How To Fix Cash Flow Problems In Business

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By Octavia Conner

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.

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