Running a small business involves managing cash flow, from what comes in the door to what goes out. If your revenue at any point in time is not enough to cover your costs, this means you may not make money. Even worse, you may need to infuse cash into your business to stay afloat.
At all times, we need to be on top of our cash flow so that we are prepared for a storm, as cash often goes out before it comes in. Of course, we also need to know what to do in a drought, because this is when our business really needs money.
The unexpected slowdown in our world economy during the pandemic is essentially a crash course in cost management. Businesses were forced to learn how much cash inflow they required to cover their cash needs and whether they would have enough cash to cover operating costs and other obligations.
Profitable businesses negotiate, reduce, leverage, outsource, and eliminate spending that positively impacts their performance. Use this checklist to identify ways to...