A cash flow plan that assigns an expense to every dollar of your income, where in the total income minus the total expenses equals zero. e._q.push([t].concat(Array.prototype.slice.call(arguments,0)))}} The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. Analyze your existing sales. Now that you know the necessary steps to prepare a cash flow statement, let’s discuss strategies to improve your cash flow management, and interpret key numbers as well as their effects on your business decisions. While it’s true that you often have to spend money to make money, expenses should still regularly be scrutinized and expenses should be made strategically. Relevance. This means you have to manage your expenses just as much as your sales. An axiom in business is that CEOs and founders must “know what they don’t know.” It’s rare that a CEO or founder has expertise in all arms of the business. Based on the benchmarking from #2, are there materials or services you may be overpaying for or that you may not need at all? A written … Cash flow Plans do not work when. Randi’s a freelance graphic designer—she needs to calculate her free cash flow to see if hiring a virtual assistant (for 10 hours a month) to handle client admin tasks is financially feasible. Accept credit cards and bank payments online. One of the first steps to determining your company’s cash flow issues is to dive into your financial analytics. First, let’s get the pertinent financial terms straight. Remember, if you’re losing money on your products or services then it doesn’t matter how much you sell–they’ll never pull you out of the red. for(var n=0;n