As small businesses across America continue to thrive, many could boost their efficiency by incorporating a cash counter into their operations.
Over the past few years, small-business owners have worked hard to keep their companies profitable. Their efforts have largely paid off. Many small businesses are expanding and enjoying increased profits.
A record number of closed business transactions were carried out during the first quarter of 2017, according to data collected by BizBuySell.com, an online marketplace for entrepreneurs looking to buy or sell a business. A total of 2,368 transactions occurred, a 29 percent increase over the first quarter of 2016.
Not only were more businesses sold, but they also brought in more revenue. Median cash flow in the first three months of the year increased from $110,000 in 2016 to $117,275 in 2017. Over the past decade, BizBuySell.com has never seen median cash flow reach this level.
"After a record-setting year of small business transactions, it's great to see continued small business growth in early 2017," Bob House, president of BizBuySell.com, said in a report. "Not only are more small businesses changing hands, but healthy financials are positioning these new owners for continued success."
The U.S. Small Business Administration reported that hiring and exports were also up for small businesses. Of the 304,466 companies that exported goods from the U.S. in 2014, the most recent year for available data, 97.7 percent were small firms. This brought in roughly $467 billion, or about one-third of the revenue generated by U.S. exports. That same year, small businesses added a net of 1.4 million new jobs and employed nearly half of the U.S. workforce.
In addition to increasing exports and employees, small businesses have been raking in the profits. An analysis by financial information company Sageworks found that companies with less than $5 million in yearly revenue saw 7.8 percent sales growth during 2015, Forbes contributor Mary Ellen Biery reported. Further, these businesses' net profit margin increased from 6.4 percent the year before to 7.5 percent in 2015.
When a business grows, it's important the owner is prepared to overcome new obstacles. Having systems in place to manage funds is crucial for growing businesses. A cash counter makes tallying up a day's earnings easier, faster and eliminates the potential for human error miscounting a bill.
June 9, 2017