Running your own business? Then you must know a thing a two about cash flow! Cash flow is something that any entrepreneur must fully comprehend from the get-go. Balance sheets are a matter for accountants, banks and auditors. But cash flow is the heartbeat of your company. Cash flow is the lifeblood of any business. You can delegate many tasks when creating a new business, but monitoring and forecasting cash flow is not one of them. It’s your responsibility and your task. Nobody else’s.
Here are 17 tips to improve your cash flow, especially when you’re in your start-up’s early days:
- Keep payroll down to an absolute minimum. Overhead walks on two legs.
- Never sign long-term rent agreements or take upmarket office space.
- Never indulge in fancy office or reception furniture, unless your particular business demands that you make such an impression on clients.
- Never buy a business meal if the other side offers to. You can show off later.
- Pay yourself just enough to eat.
- Do not be shy to call customers who owe you money personally . It works.
- In a city, walk everywhere you can. It’s healthy and sets a good example.
- Check all staff travel and entertainment claims with an eagle eye.
- If you’re going to be late paying, call the vendor’s boss. Give a date. Stick to it.
- Always meet payroll, even at the expense of starving yourself that week.
- Issuing staff credit cards, company cell phones or cars is the road to ruin.
- Leaving lights, computers, printers and copiers on overnight is just stupid.
- A vase of beautiful flowers in reception every week creates a better impression than £100,000 worth of fancy Italian furniture.
- Get used to groveling. Groveling is an effective tool in a start-up’s cash flow.
- They want your business. Play one supplier off against another. Ruthlessly.
- Only enter a factoring deal in absolute extremity. Exit it fast.
- Keep your chin up. It could be worse. You could be working for them.
The above tips are obtained from an excellent book, “How to Get Rich: One of the World’s Greatest Entrepreneurs Shares His Secrets” by Felix Dennis. Go get it if you REALLY want to get rich. The keyword here is REALLY. Wishes is different from compulsion. 
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