When I mention cash flow or budgets in posts there is a distinct lack of liking...so at the risk of zero comment and interest, Im going to talk about it anyway! Why? Because 95% of new businesses fail within five years of starting - a significant reason for failure is poor budgeting and cash control. Budget - make sure that you have a budget. Stick to it, adapt it, but dont ignore it! Dont overspend. Be sensible - dont waste money, look for a return on your investment. Dont just purchase on credit, dont over finance. Dont lease a big car because you have convinced yourself it will be great for business. Cash flow - have a cash flow forecast at all times. You need to know in advance if you are going to run out of funds, if you need to get tougher with your credit control, if you need to arrange an overdraft or loan. You are likely to over estimate sales and under estimate purchases... Be aware of this and alter your cash flow forecast. Finally, if you are one of the very many people that dont like figures, budgets, cash flows, find someone who can advise you...it will be a wise investment! and finally finally....like and share. Surprise me!
Posted on: Wed, 26 Nov 2014 07:18:22 +0000
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