Everyone knows you have to properly manage the cash flow of your business to reap the benefits and rewards. But sometimes, it can be easier said than done. Instead of worrying about making the best decision and constantly “fighting the cash flow fires,” you should be using the unique ideas you have to advance your business to eliminate the possibility of a fire at all.
Inc.’s 10 Absolutely Must-Follow Cash Flow Rules are 10 rules for less worry, doubt or concern about your organization. Implement them immediately to manage the way you do business to the best of your ability.
1. Never run out of Cash: Commit with your all to the work it takes to ensure this doesn’t happen to you.
2. Cash is King: Cash is what keeps your business alive. Give it the attention it deserves.
3. Know the Cash Balance right now: With inaccurate information, even the most experienced of people could make a business decision that impacts negatively.
4. Do Today’s Work Today.
5. Either You do the Work or Have Someone Else Do it. You just have to get the work done, so those are the only choices you have.
6. Don’t Manage from the Bank Balance: You reconcile your bank balance. You don’t manage from it.
7. Know What you Expect the Cash Balance to be Six Months from Now: This answers the question: do you manage your business, or does your business manage you? Use the necessary tools to forecast out this information and take advantage.
8. Cash Flow Problems Don’t “Just Happen”: Always know the answer to #7. You would be surprised at how many failed-business owners had no idea there was a cash flow problem in time to fix it.
9. You Absolutely, Positively, Must have Cash Flow Projections: They answer all of the important questions from the above rules.
10. Eliminate Your Cash Flow Worries!: Be free to do what you do best– take care of customers and make more money. Efficiency is the real key to success in business. You don’t want to be worrying about cash flow and ignoring what you should spend the most time on. Always focus on making your business better and use your talents to do what you are best at.