small business cash flow

Small Business Management – More on Cash flow Management

There must be something happening in the universe. No sooner had I written 2 posts at entry level on small business cashflow than I found this great article written by David Bracken in the UK stressing the importance of not overlooking cash flow management. Now I know I am not a lone wolf howling into the wind. In fact I consider this so important that I have reproduced nearly all of the article below.

Small Business Management – Cashflow

Successful entrepreneurs usually concentrate their efforts on three key areas: vision, people and cash. Much advice and attention is lavished on the exciting work of developing and articulating a vision for the business: the grand strategies for world domination, or on ideas for hiring, managing and motivating a great team. The boring numbers bit about managing cash-flow too often takes a back-seat. However, to succeed in business, you must first avoid failure, and all businesses fail in exactly the same way: they run out of cash.

By having an accurate forecast, you will be able to judge your expenditure carefully, manage your working capital and seek additional funding in good time. [Read more…]

In our last blog we looked at what is meant by cash flow. Here we have some reasons why cash flow is important to your small business.

Small Business Help – Why Cashflow is important

Cash flow enables you, the business owner, to plan for those times when sales are not steady. Building up a sufficient flow of cash to ensure your business is able to account for times of the month that expenses are higher than others can take time.

The interesting thing about cash flow is that we tend to not pay attention to it until suddenly we are behind on all payments and don’t know when the next sale will happen to cover the debts. [Read more…]