A key component of any business finance is a cash flow plan. Most entrepreneurs create this plan when they have to provide a business plan for capital funding for an unexpected large project that they require goods and increased staff to complete. But don’t wait!
How about on a day-to-day basis? Do you know how to plan to pay your vendors and staff, or even yourself?
Yes, having a successful business certainly helps! But keeping track of how much money comes into your business and how much has to go out – and WHEN – is key. A proper cash flow plan will help you make decisions, such as:
- how you can afford new employees, and possible capital expenditures to grow your revenue
- how to prepare for fluctuations in revenue
- the best way to receive money from your clients
- how best to fund unexpected large projects