Understanding Cash Flow

Cash flow involves money going in and out of business (on a regular basis). This is often a hard task, because it is often ignored. It is almost as if we go into business wishing and hoping our business makes money. In reality it takes careful planning, hard work and making the hard decisions.

How much cash do you currently have in your business? How much is owed to you (accounts receivable)? How much is overdue? How many accounts is 60 or do days past due? If you don't know this information you could be in serious trouble and not even know it.

How much do you owe? Are your expenses higher than your revenue? If so it's time to make more money and cut expenses. Small business owners often have expenses that are way too high. Expenses should be monitored regularly. Here are some tips to help improve your cash flow:

· Pay your bills on time.
· Get a line of credit before you need it.
· Use credit wisely.
· Don't waste money on inventory you won't need for weeks or month from now.
· Rent a space out to someone else in your store or office or warehouse and add this to your cash flow.
· Upsell and cross sell every customer.
In my opinion cash flow is one of the keys to your business success. It is one that is often overlooked. New Business Owners often go into business without enough money to stay in business (or market their business) or on the other extreme buying expensive equipment or things you don't need. Cash flow management requires careful attention, monitoring and constant scrutiny of each and every expense.


This is often a hard task, because it is often ignored. It is almost as if we go into business wishing and hoping our business makes money. In reality it takes careful planning, hard work and making the right decisions.How much cash do you currently have in your business? How much is owed to you (accounts receivable)? How much is overdue? How many accounts is 60 or do days past due? If you don't know this information you could be in serious trouble and not even know it.

How much do you owe? Are your expenses higher than your revenue? If so it's time to make more money and cut expenses. Small business owners often have expenses that are way too high. Expenses should be monitored regularly. Here are some tips to help improve your cash flow:

Pay your bills on time.
Get a line of credit before you need it.
Use credit wisely.
Don't waste money on inventory you won't need for weeks or month from now.
Rent a space out to someone else in your store or office or warehouse and add this to your cash flow.
Upsell and cross sell every customer.
In my opinion cash flow is one of the keys to your business success. It is one that is often overlooked. New Business Owners often go into business without enough money to stay in business (or market their business) or on the other extreme buying expensive equipment or things you don't need. Cash flow management requires careful attention, monitoring and constant scrutiny of each and every expense.