Effective cash flow management is essential for business sustainability. Entrepreneurs can adopt several strategies to mitigate cash flow problems:
Invoice Promptly: Ensure that invoices are sent out immediately after a product or service is delivered. Negotiate Payment Terms: Work with suppliers to secure favorable payment terms, such as extended payment periods. Maintain a Cash Reserve: Keeping a cash reserve can provide a buffer against unexpected expenses or slow sales periods. Monitor Cash Flow Regularly: Regularly tracking cash flow helps in identifying trends and potential issues before they become critical.