Ways to maintain a healthy cash flow
Read time: 1 min Date Added: 07/03/2024
Healthy cash flow is vital for business growth. We’ve asked successful entrepreneur, Joe Bennett and James Sykes, Head of Invoice Finance, Bank of Scotland to share their top insights on why cash flow is so important and how business owners can keep it healthy.
Why is cash important for a business owner?
Cash is the life blood of your business. The thing that makes businesses go bust is lack of cash. It’s not lack of profit. You can nurse a business making no profit forever. But you can’t without cash. I think every business owner should understand that having effective cash flow management is the most important thing in your business.
Joe Bennett, CEO and Founder of Juice Global
What are the five key things to help maintain a healthy cash flow?
- Constant real-time knowledge of your cash situation. You need to check your cash flow every day.
- Forecast your cash flow at least three months ahead. I know some business owners that look as far as a year ahead.
- Scenario plan for both positive situations and negative ones. Force yourself not to be overly optimistic so you don’t get caught out.
- Find innovative products to help you manage cash flow. For example, Invoice Financing which can give you access to cash income earlier.
- Be consistent. You need to implement the things above every day.
James Sykes, Head of Invoice Finance, Bank of Scotland
