Cash Flow for New Businesses

New businesses chugging along in the first 2 years need to preserve cash flow above all else:

• get invoices sent out once projects are wrapped up
• make sure customers pay on time
• don't get tied up in inventory
• don't pay bills too early
• pay vendors on time
  
  Here is an article about the importance of an initial cash flow for new businesses you might find helpful.
  
  "Why an Initial Cash Flow is Important.

Remember, the cash balance and the bank balance are two different ways of looking at the same issue. The two will probably never match up since checks and payments are in circulation.

Also, look ahead quarter-by-quarter. What do you expect the cash flow situation to be for your new business?

Cash is king. If you have partners, have weekly meetings to review the cash balance, bills, invoices expected in and payments to split.

If you don't have partners, find a friend or someone you can report to on a weekly basis. Presenting the facts gives you a clear idea and understanding about the cash flow in your business.