Cash Flow Matters...
By: Tony Busch
"Cash Flow Matters..."
March 9, 2005
Welcome to the first newsletter from Priora Cash Flow Management, LLC named "Cash Flow Matters..." This is an appropriate name because cash flow does matter.
"Cash Flow Matters..." for maintaining financial performance, improving the financial performance, determining the break even point, reviewing and upgrading pricing of products and/or services, capital acquisitions, and communicating the performance of the company to the lender. There are many more valid reasons to budget and manage the cash flow of a business. We will touch on these and other reasons in future issues of "Cash Flow Matters...." The number one reason most companies fail is because the cash flow was not properly and sufficiently budgeted and managed.
The business owner must pay close attention to the cash flow of the company on a regular basis. To ignore the adequacy of the cash flow of the business is to unnecessarily risk failure. Business owners do need to understand the basic principles of accounting and cash flow. They do not have to have an MBA. Budgeting and managing the cash flow of a business is much more effective if the business owner uses a system designed for that purpose. Such a system must also include the assumptions that support the numbers in the budget. For example, don't just put numbers on a spreadsheet and call it a budget. Write down the reasons for the numbers in the budget. These reasons will justify the numbers and enhance the chances for success.
A sound cash flow budgeting and management system can be used to communicate the performance of the business to the lender. In fact, if your lender is not interested in seeing how your business is performing on a regular basis, perhaps you should re-evaluate the commitment of your lender to your business. After all, if a business owner needs to borrow additional funds from the lender and the lender is not regularly informed about the financial performance of the business, how efficiently will that lender be able to respond to the additional loan request?
In this newletter, reference has been made to an effective cash flow budgeting and management system. Priora Cash Flow Manager is such a system. A free DEMO of this system can be downloaded to your computer from the web site www.prioracfm.com. More information about the system can be obtained at the same web site.
Or, please feel free to call Tony Busch at 920-734- 8531 or email me at tony@prioracfm.com
with any questions about Priora Cash Flow Manager.
Please note that on the Tuesday evenings of March 29 and April 5 Priora Cash Flow Management, LLC will present a three hour workshop entitled "Successful Cash Flow Management Terms & Strategies." The workshops will be held at the New Horizons Computer Learning Center located at 1331 American Drive in Neenah. Seating is limited to 10 students.
Each student will have a computer to use to enter their business financial information into Priora Cash Flow Manager. The cost of this workshop is $50 per student. Additional information is available at www.prioracfm.com.
Finally, if you have any questions about cash flow that you would like addressed in future issues of "Cash Flow Matters...", please email them to me or call me at 920-734-8531. I would like this newsletter to be informative and helpful to the business owner. It is my hope that by providing you, the business owner with relevant and meaningful cash flow information and techniques, that you will find you are making better informed business decisions resulting in improved business performance.
Do you know anyone who does not want these results?
"Cash Flow Matters..."
March 9, 2005
Welcome to the first newsletter from Priora Cash Flow Management, LLC named "Cash Flow Matters..." This is an appropriate name because cash flow does matter.
"Cash Flow Matters..." for maintaining financial performance, improving the financial performance, determining the break even point, reviewing and upgrading pricing of products and/or services, capital acquisitions, and communicating the performance of the company to the lender. There are many more valid reasons to budget and manage the cash flow of a business. We will touch on these and other reasons in future issues of "Cash Flow Matters...." The number one reason most companies fail is because the cash flow was not properly and sufficiently budgeted and managed.
The business owner must pay close attention to the cash flow of the company on a regular basis. To ignore the adequacy of the cash flow of the business is to unnecessarily risk failure. Business owners do need to understand the basic principles of accounting and cash flow. They do not have to have an MBA. Budgeting and managing the cash flow of a business is much more effective if the business owner uses a system designed for that purpose. Such a system must also include the assumptions that support the numbers in the budget. For example, don't just put numbers on a spreadsheet and call it a budget. Write down the reasons for the numbers in the budget. These reasons will justify the numbers and enhance the chances for success.
A sound cash flow budgeting and management system can be used to communicate the performance of the business to the lender. In fact, if your lender is not interested in seeing how your business is performing on a regular basis, perhaps you should re-evaluate the commitment of your lender to your business. After all, if a business owner needs to borrow additional funds from the lender and the lender is not regularly informed about the financial performance of the business, how efficiently will that lender be able to respond to the additional loan request?
In this newletter, reference has been made to an effective cash flow budgeting and management system. Priora Cash Flow Manager is such a system. A free DEMO of this system can be downloaded to your computer from the web site www.prioracfm.com. More information about the system can be obtained at the same web site.
Or, please feel free to call Tony Busch at 920-734- 8531 or email me at tony@prioracfm.com
with any questions about Priora Cash Flow Manager.
Please note that on the Tuesday evenings of March 29 and April 5 Priora Cash Flow Management, LLC will present a three hour workshop entitled "Successful Cash Flow Management Terms & Strategies." The workshops will be held at the New Horizons Computer Learning Center located at 1331 American Drive in Neenah. Seating is limited to 10 students.
Each student will have a computer to use to enter their business financial information into Priora Cash Flow Manager. The cost of this workshop is $50 per student. Additional information is available at www.prioracfm.com.
Finally, if you have any questions about cash flow that you would like addressed in future issues of "Cash Flow Matters...", please email them to me or call me at 920-734-8531. I would like this newsletter to be informative and helpful to the business owner. It is my hope that by providing you, the business owner with relevant and meaningful cash flow information and techniques, that you will find you are making better informed business decisions resulting in improved business performance.
Do you know anyone who does not want these results?
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