samedi 2 novembre 2013

Inventory and Cash Flow Management

Hi All,



First post here =) My wife and I inherited a jewelry store from her parents a few years ago. We are always caught in a position where we are short on cash - always. And when the cash at the store is short, we start dipping into our personal funds which slowly takes its toll on us as well. Some of the reasons why we are always short on cash is because:



- when customers come in to sell gold, we can't turn them down due to the spread we make (ie: its profitable)

- when we purchase inventory, it's hard to say No to many items b/c if we don't carry it, someone else will and they'll make the sale if we can't provide the products.



We will be in a position to apply for a small business loan in January and are hoping that'll help free up cash, but are still unsure. Our goal is to find a way extract cash from the business and buy real estate (ie diversify our funds). It's worth to mention we withdraw $6,000 - $8,000 per month and deposit that into our personal accounts as a salary.



To summarize, the problem here is the business account and the personal accounts are always short on cash due to money being spent on inventory. Although the inventory is always growing and we're asset rich, we're cash poor. Please help - thank you all.





via Small-Business-Forum.net http://www.small-business-forum.net/managing-your-business/10124-inventory-cash-flow-management.html

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