Cash flow is the lifeblood of all businesses. Learn the Cash Flow
101 Rules to free yourself from money worries. Use the basic rules
of Cash Flow 101 to help you take control of your cash flow so you
can create the business you have always dreamed of.
1. Never Run Out of Cash. Running
out of cash is the definition of failure in business. Make the
commitment to do what it takes so it doesn't happen to you.
2. Cash Is King. It's
important to recognize that the basics of cash flow 101 are what
keeps your business alive. Manage it with the care and attention it
deserves. It's very unforgiving if you don't. Remember, cash is
king, because no cash means no business.
3. Know the Cash Balance Now.
What is your cash balance right now? It's absolutely critical that
you know exactly what your cash balance is.
Even the most experienced person will fail if they are making
business decisions using inaccurate or incomplete cash balances.
This is fundamental cash flow 101. That's the reason why business
failures are not limited to amateurs or people new to the business
world.
4. Do Today's Work Today. The
key to keeping an accurate cash balance in your accounting system is
to do today's work today. When you do this, you will have the
numbers you need - when you need them.
5. Do the Work or Get Someone Else.
Here is a simple rule to follow to make sure you have an accurate
cash balance on your books. You do the work or have someone else do
it.
6. Don't Manage From the Bank Balance.
The bank balance and the cash balance are two different forms of
cash. Rarely will the two ever be the same. Don't make the mistake
of confusing them.
It's futile and frustrating to attempt to manage your cash flow
using the bank balance. It's a prescription for failure. You
reconcile your bank balance. You don't manage from it.
7. Know Your Six Months Cash Balance.
What do you expect your cash balance to be six months from now? This
one question will transform the way you manage your business and
help you pass cash flow 101.
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 amazed at the number of small 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. 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. Take Care of Customers.
Eliminate your cash flow worries so you are free to do what you do
best-taking care of clients and making more money. Use these cash
flow 101 rules to free yourself from cash flow worries. That way you
can focus all your time and talents where you can make the most
difference in your business.
No more wasted time worrying about what's going on with your cash
flow. Instead, you can focus your unique talents and abilities each
day on ways to grow your business and make more income each year.
That is a recipe for success and wealth creation.
R