Financial stability is the key to the success of all businesses whether big or small. Experts believe that cash flow is critical but it is more important to have a firm grip over your finances. It is, therefore, pertinent to understand the financial challenges that every small business owner is bound to encounter. Do you think that you are well-equipped to handle such financial challenges and sustain your small business through financial instability? Let us explore some of the common small business financial concerns and their perfect solutions. 

Ram Duriseti Highlights Some Financial Issues & Their Solutions

Financial Concern: Inadequate Working Capital

For all businesses, their working capital acts chiefly as the lifeblood. Experts firmly believe and recommend that a responsible small business owner must necessarily have adequate working capital amounting to a minimum of roughly six months of all expenses relating to the running of the business. Without this amount in hand, business owners would not be having any breathing space for coming up with new products or acquiring new clients.

Perfect Solution: The most effective way of boosting your overall financial condition is by trying to reduce your expenses by about 20 percent and keep aside that amount every month for building your business’s working capital. If you are about to start a business make sure that you have sufficient funds.

Financial Concern: Pricing Is All Wrong

More often than not, small businesses end up mispricing their services or products. Business owners at times, add up expenses, and then consider adding on their margin. Experts like Ram Duriseti feel this might not be a good idea and might be a flop since the resulting price could prove to be quite different from the product’s real market value, disappointing potential customers. 

Perfect Solution: What is supposed to be your USP? Are you thinking in terms of offering mass-market products, low-cost products, or are you catering to a specific high-end niche? You need to do a market study and find out precisely the pricing of your competitors for similar services or products. Your prices must be competitive to attract new customers and retain existing ones.

Financial Concern: Poor Cash Flow Management

An organized bookkeeping habit seems like a boon to your small business. If you are poorly or inefficiently managing financial books, you are sure to be doomed. Businesses need effective cash flow management to grow and succeed. Sadly, most small and medium business owners seem to be incompetent record keepers. 

Perfect Solution: It is of pivotal importance to monitor your cash flow consistently so that you could learn well in advance precisely when you would need some money. You have access to numerous free templates, tools, cash flow calculators, and even paid apps for gaining a firmer grip over your business’s cash flow management. 

Financial Concern: Late Payments from Clients

A huge percentage of medium and small businesses are known to be victims of delayed payments from clients. If this goes on happening frequently, your business could be at risk of being closed down. It is of pivotal importance to come up with strict processes and policies for avoiding this issue.

Perfect Solution: Try your best to avoid providing business credit to your new clients. Ensure that all your clients have clearly understood your precise payment policies. You must focus on incentivizing early payments, providing multiple avenues for effective payment, and enforcing late payment penalties. 


Finances are responsible for the smooth running of your business. Hence, it is critical to be judicious in your business’s financial management right from the outset. You must keep tracking consistently your business’s cash flows for staying competitive.

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