Crucial cash flow tips for startups

avoid_startup_cash_flow_shortage_and_business_failureIt is known that one of the biggest challenges of making your startup a success is to be able to manage your cash flow efficiently, especially in the early days.

A healthy cash flow is paramount to keep the company afloat, to grow and achieve success.

The team at Startup Direct Top have prepared these tips for good cash-flow management:

Understand the principles! There’s inflow and outflow of cash!
– when outlaying cash, pay when before the payment due date, but not prematurely
– incentive debtors to pay rapidly

The humdrum. Cash flow day-to-day management
– avoid unplanned cash outlays
– document cash-flow projections and stick to them
– avoid short-term cash flow shortage and stay on top of monitoring your money inflow and outgoings
– avoid unplanned cash outlays

It’s a risky business
– short-term cash flow shortage, avoid it by staying on top of your money inflow and outgoings
– be aware of reinvesting all the money back in the business as it takes a healthy cash flow to pay wages & bills
– be cautious about storing too much money in inventory or stock
– be aware of unanticipated expenses and emergency and always set a budget aside for contingency
– be conservative in your planning and cash flow forecast as sales volumes can be vulnerable to outside factors
– the faster your startup grows, the more cash will be required to develop the business, new products/services, hiring additional staff. These are all additional costs you need to account for.

Find cash flow management templates online. Startup Direct offers free cash flow forecast templates, please email us at if you would like us to send you one. Don’t be afraid to ask a mentor to help you with your cash flow forecast, they can be tricky. Once you crack your cash flow, you’ll be on track to accelerate your business and achieve startup success!