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Business owners – what you are about to read is some of the most important information you need to know when running your business. Why is it important? Because we’re now getting on to the serious subject of managing your cash flow.

Try working out estimates for these the following to get an idea of cash flow:

  • Cash in, or receipts (sales and other income)
  • Monthly loan repayments
  • Outlay on stock or raw materials
  • Stock levels
  • Remaining capital
  • Expenses – this includes both permanent or fixed expenses, such as rent and changeable or variable expenses, such as advertising, transports costs, etc. Also kick-off costs for fitouts, purchase of the business, legal costs, etc.

These last costs will go up and down with the success and failure of the business and have to be carefully monitored. Take some time to become an expert at cash flow. Your bank manager will love you for it!

So, if you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Published on: Thursday, January 13, 2011

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