Originally published on www.igniteyourbiz.com
Managing the Cash in Your Business: It’s As Easy As 1, 2, 3!
Well, there actually are six steps, but the bottom line is that cash management IS easy. Even more than easy, it’s the most critical activity a business owner can do to ensure success.
As the owner of a multimillion-dollar business, I was overseeing cash flow every month, even with a very capable bookkeeper. I wanted to know exactly where we stood with our most important asset: our cash.
As a solo-preneur, I run a cash-flow report weekly, and because of the attention I place on watching that one critical number, I’m always ahead of my expenditures, and there are NEVER any surprises.
The reality for most business owners is that they ignore running cashflow reports. They presume they have no cash to worry about (big mistake), or they keep their cash flow in their heads (bigger mistake), or they just don’t see the need (huge mistake that can and will eventually take you under).
Here’s my definition of cash flow:
the amount of cash that is flowing into your business and out of your business. Each business must determine its own cash-flow cycle, which is how QUICKLY that cash flows in and then out.
Here are the 6 steps to manage cash flow. This approach will work for any business, with minor modifications based on your specific cash-flow cycle.
[Hover over the Infographic to learn the six steps to manage cash flow]
These 6 simple steps will continue to provide your company with the oxygen it needs to not only survive but thrive!
It really is this easy. And while I know business owners fundamentally understand this process, far too many ignore it until it is way too late.
Don’t be one of them. Get serious about managing your cash flow and start growing a successful business.
The goal of every business is to make a profit. Is your business leaking profits? Are you working harder but not seeing the results on your bottom line at the end of each month? If you need help answering any of these questions click the image below, and watch a free webinar with Alice Heiman and Laurie Taylor.