Small businesses struggle with dangerous finances

LOCK HAVEN — In today’s business climate, entrepreneurs face countless obstacles to succeed.

Among them, according to research sponsored by The Entrepreneur’s Source, is financial management.

Dawn Brown, Clinton County business coach from The Entrepreneur’s Source, says, “about 50 percent of small business owners run into cash flow hurdles and use personal credit cards to finance operations in order to compensate for a lack of funding or revenue. This is a common, oftentimes unaddressed, issue that many entrepreneurs need to manage well.”

The Small Business Association echoes this sentiment stating that cash flow management is probably the most frequent problem for business owners.

Watching the cash inflows and outflows is one of the most pressing management tasks for any entrepreneur. However, Brown said a business owner must know the best sources for meeting additional cash needs and keep good relationships with those in finance, such as bankers and other creditors.

In addition, Brown says the most common areas of expenditures for companies come from technology, human resources, marketing and sales lead generation, office procurement, operational costs and inventory. Companies often expend more than 50 percent of their revenues purchasing goods and services; therefore, managing these costs well can have a direct impact on increased profitability.

Top trends in the industry suggest that finding people who can provide assistance or having the right partnerships in place when you need them are key to any small business’s success.

The Entrepreneur’s Source, a leading coaching and advisory firm, specializes in helping business owners learn what is putting their business at risk, explore options that will help them see their company more objectively and implement rapid impact solutions that will reduce expense and increase productivity resulting in a healthier bottom line.

“It’s often difficult for small businaess owners to focus on their overall business objectives. Most business challenges rarely have anything to do with the product or service a business provides. Business owners get caught up with working — in the business versus — on the business. Our job is to build lasting partnerships with business owners and implement the right solution in the right order that increases the value of our clients business,” Brown said. “Working with an E-Source Coach, entrepreneurs can create realistic goals, be accountable for these goals and make fact-based decisions, thus increasing company performance.”

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For more information on business coaching or The Entrepreneur’s Source in the Clinton County area, please contact Dawn Brown at (570) 748-2208 or esource@kcnet.org.