Get Control of Your Cash
> Know the difference between profits versus cash. You can’t spend profits.
> Positive cash flow from operations is key. Don’t rely on cash flow from investing activities (non-operating sources) or financing activities (stockholders, lenders and other stakeholders) to ensure long-term success.
> Know your customers and aggressively work your accounts receivable. Your receivables have to be current if you expect to collect them. Understand how good this valuable asset really is.
> Don't tie up too much cash in inventory. Think small, lean and agile.
> Deposit checks as soon as possible to get quicker availability and to spot potential problems earlier.
> Keep your eye on sales and gross margins. We want increased sales, but only if they add to our bottom line.
> Keep open and current relationships with bankers and other lenders. Lenders shy away from a borrower who only shows up when he/she is desperate, but look favorably on a business owner who they know and trust.