How can entrepreneurs manage cash flow effectively?
Effective cash flow management involves:
1. Accurate Forecasting: Projecting future cash inflows and outflows to anticipate needs. 2. Expense Management: Keeping a tight control on expenses and cutting unnecessary costs. 3. Invoice Management: Ensuring timely invoicing and following up on receivables. 4. Building Reserves: Maintaining a cash reserve to cover unexpected expenses. 5. Negotiating Terms: Working with suppliers and customers to negotiate favorable payment terms.