7 Cash Flow Mistakes Entrepreneurs Make

Expert advice on how to avoid the pitfalls that could cost your business money

Mistake #2: Not checking credit or references. Dunn says many small businesses think they can’t check references because they lack the capability to pull a credit report. “What they can do is just print out or buy credit applications and you can get them at any office supply store or you can just go online and get free credit applications and credit applications don’t have to be scary and long. “A credit application is very basic, it just asks people to fill in their name, address, phone number, and their work information, phone number, address and then if they have an e-mail or cell phone or anything like that.” The report then asks for references – bank reference, a vendor reference, and a personal reference. Then it’s just a matter of calling those references.

Mistake #3: Ignoring accounts as they become more and more delinquent – hoping the person will pay. “I used to tell people, you know we give people a little bit of a grace period five to eight days, but in this economy for the last three years, I’ve been telling people; maybe you want to call eight to five days before the bill is due,” recommends Dunn. She recommends calling the client to verify they received the invoice and asking if there were there any problems with the order. “If they’re a couple of weeks past due, the first thing to do, if you can if there is someone that is local to you is to pay them a personal visit. That works very well.”

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  • Carletta Threatt

    I need advice on increasing my enrollment
    at my Childcare center. The enrollment is
    down so low, a very nice center and the staff
    is certified.

  • Carletta Threatt

    Help in Macon Ga, I do not want to close my doors,help please… I enjoy reading the Black Enterprise…

  • Sheri M Green

    Hi Carletta, have you completed a comparison of your services verses your competitors in the same area? Figuring out why people are choosing other childcare centers over yours is key. Maybe a survey of what people are looking for in childcare throughout your area would be helpful. Just a few thoughts.

    Sheri M. Green

  • Michelle Dunn

    Sheri gives good advice, offer something your competition is not offering to make yourself more attractive to customers. Enrollment for childcare may also be down because of the economy – more people are out of work so watching their own children. Some things you can do to increase your cash flow are offer discounts, change your terms of payment, accept all methods of payment, offer something no other child care center offers to make yourself stand out.

  • Mr Yao kouamé hervé

    Salue je nomme yao k hervé originaire de la cote d’ivoire (c’est en Afrique)demande financière aux personnes de bonnes foies pour crée une entreprise pour se prendre en charge je suis au +22544014546 ou m’écrire à toupetait@hotmail.fr

  • Jorge Estemac

    I have established a corporation in Latin America with hope of promoting Afro-American businesses in that area of the Americas where the African-Americans are left outside the mainstream of society. The Afro-Americans in the USA should look outside the confines of continental USA, other ethnic and racial groups from other continents are taking advantage of these developing countries. I looking for Afro-Americans investors to join me in my efforts to develop opportunities for blacks in the rest of the Americas, and make a profit doing so. Globalization is for all of us to take advantages of the open market. I am seeking partners, investors in these ventures in the rest of the Americas.