10 Ways to Reduce Cash Flow Stress
Do you dread month end payments?
Like many small to medium sized business owners, do you dread the approach of your 30 day payments flowing out at the end of the month?
The old adage that “cash flow is king” has never been more relevant than in the current South Australian economic climate. Every small to medium sized enterprise needs strong cash flow to operate efficiently and to enable the owner-manager to focus on running and growing their business. However, not all have good cash flow and this is frequently the key concern keeping SME owners and managers awake at night.
The premise of having a good cash flow is relatively simple. Sell a product or service for more than it costs you, ensuring you get paid and you pay your suppliers on time. Any surplus cash can then be reinvested wisely back into the business to generate further future cash flows.
The ability to generate a positive cash flow year after year is essential for a business to be viable over the long term. Unless both profitable and generating surplus cash on a sustainable basis, it is impossible to successfully support and grow a business. Some will blame inadequate cash flow as the cause for business problems, but this is often not the cause. The management of cash flow is the problem. Click here to read the full article by Garry Dando from The CFO Centre.