SME BlogCash Flow Advice For Startups
Cash is king – a truism hardly worth repeating, you’d think. But for many a startup or rapidly growing business, it’s still cash flow problems that are a killer. …
Cash is king – a truism hardly worth repeating, you’d think. But for many a startup or rapidly growing business, it’s still cash flow problems that are a killer. Good advice on managing income can be found over at BusinessPundit.
cash flow, startups, small business, income
Alex is the founder and editor of SmallBizPod, the UK's first podcast dedicated to small business, start-ups and entrepreneurship. Alex writes about topical small business issues, entrepreneurs and anything else that catches his eye here on the small business blog. http://www.smallbizpod.co.uk
Leave a comment
Share & Comment
4 commentsRelated Posts
SME News
- Entrepreneurs 2012 with President Bill Clinton 13-16 November
- IDCEE 2012. Internet Technologies and Innovations
- Nurturing the next generation of social entrepreneurs
- Get Britain Trading needs you
- Manufacturing gains, but economy fragile
- Minister to answer webcast questions on apprenticeships
- Staff beat £230 million a day cost of big freeze
Photostream
BUSINESS PODCASTS
Click on one of the play buttons to listen to inspirational interviews with entrepreneurs from SmallBizPod.
I guess truisms are truisms for a reason. Cash is king, god, emperor… profit looks good in the accounts. Cash looks good in the bank or in your pocket.
We always call debtors the week before an invoice is due to make sure there are no problems. If there is a query, you can solve it and still get paid on time rather than waiting until the debt is overdue before you chase. We find that because we watch the detail we get very few late payers and have had only one very small bad debt in 4 years.
Build relationships with your key creditors. Visit regularly, brief them on business progress, brief them when you have published your accounts. Build their confidence and extend your terms.
A simple measure: If your creditor days are longer than debtor days: Good. If its the other way around: Bad. If you don’t know: Find out. Do it now before you take another decision regarding your business.
Thanks Clive for really hitting the mark with some very practical advice once again. You’ve got me looking around for a ‘SmallBizPod Recommended Commentor’ logo 😉
Alex – you really ought to get Clive on a podcast series – they’ve done some awesome open source work and always have a good story to tell.
What I like about them is they express things in ways us poor accounting types can’t even begin to consider. We just don’t ‘get it’ when it comes to business communication – most of the time…
Agreed, Dennis. With Clive’s experience of MBOs, a topic I’ve been wanting to cover for a while, and penchant for pithy advice, I’m sure his appearance on the podcast can only be a matter of time.