Whether you’re running a startup or you are a fortune 100, it is important to have a firm grasp on your financial situation. Unlike most big companies with a CFO your small business or startup only has one money manager, you.
According to abj Entrepreneur, Philip Campbell has written a new book that’ll help entrepreneurs get a grasp on their money situation because if they run out of money then their business will be in trouble.
Never run out of cash. Appropriately first. Running out of cash is the definition of failure in business, so do whatever it takes to never run dry.
Know your cash balance right now. As a former bank commercial loan officer, I would often ask how much cash a prospective business has right now. If my prospect could give me a good answer, they were far more likely to get a bank loan. Why? Because it meant that business owner was updating himself or herself daily on one of the most important pieces of information in his business. It is a sign of a well-run business.
Do today’s work today. Knowing what your cash balance always is a means you to make adjustments to your cash flow forecast and your accounting system as they occur. Don’t wait until tomorrow.
Photo by House Of Sims