Cash flow management is the most critical factor in an Entrepreneur’s ability to successfully grow a business. Yet more often that not, Entrepreneurs react to cash flow problems rather than actively managing this area.
Entrepreneurs need to ask themselves what metrics they are using to monitor cash flow. Are these the appropriate measures? How timely and useful are such metrics?
What type of tools are Entrepreneurs using to manage and more importantly increase the available cash in their business? Are these tools continually refined to make them effective?
Entrepreneurs would be better served to proactively manage their cash flows, or at least monitor this important area if such management is delegated to others in their organization. Don’t ignore cash management or it could become a critical issue for your business.
Ravi Patel
http://www.patelcfoservices.com
Excellent points, Ravi. How much is this task is up to the CEO and how much of this proactive process up to the CFO?
Robert, sometimes smaller companies can’t afford a CFO so the Entrepreneur (CEO) has to do it.