Cash flow woes of 2006: beating the ups and downs of business.(Headline)

With more than half of the year 2006 gone, businesses must re-evaluate their cash flow strengths and weaknesses. Most businesses will either gain or lose profits during the final months of the year, so preparation is a must either way.

Studies show that cash flow, or a lack thereof, can make or break a business. For 2006, there are some definite cash flow woes, and businesses across the nation must avoid these if they are going to be around for 2007. Karlene S. Robinson of KPR Funding Solutions, LLC, reveals these woes and some quick tips to improve cash flow for the remainder of 2006. She recommends that you study these tips to find ways to improve cash flow on either side:

1. Build a Cash Reserve: Whether a business is just starting out or fully established, a cash reserve is a must. This is simply a set amount of cash put back into savings for emergencies.

A rainy day, a sales slump, a natural disaster that leaves the business closed for several days (or even weeks), health or even personal issues can occur when least expected. Robinson encourages business owners to save enough operating cash for the business to last at least several months when hard times hit.

2. Re-evaluate Business Cash Movement: Cash moves in and out of the business bank account for items such as invoicing, outgoing bills, cash jobs and payroll. Business owners need to know where their cash is going and where it is coming from.

One example is to re-evaluate invoicing techniques. Studies show that invoicing for long periods of time can result in nonpayment. There is only a 70 percent chance ...