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You may want to learn what makes up a monthly cash flow statement, which can easily be printed from any accounting application.
Be careful about taking long-term bank loans to support the growth of the business if the company has not yet optimized for cash flow from its current sales.
What does your cash flow plan look like for your business?
If a company can get paid in advance or with a credit card, they may be able to boost cash flow.
The sooner a customer pays, the higher the cash flow.
often means simply paying an insurance premium in installments rather than all at once.
For example, car insurance premiums are often assessed once every six months.
In 1992 I started my third business after failing in two others. It read, “It's cash flow, stupid.” My sign referenced a far more famous sign—"It's the economy, stupid"—that was reportedly hung by a former president's campaign manager that same year.
(It was a reminder that the economy was the issue they were running on.) This sign became my daily reminder and mantra, and having a cash flow plan was critical to my success.
Cash can be the gasoline that makes a business engine work and keeps your company moving forward.
If you don't already have one for your business, the following tips may help you create a cash flow plan.