All businesses face unique difficulties - some are simply seasonal, while others are brought on by natural phenomena. Each company has a special set of tools at their disposal to manage each hardship, and their owners generally have a specific approach to finding a solution. There is one indispensable tool, however, that can be regularly used to keep any company running smoothly and help them learn how to navigate tough times: Cash Flow Management.
How well you manage your cash flow is vital to the long-term health of your business. Effective cash management is more than just "money in the bank."
One question I pose to small business owners: "Do you have a six-month cash flow projection?" If not, you may have a difficult time determining how successful your business will be during this COVID-19 pandemic. A projection helps you maintain the relationships you have with loyal customers. It prevents the many problems resulting from a lack of cash.