Managing cashflow for your small business to keep it alive

In today's capitalization market, you are more likely to attract investors if your business is already "cashflow positive." Owners should be vigilant in keeping costs down and look for opportunities to grow comfortably.

Photo: Rohann Agalawatte/Burst

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StatePoint Media - Intelligent cashflow management is the essential fuel of startups and digital businesses, particularly in a challenging economy. According to experts, it can mean the difference between surviving, thriving and failure.

“Poor cashflow management will kill your business. In fact, it’s killed some of the biggest businesses in the world. No matter how fast you’re growing, you could be destined for the startup graveyard if your outgoings exceed your revenues,” says Dominic Wells, serial entrepreneur and CEO and founder of Onfolio Holdings, a leading online conglomerate that acquires and manages a diversified portfolio of online business holdings.

To help startups and digital businesses not only survive a downturn, but remain profitable while accelerating growth, Wells is sharing some top actionable insights for the current moment:

1. Know that capital is harder to secure.
While during periods of low interest rates, it was possible to burn through capital, that’s no longer the case. “Don’t assume you can just raise more money. Investors are avoiding businesses that aren’t already cashflow positive,” says Wells.

2. Change your priorities.
Founders must review spending line items and identify the areas generating the greatest returns. Double down on those. Cut or reduce your spending elsewhere.

3. Focus on short-term growth.
Certainty beats speculation right now and investors are choosing businesses that will generate near-term certainty with monthly recurring revenue over those with potential long-term growth.

4. Make profitability your number one goal.
Aim to be profitable enough to pay yourself a decent salary, cover business overheads and keep cash in reserve. If you’re looking for a buyer or investor, have solid numbers to show them. In Onfolio’s case, the investment criteria are established businesses generating annual profits over $500,000 in sectors and niches with high-growth potential. Without the metrics to support why you deserve funding, investors and buyers aren’t lurking around the next corner, ready to leap out with a check.

“It’s not easy to execute, but your goal is simple. Keep asking yourself, ‘are we profitable?’ If the answer is no, do everything you can to get there quickly,” says Wells.

5. Become more financially secure.
At a time when many operations are cutting costs, making your service indispensable to customers so that they stay with you, or even spend more money, can help make you more financially secure. It’s time to deploy strategies and technology that generate more revenue from your current customers. For example, if you’re a website owner without a subscription upsell, now is the time to implement one.

For more tips and insights and to learn more about digital company acquisition, visit onfolio.com.

“New challenges arise for small business owners and digital companies during downturns,” says Wells. “Being savvy about the current climate can mean not just your survival, but your continued success.”

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The perfect side gigs to get you through the next pandemic or economic downturn

Some side gigs are better than others. There are five that standout for people who need or want to work from home.

Photo:Bruce Mars/Unsplash

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Night deliveries can be a perfect solution for people who work long shifts at home and need something past bedtime.

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SNS - As much as we would like to think it is, the COVID-19 pandemic is not over, even though most countries and aspects of life are returning back to normal. Facing the facts, the way we work and live has changed forever. In many respects, the pandemic has brought a new level of financial insecurity that might never ever fully go away.

Thousands of people were laid off in the last couple of years thanks to the global pandemic. For many, their earnings have been significantly reduced or put on pause. This increased the need to look for alternatives to full-time jobs and ways to earn money from home.

If you are looking for a side hustle rake in extra cash when you can’t go to the office, here are five pandemic-proof side gigs that will inspire you to jump into multiple income streams and make ends meet during the next pandemic outbreak.

Step up the delivery game

With people staying at and doing more from home than ever, the number deliveries on a daily basis has increased drastically. Nearly everything - food, drinks, medicines, and even building supplies - can be delivered to the customer's front door.

Kindel Media/PEXELS

Use this opportunity to step up the delivery game, and instead of joining big companies such as Uber Eats or Door Dash, go for something out of the ordinary.

Carefully research local delivery trends in your city. Look to see if there is a need for something else. Night deliveries can be a perfect solution for people who work long shifts at home and need something past bedtime. Plus, after hour deliveries are billed at a premium, too, so you can earn quite a bit of cash this way.

Sell and rent things you don’t need

Spending more time at home probably gave you time to clean up your home and eliminate the items you no longer need. You should consider selling some of these items and earn some extra money.

Also, renting excess stuff or space in your home is a great way to earn more without making a big commitment.

For example, people living in big cities often have storage issues in their homes. City dewellers are always looking for more space, and renting out space in your storage unit, shed, garage, or basement might be a low-stress way to bring in extra cash without having to really work at it .

