Cash Flow Tips
“Webb Way” of Cash Flow Management
- Cash Flow management is your business- give it top priority – including a 13 week projection updated daily
- Cash shortages are symptomatic of deeper issues – determine those and resolve
- All businesses have lean times – have Cash to weather the storm
- Establish and maintain a valid Price Model
- Minimize the days in the Cash Flow Cycleh
- Understand the value of cash v. cost and the decision points
- Customers provide profit when they pay you – make sure you don’t pay them
- Vendors are a source of credit if you maintain the correct terms
- Have a great banking relationship – but don’t rely on it exclusively
- Maintain financial flexibility – avoid restrictive/exclusive contracts and terms
