“Cash … is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent” — Warren Buffett
It’s only in times of desperation that this important part of any business truly gets the attention it deserves. One of the many impacts of coronavirus has been the cash strain it has put on many small businesses. The ones who were managing cash effectively will fare better through the tough times and will be more likely to survive.
The reality is that all businesses should make cash management a priority, and not just when they find themselves in times of crisis.
As a small business owner you’re mainly concerned with “what if?” or “can I do this?” questions when it comes to cash flow:
- What if this customer pays late?
- What if I get an unexpected bill?
- Can I spend money on a marketing campaign this month?
- Can I get that extra employee?
- Can I take more drawings out of the business to fund my lifestyle this month?
These are all important questions, and undoubtedly keep entrepreneurs up at night. How many new hires have been deferred, marketing campaigns shelved, and unnecessary worry caused by small businesses not…
