HOT TIPS FOR Cash Flow Management
Handling and Avoiding Crises
- How Do You Define Cash Flow?
- If your definition of cash flow is flawed, and you’re not tracking the right numbers, you may grow your company right into a cash crisis.
- The 10 Absolutely Must Follow Cash Flow Rules
- Everyone wants cash on hand at all times. Here are 10 rules to help you get there.
- The Magic Number
- Every business has a magic number. By employing his, our columnist didn’t overstaff this year.
- Riding the Economic Roller Coaster
- Tighten your seatbelt. Surviving the ups and downs of the world economy means keeping an eye on business finances.
- When a Cash Crisis Strikes
- Credibility with vendors, bankers, and other creditors is built slowly, but can be destroyed quickly if your company falls behind on payments. Know how to break the bad news to preserve your business’s relationships.
Hot Tip: Prepare for a Cash Crisis
How do you prep for a cash crisis? Wayne Karpoff, president of Myrias Software Corp., knew cash would be a problem late last year. His 15-employee, $1.5-million company dropped selling its products and became a full-time service business. So he built a contingency fund into his annual budget — an amount equal to three months’ worth of payroll. He got the idea when his bank suggested he set up a contingency fund to safeguard his mortgage payments in the event he found himself out of work. He dipped into the fund three times last year to float the company during project and payment delays.
