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Article: Go with the cash flow: living hand-to-mouth is for rookies and those of you who want to lose your business, not grow it. (my way).(Brief Article)
- Article from:
- Landscape Management
- Article date:
- August 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 Questex Media Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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One of the biggest challenges facing any business is the careful management of cash flow. While difficult for all companies, cash flow management is even more challenging for seasonal businesses. The equation is pretty simple: the shorter your actual work year, the longer you must stretch your available cash. After over 21 years of facing this challenge, here are some things I've learned along the way.
Sales aren't cash flow
First, understand that sales aren't cash flow. Sales ultimately result in cash flow, but don't count it as cash until money is transferred from the customer's account to yours. Until that happens, the amount sold is really an account ...