Slow cash flow is one of the leading causes of insomnia for business owners. The good news is you can rest easier by exercising sound cash flow management. First, scrutinize your selling cycle (how long it takes to develop, market and generate revenue from products or services) and your disbursements cycle (how you manage regular payments to employees, vendors, creditors and others). You want the two cycles to match as evenly as possible. Or, better yet, you want to convert sales to cash more quickly than you’re paying expenses. If a cash crunch appears imminent, consider steps such as slowing growth, reviewing expenses and managing assets differently. Contact us for advice and assistance.
