Cashflow Series #1 – Five Principles For Keeping Cash Flowing
Managing your cashflow is an integral part of running your business. In this new series of blogs we will be providing some of our best tips and tricks!
Five Principles For Keeping Cash Flowing
There are five key principles to remember when looking at your cashflow
1. Without cash your business will not survive
Cash is the lifeblood of any business. In fact, very profitable business’ can and do fail because of poor cashflow.
2. You need to understand your key cashflow cashflow drivers
Key cashflow drivers are the business processes that affect your cashflow.
3. Managing cashflow is all about your business processes.
Processes such as how you order stock and pay for it, how you bill for your services and how you make sure you get paid by your customers.
4. Treating the symptoms of poor cashflow without fixing the underlying causes is time-consuming and frustrating.
Inadequate cashflow is a symptom of management problems in a business, NOT the cause. We’re going to work together to treat the underlying causes of poor cashflow.
5. You need to be prepared to make process changes.
In order to fix these underlying causes, you need to be willing to make the necessary changes to your processes. By making these changes, you will build a much better and more valuable business, as well as improve your cashflow.
We offer a Workshop around Cashflow Management and Making Sense of the Numbers. If you are wanting to help understand your Cashflow and how it impacts your business, check out our fact sheet here.