Current Business For tips and Convenient

For entrepreneurs of small and medium-sized businesses, financial planning is one important thing to achieve business success. Financial planning can minimize business risk. Some factors to consider in financial planning, among others, include:

    Positive Cash Flow
    Emergency Fund / Emergency Fund
    Income Protection (Life Insurance)
    Protection Against the Place of Business
    Pension fund
    Diversification Enterprises

On this occasion, I tried to discuss the financial plan a number of positive cash flow. What is cash flow positive? We all know that if we start and run a good business venture on a large scale, medium and small that occur in our mind is the added value of the business.

Then how to make the added value of a business? This added value can be achieved if the business is successfully manage cash flow of receipts and expenditures of the business. If the flow of revenue is greater than the flow of expenditures, the cash flow is positive, so did the opposite, if the flow of expenditure is greater than the flow of revenue, the cash flow is negative.

Cash flow of a business is like the blood of people who should not stop if it wishes to survive. Therefore this cash flow should be managed well with good. Good management is usually accompanied with a good business plan as well. Therefore, cash flow planning at the start of the business is very important. Good cash flow planning is more important than the planning estimates of profits.

If your business plan shows a good approximation, but in actual use in the middle of the road, you run out of cash, then you will never achieve your goals. So clearly, in terms of cash is crucial, more important than profit. According to Brian Finch in "How to write a business plan" business has never fallen for the loss of money; but they failed due to run out of cash to pay bills.

As an example of this failure occurs when the initial stage of business you are starting with a $ 10,000 dollar and you have to pay to the supplier for $ 1,000 dollar per month. You hope that a buyer will pay you $ 1,200 Dollars in ten months. This means that you are expecting a profit of $ 2,000. But buyers will not pay you up to twelve months. You still generate the same profit, but ran out of cash for two more months so that you went bankrupt.

From the foregoing it is clear that a positive cash flow will ease in running the business and with a positive cash flow your business will have profits all the time who eventually venture into smooth and comfortable. For ease you can ask for help from a certified financial planner in your business plan.

Here are some tips that can make your business cash flow becomes positive:

1. Treasury sells more stout than the selling of Credit

We all know that selling a lot more cash than we are selling the benefits due or credit. By selling the cash we avoid the risk of bad receivables. If sold on credit and bank interest should be taken into account the time, say no more than 30 days.

2. Require payment to the supplier is more flexible.

Flexible payment to suppliers is also very profitable for cash set. We can ask for payment 45 days to 60 days. By asking for payment to the supplier 45 days and we sell on credit 30 days, then we still have the advantage of 15 days to play our cash flow.

3. If we make early payment to suppliers, we can ask for additional discounts.

Under conditions of fast-paced, typically suppliers demanded payment earlier to regulate cash flow. When suppliers demand payment in advance and no additional discounts, the opportunity should not be wasted.

4. Do not buy from one supplier.

There should be a comparison, a minimum of two suppliers. By comparing, we can take advantage of the pattern of payments, this month let us take the goods from supplier A for payment 45 days, next month we are taking the goods from supplier B for payment 45 days as well, then our total payments to suppliers is 90 days.

5.  Establish good relationships with customers and suppliers.

With a good relationship and intense, all problems can be solved by well too, suppose a customer when the goods are sent again asking for an additional order, then we can ask the supplier to send more, even though the items we have not previously paid.

6. Monitor the accounts receivable that is due.

By using accounting software system, so we can monitor our accounts receivable to the customer and our debt to the supplier. If the existing receivables due, then we can soon collect. With good monitoring, so we avoid cash gaps.

 Taken from various sources