When it comes to properly managing the cash flow of your business, the best way to move from where you are now, to where you want to be, is to get a clear picture in your mind of the benefits you will enjoy as you take control of your cash flow.
A few of these benefits include:
- Increasing the likelihood that your business never runs out of cash;
- Eliminating the constant worry associated with not knowing what your cash balance is right now or what you expect it to be in the near future;
- Improved relationships with your vendors because they are no longer banging on your door demanding that their past due invoices be paid immediately.
- The ability to see cash flow problems long before they can happen.
- Freedom from worry, doubt, and concern.
In short, you free yourself to focus your unique talents and abilities on growing your business rather than fighting the constant cash flow fires.
This is the first part of a three-part series in which we will examine 10 cash flow rules you can implement immediately that will transform the way you manage your business from this point forward. These rules are the keys to creating the kind of financially successful business you deserve.
1. Never Run Out of Cash.
Running out of cash is the definition of failure in business. Make the commitment to do what it takes so it does not happen to you. Make sure you have back up, like a sufficient line of credit.
2. Cash Is King
It’s important to recognize that cash is what keeps your business alive. Manage it with the care and attention it deserves. It’s very unforgiving if you don’t. Remember, Cash Is King, because No Cash = No Business.
3. Know the Cash Balance Right Now.
What is your cash balance right now? It’s absolutely critical that you know exactly what your cash balance is. Even the most intelligent and experienced person will fail if they are making business decisions using inaccurate or incomplete cash balances. That’s the reason why business failures are not limited to amateurs or people new to the business world.
Next time we will examine 3 more cash management rules. It is so essential that you implement some cash management procedures in your business. The more you manage cash, the more you can count on success.