Return Flow | The Tila's Girls

by Silvia Chauvin

I hope that if you read the note The return flow of funds or cash flow you are been convinced of the importance of a return flow of funds, now I suggest that you read these simple tips to keep your cash flow healthy:

Spend as little as possible: This is especially important when starting a new business. Before you buy anything ask yourself if you really need it if you can fix it, do not buy it, save the cash.
Do not buy hardware that does NOT need: To complete the previous suggestion note this: a PC, printer, digital camera, if not needed immediately, do not buy, with so rapid technological developments, one thing is for sure, tomorrow is better and cheaper. If you are friend or gadgets ( “technological gadgets”) Convince: You really do not need to monitor the 23 “Apple Cinema.
Be realistic, brutally realistic, if I allow the word: always overestimated its expenses and underestimate your income. Your cash flow should be provided (at least until your project is stabilized) in the ‘worst scenario’. If you know the fact that your company can arrange for a time even when things do not go all that well, then you know you have many chances to survive in the medium term, it will completely change your perspective and you do not mind if you show the best setting!
Chase invoices as delays: I know this may sound a bit harsh but I say this from experience (bitter personal experience …) as your client is late, start calling to complain. If you do not press and the company has financial difficulties, bring your bill after the other providers more insistent, and you will get your money at the end, if there is money …
Update your cash flow spreadsheet regularly: As time passes you will see that some of the assumptions made with respect to revenues and expenditures were incorrect. No matter if things were better than planned, when disputes arise, adjust your cash flow or even better keep a spreadsheet of projected cash flow and real. Until the first year of operation is probably a good idea to review and adjust the schedule each week, depending on the type of enterprise. Then, each month will be fine.
Court costs everything possible: Give a look to the column strict expenditure and cash flow. Can you get a better price on any item? Is there any item or postpone dispensable? Remember that any savings, however small help in the difficult time of the beginning.
Remember, customers do not always pay on time-rather the opposite …. When you plan your cash flow always do so considering that it takes much longer to collect what is intended. Make sure your cash flow does not depend on a very high% of their invoices are received on time. If your cash flow is dependent on a particular bill, be sure to keep a good line of communication with the company owes, and to communicate with them long enough to have leeway in the event that this company has a problem.
Adjust the billing cycle: If the nature of your business allows it, try to organize the weekly turnover. In this way, once its initial cycle, you have accounts receivable every week, which will help balance the cash-flow.
If you have to charge every month, shortening the cycle: To leave your last bill before the 25th day, so your client will have at the beginning of the month.
Do not crowd to deposit checks once a week. In mean while anything can happen.

Of course the cash flow is not unique, there is a phrase well known among entrepreneurs: “cash flow queen” because without capital, no business holding. But we must not fail to monitor the gains. After all you can have a good cash flow and few gains, and business does not work either.

Source: mujeresdeempresa.com

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