Cash Flow Management

Filed in archive Management on September 27, 2006

Forbes has a great article for small business owners, "If You Manage Nothing Else" with three tips on managing the cash flow in your business including 1) Get access to short-term credit. 2) Prepare realistic monthly forecasts. 3) Make a Personal budget.

"Making money" is one thing, but generating cash is quite another. Certainly you'd like to boast more revenues than expenses in a given period. Yet for a host of accounting reasons, you can show positive earnings on your income statement but be draining cash at the same time. Via Forbes "If You Manage Nothing Else"

If you are a services business answering the question "How Do I Set A Profitable Hourly Rate To Charge For My Services?" is important because most service businesses charge an hourly rate and coming up with the right selling price for your service business is essential if you want to be profitable.

However, like the Forbes article states, if you do not have a budget and control your spending you will still bleed cash and end up with a crisis on your hands.