When is enough good enough?
Know your “break-even” point! By keeping this at the forefront you are helping create goals for your cash flow. Focusing on these goals can help you make decisions on how to spend start-up capital.
Always maintain a cash reserve! Every startup experiences downfalls. Having reserves helps you prepare for those downfalls.
Collect receivables immediately! Make invoices due immediately or no longer than 15 days. Follow-up on receivables to get money in as quickly as possible.
Offer discounts for early payment! Discounts can encourage people to pay early, helping increase your cash flow.
Extend payables where you can! Work with your suppliers and vendors to get the best deal possible and extend payment to net 60 or longer.