“We WILL be there with you every step of the way.”ย
- Analyze Cash Every Week:ย Each week, check your cash balances and how your expected inflows and outflows of cash compare to your projection in your cash flow projection.
- Monitor your Customer Balances:ย It is easy to fall short in the management of your Accounts Receivable (money owed to you from customers). Always use a software system to track who owes you money so that you can follow up with customers and send invoices and statements.
- Send Invoices Far in Advance.ย Make sure you send your invoices far in advance. If you donโt give your customers enough notice, youโre practically asking for late payments. Also, track all outstanding invoices, and have a system in place for credit guidelines and follow-ups.
- Understand What Each Dollar Gets You.ย For example, you might spend thousands of dollars getting booths at trade shows or hosting industry events and assume a certain return, but this estimation is unscientific and often inaccurate.
- Practice Smart Inventory Management.ย Early-stage companies often overlook proper inventory management. While itโs important to ensure sufficient supply, startups tend to overstock or pick the cheapest transportation options, which can actually be more expensive once you take idle inventory costs into account. Another option to improve your inventory management while reducing your idle inventory is to speak to banks that offer inventory financing so you donโt have to tie up cash.
Managing cash is a full time job – but one well worth the effort.
Follow Us on Social Media
Where do you go for answers?
Our Learning Community is the one stop shop for the intelligence you need. Instead of countless hours searching for answers, we’ve organized what you need to know across all of the business and personal issues you face. You’ll get knowledge, ongoing support, weekly live coaching sessions, tools and templates, vendor reviews and a vibrant community of your fellow entrepreneurs. All that for only $99/month! Join today!