Advice Pool - Business

Small business owners don’t need to hope for miracles to solve their cash flow problems, according to accountant Caroline Jordan, a business

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

coach and author of the new paperback book, Stop the Cash Flow Roller Coaster, I Want to Get Off! “Small business owners have more control

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

over their cash flow than they realize,” says Jordan.

Based on financial rescue missions and cash flow makeovers she has performed for scor

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

s of struggling small business owners, Jordan suggests seven techniques that have an immediate and long-term impact in improving cash flow.

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

1. Avoid the common but deadly “Fly by the Seat of Your Pants” accounting method. Businesses need to systematically track income, expenses,

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

accounts receivable, and accounts payable. If you know how your business is doing just once a year at tax time, you’re bound to end up deepl

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

y mired in the Cash Flow Swamp.

2. Developing “Strength in Numbers.” Once you have your accounting system in place, you need to learn what

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

the numbers tell you and how to use those numbers to manage and grow your business.

3. Keep tight control of credit. Business owners can l

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

nd themselves in credit trouble in two ways: granting credit to problem customers of theirs and misusing credit they receive from banks, cr

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

dit cards, and vendors.

4. Be sure Receivables and Payables “play nice” together. The money owed to you by your customers needs to arrive

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

n time for you to pay your vendors and your employees. When your customers take 60 days to pay and your vendors demand payment within 30 day

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

s, you can quickly end up in a cash flow crunch.

5. Make decisions based on cash flow, not just profit. Many businesses that fail are prof

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

table when the doors close. What those businesses are missing is cash. When you pursue that big, juicy contract or think about hiring anothe

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

employee, always ask yourself, “What will this do to my cash flow?”

6. Don’t forget your debt to society. Some bills are easy to forget…

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

ike sales tax, payroll taxes, and estimated taxes. Ignoring them doesn’t make them go away. Planning ahead makes the tax bite easier to mana

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

e and keeps you from suffering Tax Day sticker shock. Scrambling to find money for taxes causes major cash flow problems.

7. Don’t spend yo

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

ur company’s future on a speedboat. Everybody loves toys. Just don’t make the mistake of considering all the profits of your business as “

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

un money.” You’ve undoubtedly heard personal financial planners say that you should have enough cash set aside for six months of expenses.

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

his is true for your business, too. Sales ebb and flow. Expenses rise. Customers leave. Vehicles break down. Computers fry. The number

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

one rule of small business is “Stuff Happens!” Having a reserve of cash keeps your cash flow from tanking every time a new challenge appears

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Advice Pool - New Book Combats Small Business Cash Flow Problems With Stress-Saving Strategies

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