Have an RV? Rent by the day, week or even month to people who love to travel. If you have a truck, you might rent out for a day to someone is moving to a new apartment or home.

Renting is a great side hustle because it is a relatively passive income, makes money from things you don’t use, and is incredibly versatile. You can rent almost anything – just be sure to market it correctly.

Become a content writer

Put those good grades in English grammar and information from all the books you have read for school or pleasure to work. It has never been a better time to be bookworm.

All sorts of websites and companies are looking for good writers to develop and provide content for their online platform. Writers who are creative, good with words, and can produce work on deadline will find no shortage of opportunites. Even working part-time, you can earn hundreds of dollars creating online content.

Photo: Alexander Grey/Unsplash

Concentrate on niches you are familiar with to make it easier to do research for you articles and write pieces quickly. And, who knows, this might become your full-time job!

On top of that, content writing is a career you can easily work from home at your own pace. It is one of the best pandemic-proof side gigs! All you need is a computer and an internet connection.

You will also need a place to work where you can focus. Create a writing nook or home office to help you stay away from noise and other distractions.

Virtual assistant – helps others be organized and efficient

If your old job was not the right place to show your organizational skills, punctuality, and creativity, this one might be the right for you. Working as a virtual assistant is a perfect way to demonstrate superior multi-tasking and problem-solving skills while helping others run their businesses smoothly or deal with significant life events organization.

While you can help a business owner deal with time-consuming, repetitive tasks such as managing calls and emails, you can also help people organize events such as weddings or even relocating to new cities.

Let’s say someone needs to move a big household without taking a break at work – you can step in and assist them with the packing organization, hiring a moving team, and other tasks, and show them they can stay productive during the move even when there is a lot on their plate.

Remote tutoring

Another pandemic-proof side-gig you can do with almost any skill you are good at is online tutoring.

The internet has given us the power of live communication, making it easy to teach someone the same way you would in person, so use this to your advantage and earn some money. You can teach kids, older students, and adults – just pick a skill or subject you are really good at and be ready to share your knowledge.

However, tutoring is not something everyone can do. You will need a lot of patience and excellent communication skills, not to mention the ability to adapt to different styles and paces of learning for your students. If you have a skill that is ready to share with others, this is the right side gig for you.

Indeed, the COVID-19 pandemic has caught the business world off guard, and many people struggled to make ends meet. A lot of Americans still have not recovered to pre-pandemic financial health.

This era brought many financial, physical, and mental health issues that we must deal with for years to come. With these pandemic-proof side gigs you can continue to earn money, explore your creativity, skills, and possibilities and feel better about yourself.

Staying at home during a pandemic can be challenging. Finding a way to keep moving forward and working is essential to your mental health and helps to keep anxiety and depression at bay. Throwing yourself into a new opportunity is a great way to develop an always-adapting mindset that will help you overcome hard times, such as job loss, and use your skill set to take advantage of the situation.

Photo: Brooke Cagle/Unsplash

Tutoring online or in-person to help others succeed is a fun and rewarding way to earn money during a pandemic or whenever you need to make extra cash.

Is your small business ready for the next pandemic lockdown?

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SNS - As the lasting effects of COVID-19 become more and more apparent, many business owners are asking themselves how they might prepare for the next pandemic. For this reason, it is important that business owners have a plan in place for the future.

This can include a variety of different solutions. Most of them involve optimizing existing practices in addition to developing new strategies. With a solid strategy in place, you can ensure the company is able to ride out any disruptions.

Furthermore, businesses can take proactive measures now and remain proactive throughout any further lockdowns. This will allow them to mitigate their losses and decrease the overall impact of any future pandemic. That is why, In this article, we'll take a look at some helpful guidelines to keep in mind as you prepare for potential pandemics.

1. Review Your Business Operations

Reviewing your business operations is a critical step in preparing for a potential lockdown. Assessing your business model to ensure it's sustainable during a lockdown, identifying which products or services can be offered remotely, and evaluating how your supply chain may be impacted can help you determine which aspects of your business need to be adjusted to maintain operations.

Assessing your business model involves taking a close look at how your business functions and what changes may need to be made in order to continue operating during a lockdown. This is especially important if you are running a small business. For example, if your business relies heavily on foot traffic, you may need to consider new marketing strategies or offering online services to continue generating revenue.

Photo:Microsoft 365/Unsplash

2. Examine Your First Reaction to COVID-19

How did you handle prior lockdowns, and where did you make mistakes?

