In the last several weeks we have been examining the 10 Rules of Cash Flow Management. Here are the final four rules.
7. Know What You Expect the Cash Balance to be Six Months From Now.
What do you expect your cash balance to be six months from now? This one question will transform the way you manage your business. This question really gets to the heart of whether you are managing your business or whether your business is managing you.
8. Cash Flow Problems Don’t “Just Happen.”
You would be shocked and amazed at the number of businesses that fail because the owner did not see a cash flow problem in time to do something about it. The key is to always be able to answer the question – What do I expect my cash balance to be six months from now?
9. You Absolutely, Positively Must Have Cash Flow Projections.
Cash flow projections are the key to making wise and profitable business decisions. They give you the answer to the all-important question from Rule # 7. It’s impossible to run your business properly without them.
10. Eliminate Your Cash Flow Worries So You Are Free to Do What You Do Best – Take Care of Customers and Make More Money.
This is the real key to your success in business. The reason you have to make sure you have your business’s cash flow under control is so you are free to focus all your time and talents where you can make the most difference in your business.
When you have your cash flow under control, you are free from worry, doubt and concern. You have the cash flow information you need to make sure that everything you do each day in your business is clearly focused on making your business better. You will enjoy the benefits of successful cash flow management. You have the information you need to measure your progress using the amount of cash you generate (and keep) for yourself and your business as your ultimate financial measurement. If managing your cash flow seems overwhelming, get professional help. Work with someone who understands how cash flows through your business, and how best to maximize its management.