Cash flow uncertainty is a constant challenge for most businesses – especially with high interest rates and tough access to financing. The Profit Principle reminds us: Cash is King.
Cash is the lifeblood of business. If it stops flowing, the business dies. So existential is it, that running out of cash is the only certain cause of business failure. All of the other bumps in the road are navigable.
How can you strengthen your cash flow?
– Diversify your funding sources-consider SBA loans, investors, or crowdfunding.
– Tighten your invoicing processes to minimize delays between service/product delivery and payment. Follow up promptly and strictly on late payments.
– Maintain a cash reserve for unexpected expenses or for customers delaying payments.
Questions for you:
– What’s your go-to strategy for managing cash flow volatility?
– Have you tried any new funding sources this year?
Let’s talk cash flow-what works for you? 👇