Tip No 2:Watch your cashflow
Think of your business as a bucket of liquid funds with cash coming in through taps of cash fees, collections of debt, additional funding and cash going out through holes from payment of bills, purchase of equipment, Payroll and owner's drawings.
It is important to anticipate future demands on your cash from tax liabilities, business growth and day to day expenses. A cashflow budget will highlight periods of negative cashflow.
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