"Cash is king" Cash flow is one of the biggest issues faced by businesses. Forecasting strategies can be the best way to keep any business out of a bind. Ever wonder why investors want to see a business plan? More importantly, well thought out financial forecasts to anticipate costs? Here are some tips to help with cash flow forecasting:
1. Forecasting - Sales forecasts, profit and loss forecast, and cash flow forecasts. By using forecasts and updating them on a weekly or monthly basis you patterns in cash flow can be uncovered.
2. Identifying and Solving Problems - Once you have started noticing patterns you can develop tactics to deal with cash flow problems. There are a variety of strategies a business can utilize when collecting from customers and controlling costs. Consider invoice management, alternative payment options, or credit insurance to help manage a problematic cash flow situation.
3. Growth - Growth can sometimes cause cash flow issues, even though it is supposed to be a good thing. paying suppliers, increased wages, and purchasing equipment can over commit a business to growth. Continuous investigation of business spending will help control cash flow issues and allow a business to grow.
What do you think?
The Base Team
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