What is your best advice for small business owners when it comes to managing their cash flow?
I've been in the business world for a few years now and I've seen the same mistakes made over and over again. When it comes to managing their cash flow:
1) Know what your expenses are.
This one is pretty obvious, but it's something that people often forget or ignore. If you're not tracking expenses, it's going to be nearly impossible to have a handle on your spending habits or predict how much money you'll need to keep the business afloat each month.
2) Make sure you're collecting from customers on time.
If you're waiting for payment, don't wait too long! It's easy for bills to get lost in the shuffle of everyday life—and if that happens, it can take months (or even longer) before you see any money coming back into your account. The best way to avoid this problem is by making sure payments are due on time and follow up immediately if they aren't paid as promised (or at least within 30 days).