Effective cash flow management is crucial. Although it’s a challenge and you need to be making enough sales, there are many things you can do to ensure sufficient cash enters your business when you need it to.
In tough economic times, many small businesses struggle to manage their cash flow adequately. Where they once thought they were cruising along nicely, a bump appears in the road and they are thrown off course. All business owners should undertake what the experts call a ‘stress test’ of the business and have risk management strategies in place to ensure the business survives bumps along the way.
So what does a ‘stress test’ involve and more importantly, what does it all mean?