Celebrating America’s Entrepreneurs
Spanning more than 50 years, National Small Business week, May 1-7, offers us the opportunity to celebrate the 32.5 million small businesses and the countless contributions they make to local communities, their part in bringing new ideas to life and growing the national economy.
The Small Business Administration (SBA) theme for National Small Business week is “Building a Better America through Entrepreneurship.” In addition to recognizing top entrepreneurs across the United States, the goal of this week is also to encourage small business owners to learn from the marketing campaigns and operations of larger businesses in order to scale up their own operations.
Following are resources Universal Funding has created to help small businesses improve their finances and operations.
As a business owner, it can be valuable to get a hold of your finances effectively. The tools you have available with today’s technology can help you manage your finances more efficiently saving you time and money. In order to best sustain your business momentum, there are several practices you can integrate into your routine.
If you have negative working capital, your business is in serious trouble. But merely having positive working capital is not enough. Ideally, a company should be aiming for a ratio of current assets to current liabilities of 2 to 1. If you hit that 2:1 ratio, you will be able to manage your cash flow comfortably, and you will have the leeway to cope with the usual peaks and troughs in profitability. The strict accounting definition of working capital, however, is only a part of the equation. For example, you could have positive working capital and have a large amount of cash tied up in unpaid sales invoices. That situation could give you a healthy working capital ratio and a cash flow problem.
Managing the cash flow of a small business can be tricky at the best of times. Limited resources mean that one wrong move can significantly affect the bottom line and the money in the bank. For example, one bad hire would not bring down a big business. However, hiring an unproductive or disruptive employee for a small business with only a handful of employees could be disastrous.
The effect of poor decisions or unexpected changes in fortunes may be more pronounced in a small business. But the underlying causes of cash flow problems are the same regardless of the size of the enterprise. If you know what those risks are, you are more likely to avoid them.
A business owner has much on their plate, so managing the finances of a small business can be challenging. Consequently, it can be easy to spend more than anticipated and not discover the overspend until the cash flow gets tight.
You spend lots of time and effort in building up your business. Don’t let scammers ruin your reputation and damage your bottom line. Scammers are known to target businesses of all sizes. To protect yourself against these offenders, learn about the tell-tale signs that are typical of a scam and keep your company’s employees informed as well.
Building a Better America Through Entrepreneurship
As a fellow small business, it’s an honor to celebrate the resilience and tenacity of entrepreneurs who are doing their part to power our nation’s economic growth and deliver products and services Americans depend on each and every day. Small businesses account for half of America’s workforce, and more new jobs come from small businesses than any other source. They are vital to keeping America growing.
How You Can Support Small Businesses
- Buy Local: Support local small businesses by shopping local. The next time you search for an item online, add “near me” to your search inquiry to find out what local businesses can provide you the product or service you are looking for.
- Be Social: Boost your favorite small business presence on social media by liking and sharing their posts. If you have a great experience, take the time to write a positive review—it only takes a few minutes but will have a huge impact.
- Refer friends and family: You’ve just made everyone’s job easier whether searching for that perfect gift, plants for the garden, a bookkeeper, and the list goes on. By referring small business to friends and family, you’ve just improved the local economy. Now that’s what we call win-win!
- Tip generously: If you received great service at your favorite restaurant or coffee shop, this is one of the best ways to show appreciation.
- Be Kind: Expressing appreciation to the business owner can make their day. Right now, small businesses are stretched thin because of the tight labor market. If service slips during an encounter, go directly to the owner instead of taking your frustration out on employees or writing bad review online. Give the business owner an opportunity to rectify the situation directly.
Your Questions Answered Quickly
Whether your business is thriving and you can’t keep up, or you are waiting on clients to pay, Universal Funding can help your growing company. Call us at 800.405.6035 or complete our rate form today to learn more about invoice factoring and how it can improve your company’s cash flow.
About Universal Funding
Universal Funding is a nationwide invoice factoring solutions leader, supporting growth-focused businesses with scalable factoring solutions. With its invoice factoring, payroll funding, and purchase order financing services, Universal Funding provides clients with the working capital needed to grow and support their businesses without taking on new debt. Ranked as one of the nation’s top invoice factoring companies, Universal Funding provides cash flow financing for businesses all across the United States.