Alexandra Levits Water Cooler Wisdom Can You Balance Multiple Gigs

Alexandra Levit's Water Cooler Wisdom Can You Balance Multiple Gigs Its easy to understand why entrepreneurs start multiple businesses. Taking risks and innovating are in their blood. However, even the savviest entrepreneur is human, and we can only focus our energy and resources in so many directions before our cash flow takes a hit. Lets explore some tips for getting promising new enterprises off the ground while keeping a watchful eye on the business that currently earns you money! 1. Manage your cash flow. If you need to put aside money for a side business, its important that you appropriately navigatecash flowin your main business. Ensure that you have acash-flow-management planin place, and review all of your accounts at least once a month so that you can optimize your spending in real time. Its risky to funnel main business funds into side businesses because if the main business experiences an emergency or setback, youll need a parachute. You may want to consider using small business loans to help cushion your businesses. 2. Mind your working capital. Working capitalis the difference between a business current assets (cash, accounts receivable and inventories) and its current liabilities (accounts payable). Your amount of working capital reflects your business financial health and operational efficiencies. Ideally, both your main business and side businesses should have strong working capital at all times. Work with a human professional as well as accounting software to gain an immediate, up-to-date and accurate picture of your working capital. If you need to infuse a side hustle with capital, plan for the fact that some sourcesâ€"such as small business loansâ€"take time. For the rest of the piece, check out the AMEX Business site.