Understanding cash flow and cash management for small businesses
- Don’t spend ahead of revenue. Avoid unnecessary expenditure.
- Bank all your money, and make sure that you get money from your debtors.
- Control is a big factor – As a business owner, you must be prepared to know about every cent that is going through your business
- Understand the risks of lost stock or revenue. Know your market, so that you can anticipate these problems in advance.
- Keep cash flow positive by paying suppliers as fast as possible.
- Take all your costs into account when calculating your profit
- Be careful not to rely on just a few contracts. Spread the risk as far as possible
- Follow due diligence with a potential client to avoid losing money
- Don’t grow faster than your cashflow can support
Manage your businesses cashflow with BizConnect’s Cash Management Checklist that provides expert advice on how to run your new businesses cash flow. Lear how to:
- Review the businesses finances regularly
- Understand profit and loss
The checklist covers all these areas and teaches you how to manage your businesses cash.
Click here to download: Cash management checklist (Word Doc)
Click here to download: Cash management checklist (Pdf)
During the course of running and growing your business, you will need access to both short-term and long-term cash savings to pay salaries, suppliers, or even to save for a future project or large payment. Standard Bank provides a range of flexible Savings and Investment solutions, with competitive interest rates, to help you meet your business’s savings and investment needs.