How To Build A Cash Pool

Businessknowhow: Although your income statement might show a healthy profit, it doesn’t amount to a hill of beans if you have no cash flow.
Cash flow represents the amount of money coming in to your business through services rendered and products sold, and money going out to cover expenses and production costs. Your primary responsibility as a home-based business owner is to ensure the flow is consistent with more money coming in than going out so a pool starts to form to hold the overflow.
Integrate these seven simple rules to your operating strategies and enjoy the benefits of a steadily growing cash pool.
1. Request payment prior to delivering your product or service.
2. Pay every bill on time to avoid late payment charges and earlier only if special payment discounts apply.
3. Deposit payments as soon as you receive them.
4. Use a business credit card whenever possible for travel, meals, and minor expenses.
5. Create continuity sales.

Build A Cash Pool For Your Home-Based Business [Businessknowhow]