Avoid Running Out Of Cash
It’s a common struggle for small business owners to keep enough cash in their coffers throughout the year to cover payroll and replenish inventory, particularly if their inflow and outflow of cash is affected by seasonal sales/expenses. To keep from ‘running out of cash’, here’s a list of 5 recommendations to consider:
- Track when money comes in and out of the business. Then build a forecast and stick with it. (Cash-Flow Forecast)
- Get your money in sooner than later (Accounts Receivable)
- Aim for turning over inventory quickly & consider a product’s placement in the store if it’s not moving.
- Distinguish between short-term and long-term debt then avoid ‘paying for long-term assets’ out of the ‘day-to-day’ funds.
- Better employee management (Reducing waste – wasted time, travel costs, avoidable fees/expenses etc.)
Chris regularly partners with business owners to evaluate how they can streamline their efforts, grow and become more sustainable. Early 4th quarter is a great time to prepare for the upcoming year & create a practical cash forecast.
Call him today at (360) 303-5798 for your free consultation.