Watch the Cashflow

It has been rightly said that the one of biggest reason for failure small businesses is (deteriorating) Cashflow. This is especially true in times like now when there is a slowdown that is imminent / happening. If billings take time to convert into cash, then it can lead to a difficult predicament — expenses continue to happen on schedule, and incoming cash slows down (even though sales numbers may hit their targets). So, keep a watch out for collections in the business, and monitor aging reports of debtors (especially those over 60 days) closely.

A couple  articles to read on this topic from More than Business and Small Biz 101.

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.