Profit is not the same as cash. A business can make sales on credit and still fail to pay rent.
Forecast cash
List expected cash in and out for the next three months, week by week.
Collect faster
- Ask for deposits
- Invoice immediately
- Offer mobile money payment
- Follow up overdue accounts
Pay smarter
Negotiate supplier credit terms and pay on time to keep trust.
Control stock
Stock is cash on shelves. Buy what sells.
Build a buffer
Save a percentage of revenue until you hold at least three months of fixed costs.
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