Monday, April 19, 2010

Cash under the mattress?

A recent study conducted by Brother International asked 500 business owners what they thought about the current economic conditions. Of the 500 surveyed 53% said stockpiling cash was the best strategy for getting their business through the tough economic conditions. While this theory may not work for everyone having ready cash reserves is always a good idea.

Efficiency is also a concern with most surveyed saying they will strive to make their companies more efficient this year. Cutting costs whereever possible and holding off on those large expendetures may be a necessary way of reaching this efficiency.

Planning of course is the key to running any business. While most companies do utilitze a business plan certain circumstances make sticking to it difficult. The current economic situation is a good example. Whatever the current climate always try to at the very least prepare yourself with a financing plan. There are a number of alternative financing opportunities for businesses like SBA loans, asset based loans, and invoice factoring to name a few. While having a little cash under the mattress can't hurt, these other sources of financing might be a safer bet.

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