What is that moving to a business? The answer is money. Without the constant input of flow it is impossible that there is growth. A business by more innovative that is and has as base a successful proposal but account with enough cash to generate operations will stop and will come the inevitable: closing. What’s more convenient at times where the business does not generate? The most reliable solution is the forecast. Why wait for it come times of lack? You must plan, budget and project needs to deal with these periods. The key is that small business owners are attentive to their numbers, to the way in which they are responding month after month. Establish fixed expenses and variable, count with sufficient organization for not being unprepared when making payments extras or earrings. Irreparably if no forecast will happen that money will be scarce and business will go straight to bankruptcy.
What is the formula of? the prevention? The flow of money to the inside of the company can be controlled through a budget for cash flow that should always be active. It consists of a simple process that allows to predict the capacity of business to generate more revenue than expenses. If you have good control over entries and exits of money will get:-better management of money and higher profitability of the enterprise – Control of receivables owed by customers – compliance with payments to suppliers – have enough flow to produce business owners must be attentive to your sales plan. The information will enable them to know how much will spend, if more employees, vendor payments, as well as the administration costs of the business will require. Do you control your cash flow?