised on both sides of this discussion. In order to make a final decision, we must look at how the business world is moving and at the purchasing patterns of the consumers who will be utilizing your services.
Small Business Computer Security, the Basics
Anyone in business today realizes both the natural dependency on computers in the workplace, and also the potential dangers associated with storing important data on them. Today's business owners are constantly being reminded that their company's data is at risk by the daily reports on various news stations, or even their favorite business-related website.
Franchising Industry Burdened in Over Regulation
There were only an estimated 1800 active franchisors in this country at the end of 2002, that number down from 6000 in a single decade. It is not hard from this effort to increase regulations to see why.
To Buy Or Not To Buy: Lawn Mowing Business
TRUTH IN THE LAWN MOWING INDUSTRYWe do not wish to slander any company or person but instead share information that is of value to each and every one! Most people who enter this industry will be effected by one of the following and we see fit to share with you what we know and have seen.Buying Into A FranchiseOk buy into a franchise, spend 25 thousand.
3.5 Million People And A Possible UK Home Business Opportunity
Has this ever happened to you..
Are You Really the Boss in Your Own Business?
I recently met with a very successful magazine publisher who was telling me how a chain of retailers for his magazines wanted everything their own way, even at the expense of losing revenue for their stores and missing out on the opportunity to provide real customer service to the customer.He was mainly concerned that some of the members of this chain, which, was made up of basically "mum & dad" store owners honestly thought that as it was their business, no one else should ask them to do anything over and above what they wanted to do.
Top Ten Blunders Business Owners Make
In today's marketplace the words 'job security' have become an oxymoron. So more and more people are venturing on their own.
Build Credibility, Value, and Trust on a Shoestring
Setting priorities in your business? Your first job is to sell. Selling is - writing the orders; receiving the cash; feeding the beast.
10 Ways to Start a Business on a Budget
If you've been thinking about starting a business, but are held back due to cash-flow issues, there are plenty of ways you can get your plans off the ground. Though your vision may be to own a big store, restaurant, warehouse, or office, consider starting on a smaller scale.
How to Remove Stress from Owning a Business... Forever!
I meet and talk to hundreds and hundreds of business owners every year and do you know what I've discovered? Virtually all of them are regularly suffering from stress.It dawned on me while running a seminar one day.
Starting an Aircraft Washing Service
To wash an airplane there are many items you will need to keep in mind. The first is safety while working on the tarmac of an airfield.
How to Prevent Home Business Burnout
As a home business proprietor, you may already realize why avoiding "home business burnout" is so important. Even if you have only been working your home business venture for a relatively brief time, you may have already been aware of the need to maintain your energy levels and reduce your stress levels while you were involved in your other employment.
Direct Mail - For Small Businesses
We hear a lot of talk about junk mail nowadays. Many peoplewill tell you that they dump it straight in the trash.
Accounting and Billing Procedures for Small Business
No matter how small your small business is, it is essential to have some sort of accounting and billing police and methodology. This will prevent you from making mistakes and upsetting vendors or even bouncing checks.

More Small Business Information:

Related Articles

Encouraging Your Customers to Pay On Time
Nothing can drive a business down faster than customers who don't pay their bills as agreed. When you sell to customers on credit you are making an agreement with them.
25 Valuable Phone Numbers For Small Businesses Success
Starting and growing a small business can be a daunting and sometimes lonely process we have compiled a list of 25 helpful phone numbers for agencies and services that work with small businesses. They can give you information, ideas, and resources to help you be more successful.
How To Create A Business Note That Is More Attractive To A Note Investor
You are selling your small business (business value under $1 million for this article). You would like the buyer of your business to come in with an all-cash offer, or be able to qualify for an SBA guaranteed loan.
How to Define Business Objectives
Why does a good business relationship rely on having some common business objectives?As you attend networking events, you will gradually find ways that make it easy for you to mingle and be heard. Your message will need to be clear, focused and consistent each time.
Small Business Debt Collection Laws
In your small business debt collection laws will eventually become important, as your debt grows and some clients do not pay. To collect small business debts legally, you must send a written notice that collections have begun, within five days of first contacting the debtor for collections.
Accepting Checks in Your Business Virtually Risk Free
Most businesses accept checks as form of payment for goods and services. However, accepting checks can be a risky endeavor if your company doesn't follow good policies and procedures for preventing loss from bad checks.
Collection Agency Selection
Frankly, given the legal and regulatory requirements involved in attempting to collect a debt, it makes as much sense to do it yourself as it does to try to remove your own appendix. A collection agency is, on the whole, much cheaper than a doctors - and lawyers.
Small Business Success - It's a Matter of Confidence
I was floored! I couldn't believe what they were saying! But there they sat -- three of the biggest film stars of our age -- telling the world they had issues with confidence. I was watching an interview where Meryl Streep, Nicole Kidman and Julianne Moore were talking with Oprah Winfrey.
Perception: What Are Your Patients REALLY Hearing?
Never underestimate the power of perception! Perception plays a major part in what is actually said -vs- how it is heard. And to patients.
Keeping your Business Alive
As long as you eat and breathe you will stay alive. But is that really living? In a crisis that may be enough.
Joint Venture Your Way to Extraordinary Sales!
You know what makes me really happy? Drinking a Starbucks latte while doing my grocery shopping at Safeway. Getting my Godiva fix at Barnes & Noble.
Multiple Clients Create Your Independent Business
Would you rather have one good client paying you fivethousand dollars per month or ten smaller clients payingyou five hundred dollars each per month? Here are two good reasons for choosing multiple clients over just one client.1.
The Perfect Mission Statement
One way to determine your companies mission statement is based on a general overview of the company. Some important questions are asked like: Why does the company exist and what kind of business is it in? Is there a particular market or niche that it will concentrate upon? How will the company be distinctive in its business methods? Once these questions are answered, the focus moves to the accomplishment of these broadly expressed objectives.
Where to Find a Cash Windfall of $10,000 to $1,000,000 -- You Never Knew You Had
There is a rather famous true story called "Acres of Diamonds".It is about a successful farmer who risks everything searching the African continent for diamonds.
Change May Be Your Ace in the Hole
Whether it has been thrust upon you by external market forces or it has simply bubbled up from the internal dynamics of your enterprise, change itself always presents opportunity for improvement. And in a knowledge based economy, change may be the only thing we can count on as small business people.
Choose Your Own Guru
What is a guru?A guru is a teacher. A mentor.
Franchise Sales and Use of Online Franchise Directories
Franchising Directory Sites-Paid Advertising, Lead Generation for FranchisingFranchising Directory Sites are not doing the Industry any good. Typically they charge a fee for advertising per month or charge per sales for the lead, there must be 50 such sites.
Going Public: The Process for Small and Mid-size Companies to Go Public
It's the dream of every person who starts a business to some day see it trading in one of the stock exchanges even after they are no longer associated with the company. The first step (#1) is simple since most small company are already incorporated and have a board of directors, so we will start with #2.
How to Get Started As A Government Contractor
Becoming a contractor or sub-contractor for the U.S.
432 Page Franchise Report by the FTC
The Federal Trade Commission is upgrading the franchise law and they have made a report. Recently I have been reviewing the FTC's franchise rule report page by page.