How Proper Cash Flow Management and Consistency Leads to Success
by Ronis Gracie on February 24, 2016

Read in 1 minute


Without liquid assets or a merchant cash advance loan, a small business will have a hard time getting off the ground floor. If a company plans to make it through their first year in business, the owner needs to master the art of securing and managing capital.

Cash Flow Management – Make Predictions and Learn to Control your Funds

To manage cash flow effectively, you need to be realistic about the current state of your business. This is the only way to make plans that are attainable and affordable enough to subsidize. Every business has slow periods and prosperous moments, so you should seriously consider this dynamic when making forecasts. With pragmatism, you can make an accurate analysis of your sales and expenses over a 12 month period.

You will need an exclusive account for your business before you track your progress. Most new entrepreneurs will put the income from their business into their personal bank account. Some will do this out of ignorance, and others may do this for the sake of simplicity. You cannot circumvent this step, even if you are operating as a sole proprietor.

With a proper setup, you will be able to clearly see the funds as they are going in and moving out. For the first few months, you may have to reserve your profits for business expenses only. If you must take out funds for personal reasons, list the withdrawal as a wage payment so it remains consistent with other transactions.

Taking Care of your Expenses in a Timely Manner

Get into the habit of paying your bills the moment they are due. It is not a good idea to put this off because you may incur late fees or interruption fees. If your memory escapes you from time to time, set up a routine electronic bill disbursement plan so payments can go through automatically.

Your bank account must always remain healthy so you can avoid paying penalties for insufficient funds. Push yourself to create and send invoices on time so you will always have the income to support expenses. Occasionally, you will get a customer who sends in a payment well after an invoice is due. This is unavoidable, but you should not encourage this behavior by delaying your own billing process.

A Good Operation Will Ensure Your Success

With proper cash flow management, you can run your business effectively with no reservations. As you progress, you will notice an increase in employee productivity and customer confidence. Once this happens, all you’ll need to do is work the system, and it will continue to produce income consistently.

Top Articles

Featured Posts

Minority Business Loans – Discover 36 Opportunities Here

by Taylor Gordon on May 15, 2017
You may be searching for minority business loans because you have an idea for a great new business. Or perhaps… Read more

Small Business Loans for Women – Compare 38 Options in One Place

by Rebecca Hosley on May 15, 2017
When it comes to small business loans for women, knowledge is power. Women are not new to entrepreneurship, but they… Read more

Business Owners: 5 Truths Your Banker Doesn’t Want You Knowing

by Jackie Lam on May 10, 2017
When looking for the best banks for small business loans, Bank of America and Wells Fargo may come to mind. However,… Read more

Small Business Loans for Veterans – A Definitive Guide to VA Business Loans

by Eric Goldschein on April 7, 2017
Small business loans for veterans are available through various channels and are also often supplemented with business development tools. Business… Read more

Trump Pick Linda McMahon Has HUGE Plans for the SBA

by Eric Goldschein on February 17, 2017
Linda McMahon, Donald Trump’s pick to head the Small Business Administration, isn’t exactly synonymous with the word “small.” Along with… Read more

A Complete Declassified List of Tax-Exempt Fringe Benefits

by Amy Fontinelle on January 30, 2017
With all the uncertainty surrounding Trump's tax plan, tax saving tips for small business owners are as important as ever. Finding… Read more

6 Bad Habits to Break for Gigantic Business Growth in 2017

by Lauren Ward on January 24, 2017
As an entrepreneur or small business owner, the New Year is the perfect time to take a step back and… Read more

9 Cloud-Based Tools to Solve All Your Small Business Accounting Needs

by Caitlyn Rose on September 19, 2015
 As a hard-working entrepreneur, you should already know how important it is to keep a careful watch over every penny coming… Read more

SBA Loans: The Ultimate Guide to Government Lending

by Amy Fontinelle on February 7, 2017
Small business loans through the SBA fall under several categories and while they all have slightly different requirements, there's a few universal… Read more

An Epic Guide to Business Credit Cards, Charge Cards, & Lines of Credit

by Eric Goldschein on February 2, 2017
If you’re a small business owner, you know how important it is to always have extra capital on hand so you… Read more

The Trump Presidency & Your Small Business – What You Need To Know

by Eric Goldschein on January 19, 2017
As Donald Trump takes office, small business owners everywhere are wondering what to expect from the 45th president. While Trump’s small… Read more

5 Advertising Tools to Help Your Small Business Grow

by Ronis Gracie on September 11, 2016
If you would like your small business to flourish and grow, you need to offer unique products or services that… Read more
Learn More