A group of intermediaries within our nationwide network of advisers (The Business House, Inc) has released a strong recommendations list on how to increase small business cash flows.  Following these tips can most certainly boost a company’s business valuation.  Below is a recap of the key points:

Cash Flow is KING:    Cash In - Cash Out = Cash Flow

1. Organized Record Keeping (we harp on this topic in other posts) 
2. Collect Money and Fees Upfront
3. Collect Accounts Receivable
4. Audit All Expenses Yearly
5. Extend Supplier & Vendor Debts
6. Examine Employees & Make Personal Cutbacks
7. Review Capital Assets
8. Decrease Non-necessary Spending
9. Inventory Management & Transportation Costs

Every good business owner knows that cash flow is the life blood to their company’s existence.  When positioning a company for sale, positive cash flow is critical in determining a company’s fair market value.  For specific breakdowns of each area listed above, please click the link provided above. 

Know your value.  Know your business.

Added on 05/13/2009

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