It’s critical to understand how to manage your business cash flow because it has a big impact on your daily operations. First, stay organized and know where every receipt, bank statement, and invoice is electronically stored, so that you are on top of how much money is on the line at all times. Next, stay focused on your monthly net income. Know to the penny how much revenue is needed to break even every single month. With that information in mind, you can align your cash flow goals. Become a pro at negotiating contracts. Build in progression payments based on achieving specified benchmarks, so that you receive some money while the project is in process.
Key Takeaways:
- I learned early in business that cash flow is king, and so must owners, especially those with growing businesses.
- Good cash-flow management practices include meticulous accounting, monthly tracking, attention to collections and payables, asset disposal, and good contracting.
- You should also closely scrutinize new expenses and consider options to reduce cost and boost cash flow.
“You must learn quickly that metrics like profits, sales, or net worth don’t impact the day-to-day operations of a company as strongly as cash flow does”
Read more: https://succeedasyourownboss.com/10-ways-manage-cash-flow-business-grows/