You never know what tomorrow. Especially in a company. So you need to be prepared for uncertain times.
Every day new companies out of the paper, and new businesses end up closing.
Many entrepreneurs, after spending considerable time tuning your business plan, are wondering why your company just going wrong.
In many cases, the answer is clear: the cash flow. Cash flow is the lifeblood of a business and totally critical in its growth.
With money tight and difficult to get bank loans, a start and broke company can easily be pushed to the brink.

The lesson that we need to master right away is that a company does not work very time when the cash outflow exceeds the cash inflow.
Every business, especially a start, should zealously monitor your cash flow to avoid interruption of your business.
The following tips can help companies to ensure that their cash flow is well managed and not put the company at risk of bankruptcy.

1. Have a budget

Companies need to look into the cash inflows and outflows.
The factors that must be considered to include deadlines and discounts to customers, market default rates and other factors that may affect the cash inflow.
Similarly, it is necessary to estimate costs and other expenses in cash. This includes the time of purchase of equipment, raw materials and inputs.
It also includes the wage payment schedule, taxes, and other costs of the day-to-day.

2. Monitor the results

Examine your budget should not be a frequent activity. On the other hand, the actual cash flow should be compared with the budget to make your business work.
If the cash flows are less than expected, discover the reason for this deficit. If cash outflows end up being higher than expected, to know why it is very important.
Since the reasons for the budget variations are determined, the company can make the necessary corrections in the budget and business plan.

3. Have a plan B

Regardless of the amount of time and energy that an entrepreneur is dedicated to creating a budget, unexpected events can arise suddenly, causing damage.
During that time, the company may need to resort to a source of money to keep the operation running until things get back to normal.
Typical sources contingent funding includes lines of credit, personal property and friends and / or family. Owners should have a plan B aligned before they need money.

4. Copper quickly

A key element of cash flow management is to control the time in and out of funds.
The easiest tactic for a company is to invoice the customer immediately. Companies that make credit sales shall ensure that the invoice is delivered within 24 hours after the operation.
In addition, companies must track their invoices and send reminders before the due to the payment date.
Companies that delay the delivery of the bill will likely receive their payments delayed due to the processing time required by the buyer.
A common technique includes providing discounts to buyers who pay their bills within 10 days.
Buyers with enough cash to make the payment will be willing to give up making use of the pay period in exchange for a discount.

5. Set payment policies in a timely manner

The cash flow management strategy calls for rapid collection invoices and payments on time.
The company must pay your bills when they are due. This ensures that your money is being well spent.
To the extent that the organization is flush with cash, managers should ask for a discount at the time of a purchase, instead of buying on credit.
The offer of a cash payment may motivate the seller to offer a discount at the time of a purchase, rather than a purchase on credit.
The offer of a cash payment may motivate the seller to offer a discount. This can be especially beneficial in cases of great value buy in the discount can be significant.
Keep your balanced cash flow
Cash flow may end up determining the lifetime of your business. Remember this when planning your business, because that is precisely. What will allow it to last.
Practice these tips at any time. A very common mistake in business is to find that after they grow, no longer care.

This is a mistake that should not be committed by whoever the company has a long and fruitful life.

Source :  intoo.com.br