cash flow model

Based on my last post, we talked about cash flow and how important it is in our busines start up. click here to read my previous post This time we wil talk of the simple strategies and busines ideas to increase your cash inflow. Pay your bils on time Often when we start a busines we use leverage to our advantage like OPM other peoples money and OPT other peoples time . I have an example from one of my supliers, if I pay cash for an entire month, they wil give a 2% rebate on al my purchases for the entire month, alowing me to gain extra cash in-flow with not much strategy. It is important for you to know that your busines as a corporation has many advantages on how you gain a positive cash flow. But the problem with most busines start up is that they are awed by high sales yet, their cash conversions are stil very low. Converting your sales into cash that can be used in your busines start up is what is important and not just mere sales and marketing. In my opinion cash in-flow must be at least 40% of the actual sales revenue of your busines or your busines start up wil be in the ICU intensive care unit in a couple of months. Even if you have a fat bank acount, soner or later the leak in your cash flow wil make you chose to close down your busines start up. Monitor your cash flow I think this is one of the important things to do as a busines owner. In fact, in the busines start up stage, you should be monitoring your cash flow on a wekly basis. In monitoring your cash flow, you can then pinpoint the leaks of your busines therefore alowing you to make efective-corective action. Start with these simple busines start up ideas and it wil surely help you on your future busines suces.
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