The first thing you must do is to revise your pandemic preparations if necessary. If you can identify the points at which your company's response is stalled, you can take steps to fortify your business continuity plan. Vaccines, for example, are more readily available today than in 2020. However, since the window of opportunity to receive the vaccine is small, vaccinating your staff now can be a good first step in preparing for the next outbreak.

3. Take Your Businesses Online

As a precaution against the global spread of COVID-19, several nations have instituted mandatory lockdowns, requiring workers in many industries to work remotely. Because of this, now more than ever, we are dependent on technology to do our jobs. That's why there's been a surge in money spent on new technologies. Companies that want to survive have adapted by allowing their workers the flexibility to do some or all of their duties from the comfort of their own homes.

This means that if you wish to prepare for the next pandemic, you have to create a hybrid work model. While this may seem like a bad thing, it is not. It will allow you to downsize and save money on rent. That said, if you decide to downsize and move your office someplace else, you should know about some challenges that can come during this process. 

4. Use Technology to Augment, Not Replace, People

Throughout the COVID-19 crisis, technology has allowed us to reevaluate how we go about even the most basic tasks. While the stock market's trading floors were closed, the market itself continued to function. For instance, the United Kingdom's Parliament now exists online.

Virtual call centers are proliferating all over the globe, and some of them even utilize AI. They use it to keep up with the volume of calls and the quality of service they provide.

These advances are remarkable, but many of the technologies and tools we are now getting a crash course in — like Microsoft Teams or Zoom — have the potential to allow us to achieve much more.

Rather than integrating technology with the existing workforce, many companies' first instinct is to replace employees with machines. Company heads should take advantage of the current time to consider how their companies may better use technology to enhance human capabilities in order to boost productivity, enrich the lives of their workers, satisfy their consumers, and stimulate economic expansion.

5. Devise a Lockdown Exit Strategy

The gross domestic product of several countries has recently plummeted as a result of the pandemic. For this reason, Governments are seriously considering certain lockdown escape strategies. These strategies will enable them to reboot economies while minimizing losses.

In a similar vein, companies will need to find out how to resume normal operations while still prioritizing the safety of their employees and coping with the immediate fallout of the lockdown. Planning is necessary for employees' eventual return to the office, as well as for any visits to customers' locations.

Since few businesses would return to the same working and customer service habits they had before 2020, we can anticipate short-term effects on productivity, prices, and employee morale. Additionally, in order to switch vendors quickly and easily, businesses may need to make their supply chains more agile and flexible.

6. Upskill and Cross-Train the Workforce

If you want to prepare for the next pandemic, you must look at cross-training their staff to guarantee the smooth running of the firm. This will provide them with more adaptability and a quicker turnaround when redeploying personnel.

That said, a skills audit may help firms gain insight into their staff's collective expertise. This tool can help you identify areas where your employees lack the necessary skills or where one person's absence could cause a coverage gap. With this information, you will be able to ensure that your business can function no matter what happens.

Conclusion

Now you know that if you want to prepare for the next pandemic, you need to plan carefully and have effective communication and flexibility. Reviewing your business operations, creating a contingency plan, investing in technology, and communicating effectively with customers and employees can help you weather the storm and emerge stronger on the other side.

By taking these steps, you can position your business for success even in the face of unexpected challenges. With the right preparation, your business can not only survive but thrive in the midst of a lockdown.

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Turn your passion into online profit

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NewsUSA - Have you ever shopped at someone’s personal online store and thought, “I could do that”? In the wake of the pandemic, more people are reinventing their work lives and choosing to follow their passions. And the ever-expanding world of e-commerce makes it easier than ever to turn your pastime into a profit.     

Launching an online business can seem daunting, especially if you lack a background in technology, computer programming, or website building, but it doesn’t have to be. The right website host and store builder platform can make setting up the online business of your dreams a seamless process.     

Nexcess, a company dedicated to ecommerce entrepreneurship, offers several tips for how to get your ecommerce business off the ground, whether you are selling physical products, digital products, or online services ranging from consulting to yoga classes. Key considerations when launching any ecommerce business include:     

- Sales. The most efficient ecommerce platforms keep it simple with automated sales and performance tools. Nexcess also has a membership website builder that allows you to add subscriber-only content for even more sales.     

- Management. Setting up an online store should be simple. Platforms such as Nexcess StoreBuilder include intuitive features that let you design a beautiful online storefront with no need for coding or a website designer.     

- Mentorship. The best platforms for online businesses have fast speed, strong security, inherent scalability, and, last but not least, competent and responsive tech support for any problems and questions that arise. Nexcess managed hosting provides live chats with a website hosting advisor to help you get started and make a plan for success.     

