{"id":2639,"date":"2020-03-09T08:00:35","date_gmt":"2020-03-09T13:00:35","guid":{"rendered":"https:\/\/www.headwaycapital.com\/blog\/?p=2639"},"modified":"2021-11-19T00:37:21","modified_gmt":"2021-11-19T06:37:21","slug":"avoid-common-small-business-cash-flow-mistakes","status":"publish","type":"post","link":"https:\/\/www.headwaycapital.com\/blog\/avoid-common-small-business-cash-flow-mistakes\/","title":{"rendered":"Avoid These Common Small Business Cash Flow Mistakes"},"content":{"rendered":"

Getting your business off the ground takes time, patience and a lot of capital to get started; finding and maintaining clients is a whole different story. If you\u2019re not a professional accountant, managing your business\u2019s finances<\/a> can be a new and overwhelming process.<\/p>\n

Low cash flow is one of the biggest challenges for many small business owners, and it\u2019s also one of the most common reasons why a business might fail<\/em><\/a>. That\u2019s why it\u2019s essential to prepare for potential lapses in operating cash, periods of lower sales and unforeseen or unavoidable expenses.<\/p>\n

With a little research and a couple options on hand, you\u2019ll be better prepared for the inevitable ebbs and flows<\/a> of running a small business. Here are five common small business cash flow issues, and tips on how to avoid them.<\/p>\n

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1. Overspending on Supplies and Space<\/strong><\/h2>\n

It may be tempting to source trendy artwork, include high-end amenities and even purchase new hardware and workstations. But brand-new supplies and a larger than necessary footprint come with a hefty price tag.<\/p>\n

Instead of shelling out for top-of-the-line furniture, supplies and materials, aim for secondhand or gently used commercial equipment. Look for low-cost office d\u00e9cor, or hold off on perfecting the space if clients don\u2019t visit your location until you have a bit more room in your budget.<\/p>\n

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2. Carrying Excessive Inventory<\/strong><\/h2>\n

Old or excessive goods can be a liability for your business. Inventory that\u2019s not liquid, or easily sold, can create a cash flow issue when you have too much on your shelves. Finding the right balance of inventory that you can actually sell without running out of stock is key.<\/p>\n

Tips to Manage Your Inventory:<\/strong><\/p>\n