Cash flow is the movement of cash
through your business
that results from its day-to-day operations
Sound cashflow management is vital
to helping your business run smoothly
Say you run a bakery, like Sally
Money comes in from the sales
of her goods and services
And goes out as she pays her expenses
like suppliers and employees
She keeps her business and personal finances separate
which gives her a good head start
on achieving a clear line of sight to her cashflow
With her cashflow well-managed
she has greater control over her business
and finds opportunities to grow
such as hiring more staff
or expanding her range of products and services
If Sally were to find herself
with a cashflow shortfall however
it could result in her employees
suppliers or bills not getting paid
Which can impact her business relationships
and even her personal finance
So remember, take care of your cashflow
to keep momentum going for your business
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