socialmedian: Caring and Feeding of Cash Flow

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Caring and Feeding of Cash Flow

Submitted by Asearvern

Apr 17, 2009

Summary

A quick review of cash flow — it's the cash your company actually has available (not the cash you're waiting on from clients) to pay expenses, salaries, rent, equipment, and payables.

Three key things about having cash:

* Your company can't stay in business without enough cash.
* Your company can't grow without cash.
* Your company can't compete without cash. Read the full article

Comments (8)

Asearvern,

Apr 17, 2009

Your company can't stay in business without enough cash.

Jim Hickey,

Apr 17, 2009

Excellent points and I am all too familiar with the concepts after inheriting a family business with definite cash flow issues .... Where was this post a few years ago! :)

None the less, great info for the future.
Jim Hickey

Diannehansen,

Apr 18, 2009

Business cash is foundational. I agree with your well-presented article.

Sydney43,

Apr 19, 2009

Without cash flow, we're dead in the water because then we must rely on credit. When we do that the hole gets deeper and deeper and deeper. We see this everywhere - institutions and government borrowing far more money than they can repay. The end result of that kind of management was apparent even to the 5th grade students I used to teach. If 10 years old realize this, why don't adults who are supposed to be more savvy? Rhetorical question, of course. The answer isn't that hard to figure out.

Asearvern,

Apr 19, 2009

@JimHickey thanks for your comment Jim. I asked the same question...where was this cash flow information when I needed it?

Asearvern,

Apr 19, 2009

@diannehansen Thank you Dianne Hansen! Cashflow is crucial isn't it?

Asearvern,

Apr 19, 2009

@Sydney43 Syndey, thank you your thoughts. Fifth graders seem to know a lot more than we think, eh?

Debra Berndt,

May 10, 2009

The best thing that happened to my business was the economy slowing down. I got to really take apart my expenses and eliminating some programs that weren't working and found other vendors that were less expensive. My monthly business expenses went down and I increased my cash flow by switching to more effective revenue generators. A little creativity can go a long way.