If you have an existing online store or website that you want to upgrade, Nexcess offers free website migration to or among any of its website hosting platforms, with 24/7 support that kicks in immediately.     

Also, many ecommerce entrepreneurs miss the importance of a business location when establishing online. The business may be in cyberspace, but location still matters for taxes and other administrative purposes.     

Some states are more appealing than others for ecommerce business owners. According to a new ecommerce study, Florida is the number-one state for ecommerce businesses, based on criteria including tax climate, economic outlook, financial resources, and infrastructure.     

Rounding out the top ten states for ecommerce businesses are Utah, North Carolina, Texas, South Dakota, Nevada, Montana, Colorado, Indiana, and Tennessee. The great thing about an ecommerce business is it can launch from any state with a website and a good idea.

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7 big mistakes small businesses can't afford to make

Photo: David McBee/PEXELS

by Courtney Rosenfeld

Running a small business often means wearing many hats. From accounting to marketing and everything in between, it can be difficult to know all the ins and outs and to always make the right decision. Here are seven mistakes to avoid in order to turn your new venture into a big success.

No Business Structure

When you start as a solopreneur, you may be tempted to forgo all the legalese and just work on launching your product on the market. But not choosing the right business structure and not registering as the right business entity can end up hurting you in the long run.

For example, When it comes to incorporating a business, there are two main options: an S corporation (S corp) or a C corporation (C corp). You need to understand the S Corp vs C Corp pros and cons, so it's important to do your research before making a decision.

Photo: Andrea Piacquadio/PEXELS

One key difference between the two is that an S corp has pass-through taxation, meaning that profits and losses are passed directly to the shareholders, who then report them on their personal tax returns. A C corp, on the other hand, is taxed separately from its owners. Another notable difference is that an S corp is limited to 100 shareholders, while a C corp can have an unlimited number of shareholders. This can be important if you're planning on expanding your business in the future. When it comes to raising capital, a C corp has an advantage because it can sell shares to the public. However, this also means that there is more paperwork.

Ultimately, there is no right or wrong answer when it comes to choosing between an S corp and a C corp. It depends on your specific business needs and goals.

No Business Budget

For small businesses, keeping track of where the money is coming and going is critical. It will help you separate your personal and company finances, see how much your company is making, and establish what your fixed and variable costs are. Without a budget, you can’t set spending goals or run financial projections to attract potential investors or partners, which will hinder business growth.

No Marketing Plan

So you have a great product, but what good is it if no one hears about it? Without a strong advertising and marketing plan in place, you won’t be able to reach out to your target audience and ultimately generate sales. Failing to do some market research, analyzing what your competition is doing, and forecasting industry trends will prevent you from creating effective ad campaigns that will resonate with potential customers.

No Social Media Presence

It’s not just the kids doing it anymore; in today’s digital world, every business is online, posting content and engaging their followers on various platforms. This is where you showcase your brand and create sales funnels. You can also use social media to join groups and share your expertise, putting yourself out there for all the world to see. Keeping your content useful, relevant, and timely will also help you gain more customers.

No SMART Goals

Setting specific, measurable, attainable, relevant, and time-bound goals will help you steer your business in the right direction. Without SMART goals, you won’t be able to clearly see the end result, and you’ll be left wondering if your company is performing the way it should. Short-term goals are great to help you stay on track and motivated so that you can reach your long-term goals and turn your budding company into a big success.

No Legal Guidance

You may be a do-it-yourselfer in most areas of your life, but when it comes to your business, make sure you consult with experts and professionals to avoid costly fines and penalties. Not filing the proper paperwork with the state, or failing to register your business and paying the fees and taxes required to be in compliance, could lead to huge penalties and even put your company under. Consulting a business attorney may cost you upfront, but their expertise will definitely spare you troubles later on.

No Time for Fun

As excited as you may be to launch your own venture, make sure to carve out time for self-care once in a while. Too many entrepreneurs end up suffering from burnout because they don’t think they can afford a day off. But in order to refuel and spark your creative juices, you need to step out of the office and enjoy some downtime once in a while.

Owning your own business can bring you great freedom, but make sure you avoid pitfalls and take the necessary steps to keep it successful. Don’t hesitate to get expert advice, and hire professionals to fill in potential gaps. Your company will keep thriving, and you’ll enjoy running it.

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Courtney Rosenfeld started Gig Spark to be a resource and the first step for people who are looking to join the gig economy, either to supplement their income or as a way to fulfill their dreams of becoming an entrepreneur.