� Important Cash Flow Rules
� Dokeep Cash Flowbudgets up to date � Docompare forecast against actual figures and monitor these results regularly � Do keep controlling costs while pursuing sales � Do check and monitor stock levels regularly � Do cost out the expense of securing new customers and / or members . That is , marketing costs .
� Dofocus on receiving payment for sales including memberships � Doavoid unnecessary or excessive expenditure � Doarrange further financing , before you will need it !
� Don ’ tassume payments will be received on time
� Don ’ ttie up excessive cash in working capital or unproductive areas
� Don ’ t overtrade by accepting orders you cannot finance
� Managing Cash Flow
Remind the participants to :
1 . Populate , monitor and revise the Cash Flow template ahead of each session and report results to the mentor and participants at each session .
2 . Identify possible short-term fluctuations and account for them as they may not show up in the weekly or monthly budgets .
3 . Develop warning processes to identify where delays or unexpected changes could cause the social start up to run out of cash .
4 . Be prepared to trade off profitability and / or other enterprise objectives when your Cash Flow position is , or may become , critical .
5 . Minimise the amount of cash owed to the social start up by restricting credit periods or factoring debts ; invoice promptly and follow up payments vigorously .
6 . Generate income from short-term sales by offering incentives to bring forward purchases and discounts for cash payment .
7 . Be prepared to turn down orders if you cannot finance them ; negotiate deposits or stage payments for large orders and long-term contracts .
8 . Cut unnecessary costs and shop around for competitive prices ; negotiate generous payment periods and short delivery lead-times .
9 . Use a stock control system to minimise cash tied up in stock .
10 . Assess the Cash Flow position before committing to any new expenditure or increases in overheads ; consider using leasing to finance assets .