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Baal-zebub · Site Admin Joined: 01 Jan 1970 Posts: 124

Every business owner likes to write the big dollar order; the big dollar sale. Every small business owner wants top dollar for her product or service.

But is price the most important consideration?

Every sale and every deal has price as one of the components. But it is not the only measure. And may not be the best for your small business.

Cash flow is the best measure.

In your deal making, also look for terms that speed the cash coming into your small business. One dollar today may be worth 10 dollars next year.

<a href="http://www.entrepreneur.com/article/0,4621,312291,00.html">Entrepreneur.com</a> reminds us that,

<blockquote>Sooner or later, you will foresee or find yourself in a situation where you lack the cash to pay your bills. This doesn't mean you're a failure as a businessperson—you're a normal entrepreneur who can't perfectly predict the future. And there are normal, everyday business practices that can help you manage the shortfall.

The key to managing cash shortfalls is to become aware of the problem as early and as accurately as possible. Banks are wary of borrowers who have to have money today. They'd much prefer lending to you before you need it, preferably months before. When the reason you are caught short is that you failed to plan, a banker is not going to be very interested in helping you out.</blockquote> 

Watching the terms of the deal can help avoid this problem. Cash flow may be more important than the sale price. 

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