Managing cash flow is every small business owner’s most important function. Avoid these seven deadly mistakes to make sure you aren’t creating cash flow problems in your business.
Cash ordina Flow Tip No Consider giving discounts for early payments. If your normal payment terms are 30 days, offer a discount for payment within 7 days (or even more if they pay upfront). Discounts are easier to enforce than a penalty for late payment and are also much more attractive to your customers.
If you are an existing business, you can project your cash flow for the next year by reviewing your expenses for last year. If you are a new business, you will need to estimate your start up costs in addition to regular operating expenses.
Step three: Develop a standard process for interviewing. Make sure that each applicant is asked a number of questions to build a picture of past experiences, character, and skill-sets. Your application needs to have contact info, education, past experience, and references. There are many online programs and websites to help you with this step.
Having cash available when you need it is crucial but you also have to know how and when the cash flows in and out of your business. You just don’t “know” these things. There are skills involved to measure, monitor, and manage cash.
Although it is important to work hard at your business, it is equally important not to burn yourself out. Know when it is time to give yourself a break. Make sure that you find time for family, friends, and relaxation. And do what you know that you need to do to keep yourself healthy and physically fit.
There are a lot of other companies who think they need to include several metrics on their scorecard so that it can be more effective. However, this is not entirely true. A direct relationship on this does not matter. Chances are, if you end up with so much metrics, you will end up having a hard time finding which one is more important. This is particularly true if you will use metrics that are really irrelevant to your evaluation. Once you make do with these irrelevant metrics, you will lower complications that can only defeat your main purpose of setting up a metric system.
You may be surprised at how easy it is to get started. By investigating opportunities online, you will be amazed at what is available. Do a little self-evaluation and find a home business for women that suits you. You will be glad you did.