How to Get Through a Period of Negative Cash Flow
Cash flow in the red? It happens to all of us. Here are some tips to get you through the lean times: No matter what you do, and how careful you plan, chances are that there will be times where you end up spending more than you earn in your business. In other words, you're going through a period of negative cash flow. What's important is how you deal with it! Build Your Safety Net An ounce of prevention is worth a pound of the cure. The same holds true for cash flow problems. You won't have to worry about generating more income if you have a bit of a financial buffer in the bank account. Think about your operating expenses and then come up with a figure that would help you make it through a "Cash Flow Drought". Set aside 2 to 5 percent of your monthly profits to build up that safety cushion. Quick Solutions You don't want to burn through the savings you've set aside too quickly. As soon as you start to notice that your expenses are higher than y...