How To Build A Cash Pool

Posted by Steven Teo under How-To Guides,
July 29, 2007

cash%20flow.jpg

Businessknowhow: Although your income statement might show a healthy profit, it doesn't amount to a hill of beans if you have no cash flow.

Cash flow represents the amount of money coming in to your business through services rendered and products sold, and money going out to cover expenses and production costs. Your primary responsibility as a home-based business owner is to ensure the flow is consistent with more money coming in than going out so a pool starts to form to hold the overflow.

Integrate these seven simple rules to your operating strategies and enjoy the benefits of a steadily growing cash pool.

1. Request payment prior to delivering your product or service.
2. Pay every bill on time to avoid late payment charges and earlier only if special payment discounts apply.
3. Deposit payments as soon as you receive them.
4. Use a business credit card whenever possible for travel, meals, and minor expenses.
5. Create continuity sales.

Build A Cash Pool For Your Home-Based Business [Businessknowhow]

0 Comments

Comments

Add your own comments

What next?

Digg it

Save This Page

Subscribe to GetEntrepreneurial.com

Leave a comment

Next Article: How to Soup Up Web Site Content »

Previous Article: How To Network Easily »

Steven Teo is a GE Network Expert. View Steven Teo's profile or read more articles from Steven Teo. Learn more about the GE Experts Network.

Have an expert opinion on issues entrepreneurs and small business owners face everyday? Join the GetEntrepreneurial.com Experts Network and share your expertise with the community!

The new GE Experts Network is inviting seasoned entrepreneurs and small business owners to come on board and contribute small business advice to our community of aspiring entrepreneurs. If you have an effective way of generating sales or you know how to use social networking to connect with your customers, join us in providing wider entrepreneurial content that would benefit small business owners worldwide.

Click Here to Learn More >>

How to Grow your Business During Tough Economic Times
How To Go Easy On Filing Tax
How to Evaluate a Franchisor’s Training Program
Franchisor Support: What can you expect from your franchisor?
Star Power: How to Hire a Celebrity Spokesperson
How To Be Super Productive
Successful Business Decision Making

This article was posted to the category: How-To Guides. Click here to read more articles in this category.

Ooh Local Activities » If you can find and do great, local stuff at home, why not do great local stuff that’s run by local people...

Necktie Reuse » New Startups: Narwhal Company is the inspirational idea of an everyday person that was looking to move away from the 9-5 lifestyle...

Dog’s Collar Comes with Tweets » "Puppy Tweets" dog’s collar allows dog owners to follow their dog on twitter. This plastic tag (introduced by Mattel), comes equipped with...

Friend of Trends » Trend Friend is an online (and smartphone accessible) gift idea database that allows users to quickly find the trendiest gifts based on...

Need more brand new promising business ideas and innovations around the world you wish you'd thought of? Visit CoolBusinessIdeas.com now!

Ever wanted to be the CEO of your very own Starbucks or Amazon.com? Fire your boss and be your own boss? Now you can, with BIZNESS! - the free biweekly business newsletter about new business ideas, opportunities and innovations from around the world. More than just new business trends, BIZNESS! helps the aspiring entrepreneur (you!) with small business advice, business tips, and entrepreneur resources and opportunities.

Subscribe for free now!