DO YOU WANT to get out of the cash crunch in your business

26 Mar , 2016  

Cash flow is king in every business. Most of business focus on the profit and turnover of business and neglect the king that is cash flow and suffer in business and end up with closing the business. Cash flow is one of the leading causes of small business failure. Cash flow is the lifeblood of a business. If you have cash flow management problem, no matter how much money you make the problem will remain the same for you.

According to a 2013 survey,

28%

of small business owners say they lose sleep over cash flow problems

48%

say they pay others before paying themselves

28%

had experienced cash flow problems such as postponing hiring.

Cash flow problems are best avoided, but even if your business is experiencing a cash-flow crisis, there are several things you can do to get back on track.

Way to get out of cash Flow Crunch

1. Get Financially Literate:

01-Get-Financially-Literate

There are two things they don’t teach in school, those are how to handle your money and how to handle relationship. So when we complete our formal education and started our journey towards success in life we struggle in managing our finances. In real life we pay the cost in money because of our wrong decision.
In our business or profession we get lots of money but we can’t keep it for long term and in future we face the cash flow crunch. We make our decisions as per our emotions not driven by the financial statements because we don’t understand or we are unable to read the financial statements. So get literate financially and control cash flow by making decisions from financial statements.

2. Only do the business you are in:

02-Only-do-the-business-you-are-in

I observed that many successful business person sees another successful running business and start the same business and withdraw cash from current business and invest in new business and face cash crunch in current business. And talk about how the market is bad.
You can see in the world there are now one business field or sector or industries which is have guarantee of success or failure. The only business can succeed which you know better. So now in which business you’re in know it better and be the successful in it.

3. Be the Leader:

03-Be-the-Leader

Business is a team game and every team needs a powerful leader to win the game. In business Manager, CEO, Directors, Partners and proprietor have the ability to take decision as a leader which forward the organization and achieve financial growth.

If a business managers does not have leadership qualities that organization suffers financially. They struggle in their cash flow managing, managing team, managing expenses. The best players won’t win any game without a good leader, and a leader cannot win the game without players.
Managers needs to know whether the business is generating enough money to fund the things it want to do; if not, it either needs to raise more money or curtail some activities.

A leader of business always ready with answer for the following questions.

  • 1. How much money do we have?
  • 2. How are we doing?
  • 3. Where will we get the money we need?
  • 4. How will we spend the money?
  • 5. How will we protect the Money?

A poor or ineffective leader can’t ready to answer above questions powerfully.
There are various ways and things we can do in business that can helpful in keeping positive cash flow in regular business. In today’s business world entrepreneurs are getting frustrated only because of cash flow management, If you can able to do above only 3 things consistently you will be able to get out of cash flow crunch.

Contact For Financial Advise

mahesh-SawarikarMahesh.M.Sawarikar
Financial Coach & Trainer
Mob: 9922591532
www.eaccounting.co.in

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