Decisions Small Business Will Face in 2005 Essay -- essays research pa

What are some of the important financial decisions that small business owner will face in 2005? There are numerous issues much(prenominal) raising capital, accounting and bookkeeping, cash flow management, poor inventory management, all over investments in fixed assets, poor credit arrangements, unexpected growth, and other frugal factors that will affect a small businesss finances. The U.S. keen Business Administ balancen has seen lots of small businesses com and, unfortunately, go. According to the SBA, over 50% of small businesses reveal in the first year and 95% fail within the first five years (Why Small Businesses go away, 2005, p. 1). With this fact in mind, one should seriously consider discovering a constitutional understanding of finances and the effects it will have on their businesses. In dealing with raising capital, one should consider how important his/her credit compose is to the loan equation. A small business should always strive to vex in good standing with all creditors, not only to gain favorable credit, but sometimes to gain cost cutting deals from salutary being a good customer which ultimately affects profits/losses. Debt-to-Income ratio is another important factor in raising capital. If your business has a high debt ratio, then you become a high risk investment. The about important issue in raising capital is if your request for pecuniary resource logical and thoroughly justified. Lenders are in the business to make a profit, theref...