edf40wrjww2CF_PaperMaster:Desc
You
may be in Mail Order, Direct Mail, or you may be a local
merchant with 150 employees; whichever, however or
whatever... you've got to know how to keep your business
alive during economic recessions. Anytime the cash flow in
a business, large or small, starts to tighten up, the money
management of that business has to be run as a "tight ship."
Some of the things you can and should do include
protecting yourself from expenditures made on sudden
impulse. We've all bought merchandise or services we
really didn't need simply because we were in the mood, or
perhaps in response to the flamboyancy of the advertising
or the persuasiveness of the salesperson. Then we sort of
"wake up" a couple of days later and find that we've
committed hundreds of dollars of business funds for an item
or service that's not essential to the success of our own
business, when really pressing items had been waiting for
those dollars. If you are incorporated, you can eliminate
these "impulse purchases" by including in your by-laws a
clause that states: "All purchasing decisions over (a certain
amount) are contingent upon approval by the board of
directors." This will force you to consider any "impulse
purchases" of considerable cost, and may even be a
reminder in the case of smaller purchases. If your business
is a partnership, you can state, when faced with a buying
decision, that all purchases are contingent upon the
approval of a third party. In reality, the third party can be
your partner, one of your department heads, or even one of
your suppliers. If your business is a sole proprietorship, you
don't have much to worry about really, because as a ...