Finance

A company’s cash flow can be more important than the profits or losses that are reported in its financial statements. It is not unusual that a business fails even though it:

Experiences great demand for its products or services;
Is profitable;
Has a promising future.

Sometimes the failure results from a cash-flow crisis. This happens when:

Rapid growth ties up cash to finance accounts receivable or inventory;
Accounts receivable or inventory are not managed properly;
A company is not focused on or managing its cash flow;
There’s a significant decline in business.

A successful company needs sufficient cash to:

Meet its capital equipment needs;
Provide adequate working capital for receivables and inventory;
Finance research;
Provide for company expansion and development;
Withstand downturns in its business.

Your AZSBDC Business Analyst Can Work With You To:

Financing Alternatives

Discuss with you the advantages and disadvantages of equity versus debt financing;
Determine the likelihood of succeeding in attracting types of financing;
Review with you the guidelines that a lender or investor typically considers when making a financing decision.

Business Loans

Identify lenders who are most likely to accommodate your business’s stage of development and specific situation;
Define your actual need for financing;
Assess your ability to repay a loan;
Make a loan application, including guidance in preparing your business plan and presenting your case to the bank or lender;
Ensure that you have adequate control over your expenses and cash flow so that the lender has maximum assurance of getting repaid.

Equity Financing

Identify sources of investment;
Understand the features, advantages and disadvantages of each;
Prepare financial plans and forecasts;
Better define your need for financing;
Create a written business plan that clearly explains your business opportunity;
Prepare your presentation to potential investors.

Technology Transfer

Help you identify and apply for research grants, including the Small Business Innovation Research (SBIR) grants and the Small Business Technology Transfer Research (STTR) grants.

Cash Flow Forecasting

Help you prepare a cash flow forecast that identifies potential shortfalls and surpluses so that you can plan and react in a timely way.

Cash Flow Management

Review your operations and offer suggestions to improve your business’s cash flow.

Accounting and Reporting

Decide which is better: keeping records in-house, or hiring an outside bookkeeper or accountant to publish financial statements and prepare tax returns;
Get training in accounting and accounting systems if you wish to do the task internally.

Financial Planning

Provide you with financial planning templates to help you design and create a short-term (12 months) or long-term (three to five years) plan to:

Set your business’s own course of growth and operation;
Set financial targets;
Test financial scenarios;
Identify the need for contingency plans.

Budgeting

Help you set up a process for developing and reviewing a budget that includes planned or expected revenue, cost and expense data detailed for each department and month; provides a control tool to monitor results and take corrective action to keep the company on track; and creates accountability on every level of the organization as department managers create their portions of the budget.