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

Monday, September 17, 2007

Control of Working Capital in Small Business

The importance of controlling working capital becomes evident to many business owners only when cash flow is negative and little or no cash is freely available to sustain day to day operations.

To address this situation the reaction may include the robust chasing of all receivable overdues and the delaying of payment to creditors for as long as possible. Work to perhaps reduce inventory levels may be undertaken, but this may not immediately reflect in improving the cash position.

The SME business owner should take steps to safe guard the business position. Plan to avoid cash flow shortages and implement those plans. If the work is outside the skill set of the small business owner - seek professional help and protect your business.

Related Topics
The Benefits of Using a part time FD
Manage your Cash

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