There’s a saying in business – “Cash is king”. And there’s a good reason for that – without a steady flow of cash through a business, it won’t have the funds it needs to stay afloat.
What it comes down to is managing and improving cash flow.
Small businesses exist to make money. But they wonâ€™t be as profitable as they can be if the business owners arenâ€™t managing their cash flow effectively.
Most first-time business owners will, at some point, need some help managing and improving their cash flow. And if their bank is on hand to provide that assistance, so much the better â€“ if problems can be resolved, itâ€™s a win-win situation.
It might not be a first-time business owner either â€“ banks are also likely to be approached by those experience in business whoâ€™ve completed a cash flow forecast and have realised theyâ€™re going to need the bankâ€™s assistance.
Shortening cash cycles, reassessing costs and pricing and managing debt are all business elements owners should have a good grip on, so that they can improve their cash flow. Learning how to conduct a cash flow forecast is also an essential skill.
The below podcast has further ideas on how small businesses can improve their cash flow situation.
Read the full article at: www.biggerpockets.com