The formula for improving your cash flow is a simple one. In fact, Inc. magazine managed to boil it down to just one sentence: "Collect your receivables as fast as possible and slow down your payables without jeopardizing your relationship with suppliers."
Like many things in life, this is easier said than done. However, if you follow the financial tips offered by the news source, streamlining your cash flow should seem significantly less of a challenge.
The first tip seems obvious – make sure you know where you stand with regard to cash flow, and draw up a realistic financial plan that lays out the blueprint of what's likely to happen in the future.
"Too many companies get blindsided by unfavorable movements in cash flow that are predictable if they really sat down and thought through it," Paul LaRock, a principal at consultancy Treasury Strategies in Chicago, told the news source.
It's important to be aware that as your revenue grows and you take steps to expand your company, your expenditures will also rise – for example, you might increase your workforce or take in more inventory. Be prepared for those extra expenses and map out a timetable in advance for when you're likely to see a return.