Running a successful family-owned business involves much more than simply understanding your product or service. You face a host of unrelated variables, from evolving technologies and changing regulations to inconsistent economic growth. It can be overwhelming to attempt to make long-term strategic decisions when so much of the business world is in flux.
You cannot be expected to predict the next big innovation or legislation, but there is one simple step that business leaders can take to make planning easier: Manage your cash flow.
The first step is to understand how the items on your balance sheet are connected and how they impact the cash at your disposal. Regardless of your product or service, you want to increase the amount of cash coming into the business and/or the rate at which you are bringing cash into the business, while decreasing the amount of cash you are spending and/or the rate at which you are spending it.
For each item on the balance sheet, there are some basic strategies that can have a big impact on cash flow. Read more