To the blog for small and medium sized business (SME) owners.

Tuesday, September 11, 2007

The 7 Golden Rules of Business Cash Flow

Manage your Business Cash Flow.  For tips, advice and how tos visit www.smebusinesscashflow.com
There are many aspects impacting on your business cash flow. However always remember CASH is the lifeblood of your business and every effort should be made to protect your business cash flow.

The 7 golden rules to adopt in control of your cash are:
1 Know your Cash Balance at all times
Sounds obvious but not always actioned by business owners

2 Forecast your Future Cash Flows
Maintain a rolling forecast of your future business cash flow and measure actual results against the forecast and understand reasons for any variance from plan.

3 Take action
Corrective actions should be taken, if possible, to eliminate any variation from forecast.

4. Arrange finance
Do not overstretch your cash position through non financing of capital items

5. Rent not Buy
Do not buy if a renting option is available

6. Manage Your Overheads
Do not waste your cash resource through overspending on overheads. Use immediately what you buy, do not tolerate slow moving materials.

7. Manage your Receivables
Be proactive and avoid slow payers and bad debts.

1 comment:

Anonymous said...

very wise advice...

James Rock