Nothing new but eternal truth. Continuous positive cash flow is critical to any business. Many dont understand the difference between profitability and cash flow.
1) Estimate the minimum cash reserve at any given time. --- A
2) Annual top line estimate and arrive at monthly fig bt dividing it by 12 --- B
3) Ensure you always have ---- A + 2 B in your current account all the time.
How you can do it
1) Buy late (Just in Time)
2) Negotiate also on credit period ( Not only price) while buying
3) Bill fast and Collect fast very-- very fast.
4) Insist on bank transfer. This saves 3-4 days
5) Monitoring cash flow on daily basis is somebodys job in the organisation and he must do it.
1) Estimate the minimum cash reserve at any given time. --- A
2) Annual top line estimate and arrive at monthly fig bt dividing it by 12 --- B
3) Ensure you always have ---- A + 2 B in your current account all the time.
How you can do it
1) Buy late (Just in Time)
2) Negotiate also on credit period ( Not only price) while buying
3) Bill fast and Collect fast very-- very fast.
4) Insist on bank transfer. This saves 3-4 days
5) Monitoring cash flow on daily basis is somebodys job in the organisation and he must do it.
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