CUSTOMER RELATIONSHIP
FOR SMALL BUSINESS
MARKETING AND MANAGEMENT
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Relationship Marketing is key to your business
strategy. Use these resources to learn why it is important and
how you can improve the service you provide your customers and
clients.
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Cash Flow Management
By Susan Ward
Cash flow management is the process of monitoring, analyzing,
and adjusting your business' cash flows.
For small businesses, the most important aspect of cash flow
management is avoiding extended cash shortages, caused by having
too great a gap between cash inflows and outflows. You won't
be able to stay in business if you can't pay your bills for
any extended length of time!
Therefore, you need to perform a cash flow analysis on a regular
basis, and use cash flow forecasting so you can take the steps
necessary to head off cash flow problems. Many software accounting
programs have built-in reporting features that make cash flow
analysis easy. This is the first step of cash flow management.
The second step of cash flow management is to develop and use
strategies that will maintain an adequate cash flow for your
business.
One of the most useful strategies for small businesses is to
shorten your cash flow conversion period so that your business
can bring in money faster. You can read five specific ways to
do this in my "Close The Cash Flow Gap" article.
Also Known As: Managing cash flow; improving cash flow.
Common Misspellings: Cash flow managment
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