The battle for steady cash flows is the true fight for freedom for the modern entrepreneur. How can one be sure to come out on the winning side of the fight?

The first step is to find a way to build up a business reserve fund. Designate this money as a lean times fund, and make contributing to this a regular part of the business budget. Having a reserve fund can help cover critical expenses in the event of a downturn, client cancellation, or unexpected illness.

The second step is to enhance back end sales relationships. Since it costs more to acquire new customers than it does to service existing customers, a set of back end products can stabilize income levels while simultaneously improving profitability. Accessories, informational products, or even updated versions of front end products are all worthy back end catalogue members.

A final step is establishing limits for discounts. What can be offered promotionally to gin up business, and what is sacrosanct? Answering this question can bring clarity on what promotions are permissible and what areas just don’t have pricing flexibility. This helps manage profitability and ensures that no unintentional undercutting of cash flow through discounts occurs.

For entrepreneurs, keeping good cash flows is critical to winning the fight for freedom, even in tight economic times. By building up a business reserve fund, creating a strong back end catalogue, and critically examining pricing flexibility, it is possible to ensure ending up on the right side of the battle line and staying in business.

Some friendly guy advice: don’t be afraid to be an entrepreneur in whatever it is that you do. What does an entrepreneur do? The definition states that this person “organizes a business venture and assumes the risk for it.” Since the entrepreneur is competitive and struggling for survival, he has no choice but to think outside the box. He must consider the short-term and long-term reality of every business decision. Assuming responsibility for a new business puts you in a managerial position.

You may already have many good ideas on business and “if you only had…” then you could put them into practice. An entrepreneur doesn’t waste time wishing. He takes chances and innovates, regardless of setting. If you have such brilliant ideas floating around in your head, then let them out. Start talking to people about your schemes and dreams. Open a small Internet store and test the market. You never really know how good an idea is until you put it out there. This is what entrepreneurship really means at its core: the drive to win.

Some entrepreneurs predict their future years before they have enough money to get started. Why not start working on cash flow sheets right now? Why not write a rough draft business plan? Why not create a list of expenses and projected income? Remember, you can always be an entrepreneur at heart and wait for the world to catch up with you. You can make more money, regardless of a recession, if you have the entrepreneurial spirit.