10 Absolutely Must-Follow Cash Flow Rules
Posted on November 23rd, 2008
The best way to get to where you want to be is to get a clear picture in your mind of the benefits you will enjoy as you take control of your cash flow.
Focus on your unique talents and skills rather than fighting the constant cash flow fires.
These are 10 Absolutely Must-Follow Cash Flow Rules that can transform the way you manage your business:
1· Running out of cash is a big NO! It simply means that your business failed. Make a commitment so it does not happen to you.
2· Money is the overall head. No money equals to no business. It is significant to recognize that the money is what keeps your business alive. Manage it with care and provide necessary attention that it deserves.
3· Be aware with your cash balance. It is critical that you know exactly what you cash balance is. Failing to make business decisions using inaccurate or insufficient cash balances will make the business failed. That is why business is not limited to amateurs or rookie to the business world.
4· Visualize what will happen to your cash balance at least 6 months from now. It is one way to transform the way you manage your business and really gets to the heart of whether you are managing your
business or whether your business is managing you.
5· Problems regarding cash flow do not just happen. The key is to be able to answer the question of what did you expect to your cash balance 6 months from now, many business have failed because owners didn’t see the cash flow problem.
6· Do not Procrastinate. Do today’s work today, that is the key to keeping an accurate cash balance in your accounting system.
7· You do the work or have someone else do it for you. A simple rule to follow to make sure you have an accurate cash flow. As long the work needs to be done, it either you or someone else will do it.
8· Do not manage from the bank balance. Bank and cash balance are entirely different. Attempting to manage your cash flow using you bank balance is a clear sign of failure.
9· Have a positive cash flow projections. It is the key to making wise and profitable business decisions. This gives an answer to an all-important question from the 7th rule and it is impossible to run a proper business without it.
10. Eliminate your cash flow worries. The real key to your business success, by eliminating you worries, you are free to do what you do best and can take care of your customers thus, making more money. You need to focus on the business and not on its problems. That is why cash flow control is very important in business.
These are the keys to achieving the kind of financially successful business you deserve.
