How can I maintain cash flow in my business

you mean save money, so you have to controll yours investments, hw ca you do it? you have to avoid certains comunications, like stop the talking chat, this is a level of control your money. this is how business begin.

Good day Warren

You can manage the CashFlow by first having a budget drawn based on your revenue, in that budget allocation you will have allocated savings for the business, do not put pressure on yourself by wanting to save more than what business can afford. From your budget you will also determine the money that will go back to buying stock and be desciplined about it.

Excellent question, Warren! Maintaining a positive Cash Flow is key in the business, since it is like the oil that lubricates the machine and if it is not present the machine stops (the business goes bankrupt) The first thing is to have your daily weekly and monthly cash flow statement for at least 6 months ahead. With this budget (state of cashflow) identify the points (the days) in which you need to take action to avoid cash flow breakdown (negative cash flow) and make an action plan to avoid this situation (You should be able to renegotiated with all suppliers, postponing others expenses, requesting bank/other financing, advancing sales with effective actions to have the necessary Cash. With your cash flow statement you can make a plan so as not to have financial difficulties. For specific actions You (and every entrepreneur) can ask me on my profile.

It will be a pleasure to help you and collaborate in the growth and sustainability of your business and in having a full and balanced life as a business owner. Guillermo Doffo

In my opinion, if you want positive cash flows in a business, then you have to have high enough gross margins on the products you sell. If the gross margins are well below 30%, you will not have much cash remaining after you have paid your fixed operating expenses. EXAMPLE: You sell a carton of eggs for $ 2.00 and it cost you $ 1.75 to land the product in your store. Your gross margin is 12.5% ($ .25 / $ 2.00) which is too low to generate strong cash flows and maintain the business.

The only way to make up for the low margins on a unit basis is through selling more volume – you have to sell a lot more eggs and this is not easy to do. This is why it is so important to offer products that can command premium pricing; i.e. these products are superior, better or different from everything else offered in the marketplace. If you are selling basic commodity type products that are the same as every other competitor nearby, then it will be very difficult to have strong cash flows since you have little or no influence over price. The competition will invariably push prices down to a point where your margins are too low to generate good cash flows and maintain the business.

This is a fundamental lesson in business that I think many entrepreneurs seem to struggle with – know your gross margins and make sure they are above 30%. And if you want positive cash flows, the best way to get there is through premium pricing. You have very limited control over lowering your cost and raising the volume lever is not easy. Pricing is what drives high octane to profits and if you convert your sales through point of sales transactions (not having to collect payment in the future), then this approach to running the business should translate into strong cash flows and help you maintain the business.

Cash flow is the king in any business. If it doesn't flow, the business will be stagnant. One of the best ways to maintain good cash flow is to have an appropriate knowledge of cash management.

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