10 Expert Tips on Managing Cash Flow as a New Business

Thought you might be interested in an article 10 Expert Tips on Managing Cash Flow as a New Business and thought I’d share a few points with you here. I’ve found some relevant information here so if I find more, I’ll be sure to pass it on.

1. Know when you’ll break even.

Knowing the point at which you’ll break even won’t necessarily impact your cash flow, but it will give you goals to strive for and a ready-made target for forecasting where your cash should go in order to reach that goal.

If you focus on that goal, and the milestones you have to hit to reach the break-even point, you’ll be smarter about how you spend your startup capital along the way, and will budget accordingly.

As Tony Hsieh, founder of Zappos, says, “Chase the vision, not the money. The money will end up following you.”

2. Keep your eye on cash-flow management.

You need to avoid focusing too heavily on profit. While that may sound like a contradiction to my first point, it’s far from it. You look at your profit and break-even point in order to set benchmarks -- but you still need to maintain focus on cash-flow and spending. That doesn’t change just because you cross over into profitability.

“Every month isn’t enough,” says Derek Flanzraich of Greatist. “Nearly every week I’m checking both my personal and business finances.”

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Thanks,                

Chris