The Best Kept Secret to Running a Sustainable Business
The current economy has led many in the industry to keep their operations tight and lean. Part of running a successful (and sustainable) business is ramping up efforts to managing the cash flow of your business. Here are four quick tips to help you with this best kept secret:
1) Plan. Create forecast projections frequently in order to plan your business’s cash requirements.
2) Monitor. Create a system to monitor cash flows regularly, weekly and monthly. Then compare your estimates to your actuals for insight on the accuracy of your projections.
3) Invoicing and collections. The policies and procedures for managing receivables can impact your inflows. Having funds that are due to you sitting in your customers’ bank accounts will not help your cash flow.
4) Payments to vendors. Your policies and procedures for managing payables can impact your outflows. Pay your bills on time, but not before they are due.
Want more? Check out CEDIA’s new series on “Cash Flow Management.”