============================================ The 10 Cash Flow Rules You Can't Afford to Ignore - by Philip Campbell, CPA
© Philip Campbell - All Rights Reserved
============================================
The statistics on small business failure are alarming.
Michael Gerber, author of "The E-Myth: Why Most Small Businesses Don't Work and What To Do About It", says that 40% of businesses fail in their first year. 80% fail within their first five years.
THEY RAN OUT OF CASH.
Don't let this happen to you.
Here are 10 Rules to help you take control of your cash flow so you can create
business you have always dreamed of.
1. Never Run Out of Cash.
Running out of cash is
definition of failure in business. Make
commitment to do what it takes so it does not happen to you.
2. Cash Is King
It's important to recognize that cash is what keeps your business alive. Manage it with
care and attention it deserves. It's very unforgiving if you don't.
Remember, Cash Is King, because No Cash = No Business.
3. Know
Cash Balance Right Now.
What is your cash balance right now? It's absolutely critical that you know exactly what your cash balance is.
Even
most intelligent and experienced person will fail if they are making business decisions using inaccurate or incomplete cash balances. That's
reason why business failures are not limited to amateurs or people new to
business world.
4. Do Today's Work Today.
The key to keeping an accurate cash balance in your accounting system is to do today's work today. When you do this, you will have
numbers you need - when you need them.
5. Either You Do
Work or Have Someone Else Do It.
Here is a simple rule to follow to make sure you have an accurate cash balance on your books. You do
work or have someone else do it.
Those are
only two choices you have. The work must be done. It's like mowing
lawn. You can't just ignore it. Someone has to do it. That means either you do it or you have someone else do it.