?? Why cash is king ??

What I have discovered in building my business and working with several business owner is that the biggest challenge business owners face is managing their cash flow, so they can grow and scale their business quickly.

I have 3 steps that I am going to share with you right now that you can start implementing immediately. You need cash to pay for everything in your business NOT profit. Your business can make a profit but you can still have an empty bank account. This is because profit is only temporary or a specific period and only a number on paper. You cannot spend the profit.

Cash, on the other hand, will give actual dollars in your bank account to meet your overall obligations. The key cash flow hacks when you're growing your business to look out for includes:

1?? Cash Conversion. Cash Conversion helps you to figure out the amount of cash you need to operate your business on a day-to-day basis. You can improve your business cash by changing invoice dates, payment terms, making a good profit margin on your products and services.

2?? Cash Allocation. Most business owners do not know their daily cash requirements and as a result, they get caught in the feast and famine money trap. Some days there is enough money and other days, not enough.

So Cash Allocation is all about how you anticipate your daily, weekly, and monthly cash needs and take the necessary steps to increase your cash flow.

3?? Profit Margin. Knowing your profit margin for each product or service will help you to improve your cash flow. Because one of the number one reasons that businesses fail to grow is because they sell one or more unprofitable products or services. The unprofitable products or services will deplete your cash reserve or create capacity issues on your available time. So this step actually teaches you how to find your profit margins and increase your prices on unprofitable products and services or eliminate them.

It is the same process that I have been using to increase my business cash flow and I do the same for my clients as well.

Once your business starts growing fast, and you're hiring more people, and your scaling then you will truly see that cash in the only KING in your business!

Ronica Brown is a certified public accountant (CPA) and business owner who is driven by her love for entrepreneurship. Ronica's financial background and experience in business allow her to easily relate to her clients and provide them with the support they need to grow their business. She helps her clients to operate more efficiently so that they can maximize their profits, reduce tax liability, increase cash flow, and save time in their business. Visit Blog