11 Ways To Better Manage Cash Flow In Business

by SCORE authors

Improve Your Cash Flow

What exactly is cash flow? It is the movement of funds in and out of your company. Ultimately, cash flow is the lifeline of any small business. A profitable company on paper could end up bankrupt because the cash coming in didn’t compare with the cash going out. Companies that don’t execute strategies related to maintaining good cash flow could land their business in hot water down the road. 

While all businesses may ebb and flow in their own way, there are several ways to better manage consistent cash flow as a small business owner. We asked 11 small business professionals to give us their best tips and tricks on how to effectively manage cash flow.

Figure out Your Breakeven Point 

Any good business owner should know when their business will become profitable. This will not necessarily affect cash flow, but it will give an early goal to strive for and a target needed for projecting future cash flow. Negative cash flow and negative profits make for a depressing combination, that is why knowing your breakeven point is so important. Focus your efforts on managing your cash flow with an eye toward reaching your profit goals!

-Rex Murphy, Montauk Services 

Company Line of Credit

 A successful protection strategy against cash flow concerns is a company line of credit. If you use them as leverage, you will be eligible to get a line of credit with a portion of the accounts receivable or inventory.

-Eliza Nimmich, Tutor the People

Read entire article at SCORE: https://www.score.org/blog/11-ways-better-manage-cash-flow-business