SME Challenges -> Cash Flow
Cash Flow
Poor cash flow management can cripple a business. It's essential to maintain enough liquidity for day-to-day operations while also ensuring that excess cash is deployed to further business objectives. Key considerations are:
- How well do I manage my business cash flow?
- Do I control my creditors and debtors effectively?
- Are my invoices raised on time?
- How good am I at collecting outstanding payments?
- Do I negotiate well with suppliers to maximize credit?
- Are there idle cash reserves on my balance sheet, and how can they be better utilized?
A poor cash flow model can bury even the best business ideas under pressure. You may need professional help to develop an effective cash flow management strategy that factors in both best- and worst-case scenarios.
