| Money is the blood line of any business. It | | | | you get some one else to do it. Either way, |
| is a fact that over 90% of businesses go out | | | | make sure that what needs to be done, is |
| of business within the first year and the | | | | being done by some one. |
| reason is inadequate cash flow. Go figure! | | | | |
| So what are the pitfalls to avoid and | | | | 6. Bank is not equal to Cash |
| measures to take? Have a look below:- | | | | |
| | | | Your heading for big trouble if your managing |
| 1. Never run out of cash | | | | from your bank balance. Cash balance is not |
| | | | the same as bank balance which may have |
| Failure in business is simply running out of | | | | uncleared checks, pending transactions and a |
| cash. Make sure this doesn't happen to you by | | | | host of other things. |
| keeping extra reserves locked away for down | | | | |
| periods. | | | | 7. Look 6 months in to the Future |
| | | | |
| 2. Cash is King | | | | You should know what your cash balance is |
| | | | likely to be 6 months in to the future. That |
| Remember what you are in business for (to | | | | given you are well on your way to |
| make money) and respect that fact by giving | | | | understanding the health of your business. |
| it the care and attention it deserves. For | | | | Therefore, if ever down, you will have plenty |
| if you don't it will return the favor. | | | | of notice to correct it before it is too |
| | | | late. |
| 3. Know your Cash Position | | | | |
| | | | 8. Projections are a Must |
| Too many people make wrong decisions because | | | | |
| of the fact that they don't know the facts of | | | | Cash flow problems don't just happen. They |
| their business. Don't let this happen to | | | | are reached slowly and the signs are always |
| you. You must know exactly what you have in | | | | there if some one is looking carefully. So |
| the bank at this very moment to ensure you | | | | make sure you are looking at the signs so you |
| make well informed decisions. | | | | are prepared well in time. |
| | | | |
| 4. Complete Today's Work TODAY | | | | 9. Eliminate Concern |
| | | | |
| The only way to keep an up to date | | | | If you are always worrying about your cash |
| information system regarding your cash flow | | | | flow then you are not concentrating on your |
| is to ensure that today's work gets done | | | | business as much as you should. Make sure to |
| today. Otherwise you will be making | | | | eliminate all cash flow worries and focus |
| decisions on historical data, which is also | | | | your time on growing your business. |
| incomplete. | | | | |
| | | | Adam Heist is writer for the loans website, a |
| 5. Do it or Delegate it | | | | new trend called firstnational mortgages ltd |
| | | | website has been stirring up quite a |
| The only way to make sure work gets done is | | | | commotion. Visit ustoday to find out why. |
| either to do it yourself or to make sure that | | | | |