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  • Published Date

    June 26, 2018
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A business can never grow faster than its cash flow allows. Growth is good as long as there is sufficient gross margin and enough caslh to fund the growth. It is almost always the case that a business experiencing rapid growth is starved of cash, whereas a long-established mature business, which experiences only modest growth, is usually an excellent cash generator. So the Golden Rule is this: You must increase your cash flow while simultaneously increasing your start followed closely behind by setting net profits. Growing businesses need more cash than the owner ever expects. So a deep understanding of the cash requirements of Call Philippa on 09 238 5939 to find out their business is critical to their successmore about understanding your cash flow. Here's some things to keep in mind: 2. Your business is not a private bank. The owner is the last to be paid. 3. Set and regularly measure a conservative target for cash. 4. Prepare, monitor and update realistic forecasts of cash requirements. There's no easy answer to managing the need for cash in a growing business. Knowing that your business can't grow any faster than its cash allows is a good and measuring cash targets. Despite our buoyant economy, we are seeing many businesses struggling with this issue. Philippa O'Mara PLATINUM 1. Not all sales are good sales where thinking powers business

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