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5 Steps To Train Your Sales Team in 5 Days
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Just like your body requires energy to sustain itself, your business needs cash flow to stay alive and thrive in our modern business climate.
Companies have many objectives and goals to achieve in the race to stay ahead of the competition and remain relevant to their audiences. In this race, a healthy cash flow unfortunately often fails to be a key focus area.
If you’re a small business or a start-up, you’d be wise to be concerned about sustaining and staying afloat in your industry early, rather than be worried when the proverbial roof is about to cave in you.
Let’s understand how you can master cash flow management to gain a competitive advantage.
Cash Flow Defined
Cash flow is essentially the movement of money in and out of your business. What your clients pay for your products/services makes up inward cash flow. Fixed costs and production costs make up your cash outflow. If the former is higher than the latter, it gives your firm desirable positive cash flow.
The following three kinds of cash flow are concepts all businesses must reckon with in order to create a sound cash flow ecosystem:
Why Is Cash Flow Management Necessary?
It really is this simple – we’re all aiming for our business to churn out more than we put into it, right? But this idea isn’t restricted to making profits alone. But profits are not the same thing as cash flow.
Often times, it isn’t the lack of capital influx but poor cash flow management and an acute liquidity crunch that forces businesses to shut shop.
Take the case of Home Depot. The American giant was neck deep in cash flow issues with $4 million per month in the negative. They had three weeks’ liquidity in hand. It took some smart cash flow management and appropriation to pull them out of bankruptcy.
Research tell us that up to 82% of small businesses failing due to common cash flow errors. And if you don’t want your company to end up as another statistic, it’s time to keep a close eye on the way you manage your cash flow.
Entrepreneurs believe that profit is what matters most in a new enterprise. But profit is secondary. Cash flow matters most. – Peter Drucker, Management consultant, educator, and author.
Here are a few principles that will help you achieve successful cash flow management.
Here’s a quote from the hotel magnate Adam Stewart to remember: “Cash flow is having the right amount of cash in the right places at the right time, every time.”
In essence, cash flow is the lifeblood of your business that ensures that you’ll be able to sustain operations with a comfortable margin. Without a game plan or clarity on how it works, companies can inadvertently fall into cash flow mismanagement.
To ace this space, as a business, you must be aware of delayed receivables and magnified operating costs plaguing your cash flow’s sanctity. As the business leader, you need to see cash flow management as an ongoing exercise and not a one-off activity, as it is essential for overall business optimization.
If you’re facing challenges in your business, chances are, cash flow is a problem.
This means that something is wrong with your sales process and the way you’re training your team. Get clear on the “5 Steps to Train Your Sales Team in 5 Days” and you’ll not only end up with some great ideas to develop your sales team but some great ways to execute those ideas.