
If you are constantly reviewing your balance sheet, implementing error-eliminating billing solutions, and shrinking your fixed expenses to the barest minimum, you can�t always fully protect yourself from a cash-flow disaster. Sometimes, thing are simply going to go wrong, and when they do, it�s important that you have a backup plan in place to save the day. Being prepared ahead of time lets you better survey your options, and make a better and less frantic choice of what to do in the event you wind up running into problems. Potential backup options to look into include establishing a line of credit with a lender, setting aside your own personal funds for an infusion, and having potential partners willing to purchase a share of your business.
A small business� cash-flow is extremely dynamic. It is always changing and can even vary greatly from day to day. This, combined with the fact that most small businesses don�t have the resources to survive a financial disaster, means that you should always be monitoring for cash-flow problems early and taking steps to reduce expenses and ensure you�re being paid in a timely manner. In reality though, not all cash flow disasters are avoidable, making it even more important that you make sure you have a backup plan in place as a last resort.