CASH IS KING, never a truer word has been spoken for business

How do you measure the success of your business?  Is it profit or is it if you have investors knocking at the door…..regardless of whether your business is a success yet, it is imperative that you focus on your cash flow and optimise it.
 
Here are just a few tips to help optimise your cash flow:

• Overdue debts - chase them down! Be proactive, call, email and call again.  Not getting paid is the number one killer of a good cashflow.
• Excessive spending -we’ve all heard “build it and they will come”….for some they may be fortunate enough for this to be true, however the vast majority in the early days of business need to keep tight reigns on our spending. Don’t spend money you don’t have!  Simple cost-benefit analysis on all costs will help your cashflow.

• Bullish future sales forecasts - while optimism is a key ingredient for business success, certain segments of your business require keeping it real.  Accurate cashflow forecasting depends on keeping it real.  Future sale forecasting is an art and the only guarantee is that you will be wrong - the aim is to minimise the gap between forecast and reality.
• KISS - Keep It Simple Stupid - be sure to keep your invoicing processes simple and make your payment methods as user friendly as possible.  Issue your invoices electronically, allow for a number of payment methods including immediate electronic payments.  The easier it is for your customers to pay you, the more likely you'll be paid (on time!).

​And remember, a sale is not a true sale until the cash is in the bank!