How To Fix Cash Flow Problems In Business

Octavia Conner

By Octavia Conner

Tags: All, Cash Flow, Accounting

An unhealthy company is when the business is accumulating more debt than profit.

There are two cash positions for all companies, Positive & Negative.

A Positive cash position means that the business has a cash surplus, and the company has no problem covering its monthly expenditures.

A Positive cash position means that the company earns and keeps more money than it spends.

A Negative cash position means that the firm is spending more than it's earning. Also, the company is having challenges covering payroll and other costs.

If your business NEEDS business loans and company credit cards to sustain the daily operations, the company is functioning on unstable and unreliable ground.

And you have to ask yourself, how long will the company last in this position?

So how do you fix a negative cash position? In this video and article, I identify three ways to fix your cash flow problems quickly.

 

 

1st - Perform an expense audit

 

Review all the ways money leaves your business and identify which items should be eliminated. 

 

2nd - Focus on revenue earnings

 

Spend 80% of your time on revenue-generating activities - those tasks that will increase the company's revenue.

 

3rd - Create a Profit Plan

 

Create a plan that tells your money what to do. If you don't tell your money what to do, it will tell you by forcing you to make decisions (that are not always good) because you need the money.

 

Live Streaming Images 12 (19)

 

Your financial foundation, profit plan, and money metrics are the game charging tools you need to position your business to NEVER have money worries again.

 

When you build and maintain a solid financial foundation that enables you to leverage your numbers to grow faster, smarter, consistently, and strategically.

 

Building a profitable million-dollar consulting firm is easier than you think when you or someone on your team laser focus on your money cycle and are aware of the cash flow red flags.

 

Of course, if you need assistance, don't hesitate to schedule a Discovery Session with our team today.

 

download-1470x1312-1

 

0 Comments