Ownit Live Chat Recap: Freeing Up Cash In Your Business
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Transcript of Ownit Live Chat Recap: Freeing Up Cash In Your Business
In 2005, Leslie teamed up with her best friend Meredith to start NutraBella, a business focused on prenatal health. 10 years later, she's an expert on what it takes to build a business from the ground up, including how to find funding.
Live Chat Recap: Freeing Up Cash in Your Business with Leslie Barber
Live Chat Recap: Freeing Up Cash in Your Business with Leslie Barber
Leslie recently joined us for a Live Chat, covering tough topics like finding funding, cutting expenses wherever you can, creating a board of advisors to help with financial decisions and partnering with other businesses for some passive income.
Live Chat Recap: Freeing Up Cash in Your Business with Leslie Barber
Visit OWNIT.com for the full Live Chat recap including additional information and links.
A little here and a little there adds up to a lot month after month. The key for managing cash flow is to keep e x p e n s e s d o w n t o t h e b a r e necessities and maximize revenue.
Where is your cash hiding?
It’s important to know exactly what money is coming in and what money is going out. Products like QuickBooks enable you to know where you stand at every moment. That’s critical so that you can act. If you need cash, go get it. If you don't, celebrate!
Where is your cash hiding?
Rent Are you paying for a store front you don't need? Is your space too big? Could you negotiate better terms?
Cash Hideouts
Credit Cards Are you paying high interest or annual fees? Could you move balances to lower APR cards?
Cash Hideouts
Inventory This is one of the biggest cash sinks for any business. Are you carrying too much inventory? Could you bring your production to just-in-time or decrease the amount of stock you carry?
Cash Hideouts
Accounts Receivable Do your customers owe you money? Don't be shy – if the cash is yours, go get it. Be brave!
Cash Hideouts
Where do you go for startup cash or growth funding?
Family and Friends
Leslie says “Don't take money from anyone who can't afford to completely lose it. There are a lot of emotions with friends and family so be sure you are completely comfortable.“ It’s important that both sides understand the potential for the loss of the investment.
Where do you go for startup cash or growth funding?
Crowdfunding 1. Kickstarter 2. GoFundMe 3. Indiegogo 4. Crowdrise 5. Crowdfunder 6. RocketHub 7. Appbackr 8. AngelList 9. Invested.In 10. StartSomeGood
Where do you go for startup cash or growth funding?
Line of Credit
Leslie says “If you have several years of profitability, always carry a line of credit – go get one today! It can save you in a pinch and is worth the small costs. A friend who runs a flower delivery business shared with me the day that her flower cooler broke, risking $80,000 in flowers. That was the day that she got her line of credit. Do it now before you need it.”
Where do you go for startup cash or growth funding?
Angels
There are many angel groups who want to support women and people of color starting businesses. That can be a terrific way to not only bring in money, but also bring in ideas and experience into your business.
Where do you go for startup cash or growth funding?
Personal Credit
Using personal credit may be your only option, but be wise. Leslie says: “I learned the hard way that it can really hurt you if you want to buy a house or take out a personal loan. Make sure this is what you are willing to risk.”
Cutting Costs
Other than funding options, there's always cutting back on expenses to free up some cash.
Cutting CostsLook at every single thing that you spend. Nothing should be sacred. Even small expenses like pens and other office supplies add up.
Cutting CostsExpenses should be as lean as possible, especially those expenses that do not have revenue tied to them. You should always ask for a discount or a better deal. If they say no, you tried! If they say yes, you win.
Getting PaidLeslie says “Sometimes a good old fashioned phone call can help move everything forward. We are all bombarded with so much email and text these days. Sometimes just reaching out by phone can help move things along. You never know why they're not paying the invoice. Are they not receiving it? Do they have financial challenges? Give them a call and try to connect with them personally. You might be surprised what you learn.”
Partnership Programs and Advisors
Business partnerships can be really awesome. But they need to be a win-win for both sides. Leslie says “I think partners and influencers are like spouses. We need to make sure we're getting in bed with the right people!”
Partnership Programs and Advisors
Starting a business "takes a village." Find an advisory board or an entrepreneurship group who can support you in your decision making. People love to give you their thoughts, ask them for help! And formalize it if possible. Perhaps a monthly call?
Partnership Programs and Advisors
Treat any business partnership like a major financial decision. Vet them. Ask them to propose something to you and then evaluate it. You can be nice, just don't be a push-over.
FIND MORE INFORMATION on OWN IT• Visit OWNIT.com for the full Live Chat recap
including additional information and links. • Check out the rest of our helpful series. • Join the Network Dedicated to Small
Business Success. • Connect with thousands of small business
owners like you with our free app.
https://www.ownit.com/communities/ownit/posts/755785
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