International Business Growth Radio Network
  • HOME
    • YOU >
      • Grow with Us
      • Themes
      • FAQ
    • US >
      • North American Partners >
        • North American Hosts
        • North American Directory
      • Australasia Partners >
        • Australasia Hosts
        • Australasia Directory
      • South Asia Partners >
        • South Asia Hosts
        • South Asia Directory
      • Prime Meridian Partners >
        • Prime Hosts
        • Prime Directory
      • Exec Team
    • LISTEN NOW >
      • OnAir TODAY
      • Show Notes
      • Podcasts
  • News
  • Blog
  • NETWORK
    • OnAir Talent >
      • William Eastman
      • David Wilson
      • Ellen McIlhenny
      • Angela Chaney
      • Richard Miller
      • Ravin S. Papiah
      • Steve Sweeney
      • Kasfia Rashid
      • Bob DiGiacomo
      • Lisa Askwith
      • Ally Nitschke
      • Russell Colbourne
      • Jeremy Gray
      • Raj Kapur
      • Crystal Y. Davis
      • Sarita Johan
      • Brandon Souba
      • Kevin Beers
      • Londina Cruz
      • Bert Robinson
      • Jonathan Kennedy Jr
      • Damian Johnson
      • Rick Carter
    • Agilerad.io
    • Sponsor Network
    • Special Preferences
    • Privacy
  • NOTES
  • Community
  • APP
  • SHOP

show notes

Stages of Development

Cashflow for Small Businesses - Raj Kapur

23/11/2020

0 Comments

 
Picture
Raj Kapur - "Guidance to Wealth" 


IBGR.Network - PROFIT Radio. Everything a business owner needs to start, grow, or exit a business. Grow With Us.

Introduction
The old saying that 'cash is king' is never more accurate than when dealing with a small business.

When you first start a new business, it can feel overwhelming as you are surrounded by a multitude of things to do which includes all the back-end operations, sales, marketing … you know what I am talking about here. Many times Cash flow takes a back seat .. which can be the biggest mistake and one of the causes of small business startup failures. 

Cash Flow or what is commonly referred to as Working Capital is the heart of any business,” “Without it, a business cannot survive.

As a Small Business, understand that a cash flow statement is a mandatory statement that records cash and cash equivalents that are coming in and leaving the company. The key function of the CFS is to let investors and lenders take a look at how your company's finances are being managed and where your cash is coming from.

Show Objectives
In business, cash is always on the move. The cash flows into the account when customers pay for their purchase, when a loan is received from the bank or other source, interest is received or when any assets are sold. 

Cash flows out of the bank account when suppliers are paid, wages and salaries are paid; interest is paid to the bank, and so on. 

The difference between the cash inflows and cash outflows during a specific period is known as the "net cash flow". 

Tips on Understanding Cash Flow as a Startup
Understand and record cash flow projections
Profit does not equate necessarily to cash
Unanticipated expenses and emergencies e.g. Covid-19
Marketing Expense exceed sales
Late payments can cause major cash flow disruptions
Faster Growth in the company

What to Do to Manage your Cash Flows
Spend slow and have it paced out
Outsource - Save on hiring costs
Pay Yourself First
Discount for early payers
Negotiate terms - both on Receivables and Payables
Use a Charge Card
Negotiate on everything in your business

A few more things 
Understand the cycles of your business and then use to forecast cash flow

Keep separate Business & Personal Accounts including credit cards
Pay your bills on time - On Time… not early

Get a handle on your Invoicing and make sure you are paid on time
Lease or finance equipment including office and IT equipment
Build cash reserve and invest a portion back into the business
Get a Line of Credit

Look at hidden opportunities in your business
Revamp your marketing strategies to generate more sales

Understand the Slow seasons and use Social Media (if possible) to reach out to your customers

Understand your money - It is your money

Statistics
Overall, 90 percent of small-business failures are caused by poor cash flow, according to Dunn & Bradstreet

According to the Receivables Exchange, small businesses now wait nearly 50 days on average to get paid

Shows
Previous: 5 Steps to Grow your Business & generate more money - Raj Kapur

Next: S4.05.3NA Hiring Talent - Raj Kapur

Written by: Raj Kapur
www.RajKapur.com
www.NonProfitEdge.org ​
​
0 Comments



Leave a Reply.

    new choice for BUSINESS SEARCH

    ​All IBGR Shows Notes are available for download

    Authors

    - (NA) North American Radio Hosts
    ​- (AA) Australasian Radio Hosts
    - (SA) South Asian Radio Hosts
    - (PM) Prime Meridian Radio Hosts

    Archives

    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020

    Categories

    All
    Season 1 - A. Strategy
    Season 1 - B. Operations
    Season 1 - C. Sales
    Season 1 - D. People
    Season 1 - E. Ownership
    Season 1 - F. Coaching & Consulting
    Season 2 - A. Financial Results
    Season 2 - B. Operational Productivity
    Season 2 - C. Sales Effectiveness
    Season 2 - D. People Performance
    Season 2 - E. Owner As Executive
    Season 3 - C. Customers
    Season 3 - E. Executive
    Season 3 - F. Finances
    Season 3 - IBGR Specials
    Season 3 - O. Operations
    Season 3 - P. People
    Season 3 - Special Series
    Season 4 - Customers
    Season 4 - Executive
    Season 4 - Finance
    Season 4 IBGR Specials
    Season 4 - Market Domination
    Season 4 - Operations
    Season 4 - People
    Season 4 - SPECIAL SHOW
    Season 5 Customers
    Season 5 Finance
    Season 5 People
    SPECIAL EPISODE

    RSS Feed

Site powered by Weebly. Managed by Radio.co, Designed by gWORX Media
Photo used under Creative Commons from magerleagues
  • HOME
    • YOU >
      • Grow with Us
      • Themes
      • FAQ
    • US >
      • North American Partners >
        • North American Hosts
        • North American Directory
      • Australasia Partners >
        • Australasia Hosts
        • Australasia Directory
      • South Asia Partners >
        • South Asia Hosts
        • South Asia Directory
      • Prime Meridian Partners >
        • Prime Hosts
        • Prime Directory
      • Exec Team
    • LISTEN NOW >
      • OnAir TODAY
      • Show Notes
      • Podcasts
  • News
  • Blog
  • NETWORK
    • OnAir Talent >
      • William Eastman
      • David Wilson
      • Ellen McIlhenny
      • Angela Chaney
      • Richard Miller
      • Ravin S. Papiah
      • Steve Sweeney
      • Kasfia Rashid
      • Bob DiGiacomo
      • Lisa Askwith
      • Ally Nitschke
      • Russell Colbourne
      • Jeremy Gray
      • Raj Kapur
      • Crystal Y. Davis
      • Sarita Johan
      • Brandon Souba
      • Kevin Beers
      • Londina Cruz
      • Bert Robinson
      • Jonathan Kennedy Jr
      • Damian Johnson
      • Rick Carter
    • Agilerad.io
    • Sponsor Network
    • Special Preferences
    • Privacy
  • NOTES
  • Community
  • APP
  • SHOP