Recent Articles

Finance

Cash is the lifeblood of any business, especially a small business operation. Find out how to raise capital, understand cash flow, financing of fixed assets and regular operations via banking instruments. Finance covers the cash aspect of the small business operation.

Working Capital Management – Production and Sales Flow

06/24/2017

There is no single management style to address the multitude of working capital cycles existing in the various business sectors and the underlying industries.   Taking raw resources and turning them into consumer goods has different time frames [...]

Working Capital Cycle

02/13/2017

The college textbook definition of working capital is current assets minus payables and accrued expenses.  The term explains the dollar value of flexibility a business operation has to take advantage of immediate opportunities or endure sudden or [...]

Debt or Equity in Small Business – Fundamentals

01/30/2017

Small business books and manuals explain the formula used to determine whether additional debt increases the return for investors commonly known as return on investment (ROI).   I find this laughable in our modern economic times given the low cost [...]

Working Capital Management – Fundamentals

01/01/2016

Working capital management is a function of finance whereby management ensures adequate cash is available to meet operational needs over the typical working capital cycle.   The underlying elements of working capital management include 1) [...]

Penny Stocks- Introduction

11/19/2015

Those small publicly traded businesses with share prices of less than $5 and capitalization of less than $50 million are referred to as penny stocks. Penny stocks may trade on any of the major stock exchanges. For investors the risk is generally [...]

Working Capital

10/20/2015

Cash is the lifeblood of every business. Without cash a business operation can come to a standstill. Cash is one component of working capital, a term referring to current assets (Gross Working Capital) less payables and accrued expenses. The term [...]

Cash Flows – Introduction

10/19/2015

Insolvency is defined as the inability to pay liabilities as they come due. To meet the demand of creditors cash is required. For most small businesses there are as little as a single source to multiple sources of cash. Think about these two [...]

Convertible Debt

03/13/2015

In poker, deuces are often called the wild card.  You can use the card as a ‘Two’ or as any other card in the deck.  In effect, you can convert the card to something else.  Well, convertible debt uses the same principle in business.  The [...]

Crowdfunding in Small Business

12/07/2014

The process of collecting a large pool of investors, each contributing or investing a small amount of dollars for a highly focused project is referred to as crowdfunding.  The crowd is financing the project or goal.  This is very similar to how [...]

Recourse and Nonrecourse Types of Loans

04/27/2014

When a lending institution loans money they mostly fear nonpayment of the debt.  Often these loans were implemented due to a third party’s endorsement.  To qualify the endorsement the bank may require the third party guarantee the debt.  This [...]
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