In business there are times when you are on the top and sometimes you are in the bottom, times when you think twice whether you will still stand firm with the vision you have for your company. It is not easy for sure; it is stressing you out to the point where in most of the time you are upset of almost everything that comes in your way.
But hey, believe in the vision you have for your future and your workers future. It’s part of the game, its part of the business. Don’t just give up quickly without putting up a good fight.
The main reason why businesses are forcedly closed is because of the funds that have been used into something that did not go well for the company. And we do not want you to do the same mistake like others did in the past.
Here are some tips on how you can wisely use your business funds:
Cash flow is the fuel that keeps your business grows and run smoothly. Remember that!
- Create a cash flow budget
This helps you ensure that you can comfortably pay all the expenses and it enables you to manage your revenues and expenses proactively. It is very important to business that you keep the cash flow budget up-to-date and you have to make sure that it is transparent in your operating environment and your plans for the future of the business.
- Know the sensitivities in your cash flow
It is very important to pin down which items – such as amount, item, quantity, or the overheads that will have the most impact on your cash flow.
- Manage the credit you are extending to your clients or customers
Establishing effective credit policies is one of the important parts of the successful cash flow management.
- Keep your payables up-to-date
This is very important, regularly viewing your payables schedule determine how well you are keeping up with your credit obligations.
- Reduce expenses
Look for ways where you can cut in the business expenses, for example the marketing material you will use can cut this off without compromising the quality.
- Use credit effectively
One of the best credit facilities will depend on your company’s individual circumstances, business plans, and existing credit facilities.
- Put your company’s surplus cash flow to work
Assess how much money you need to set aside for emergency purposes. In order for you to do this review you company’s cash flow history. Any surplus in your cash flow can be used for future business expansion.
Remember, you need to be smart with your money. Having a reserve fund for unforeseen business expenses is the smart way to operate.