Comment on Small-business Q&A: Manage cash flow, or pay the price

Small-business Q&A: Manage cash flow, or pay the price

When they don't make regular checks and forecasts, or ignore troubling trends, their businesses will break down because they don't have the resources to pay their bills. To boost inflows, consider asking customers for all or a substantial portion of their payment upfront or give discounts to those who pay promptly. Other tactics for keeping cash in the business include maintaining low inventories, leasing certain kinds of equipment instead of buying them outright, recycling and reusing supplies where possible, and evaluating your processes and procedures to make sure they're as efficient and cost-effective as possible Identifying these patterns also will help you project anticipated revenues and expenses months in advance, so you'll know when inflows and outflows are more likely to go out of balance, and can prepare accordingly.

 

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