Business Growth Accelerator
How to Use a Cash Flow Projection
- A negative figure means the business will run out of cash
- To mitigate:
- Follow up with credit customers to ensure they pay on time
- Negotiate longer payment terms with suppliers
- Sell unnecessary assets and equipment
- Postpone purchases
- Consider adding cash from outside sources
- A positive cash balance can be managed in the following ways:
- Deposit in a savings account
- Invest to earn extra income
- Cash reserves should be neither too much nor too little.