(from my b³ newsletter August 2013)
Understanding and managing your cashflow well are likely to be some of the most valuable, yet simplest business management activities you undertake.
Cashflow, contrary to popular belief, is easy to understand: it’s simply the change to the business’s cash in the bank, up or down, after your customers have paid you and you have paid your suppliers.
Obviously, the best position is that it goes up every month.
However, this is not always the case, and so forecasting your cashflow, by keeping a close eye on when your customers are going to pay you and when you will be paying your suppliers, will help you to identify when there will be more cash is available to the business and when there may be less.
You can simply adjust your business spending accordingly.
Needless to say, understanding such simple things, and managing it carefully, can have a hugely positive impact on the chances of business survival and success.
So give it a go (if you’re not doing it already) – you may well be surprised what it tells you about your business!
To find out more about how I work with business executives, leaders and owners to maximise their potential and success, and the benefits of professional executive coaching and mentoring, particularly in developing leadership, strategy and growing a business, please contact me:
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© Adrian Malpass 2013-2017. All rights reserved.