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Some useful financial management tips
Many people say that cash is the life blood of any business. There is a certain truth to this - but don't forget that your business could be cash rich without actually being profitable. Long term, your profitability will be determined by your sales' levels and pricing and keeping your costs under control.
Confusing cash with profit is an easy mistake to make, especially for new businesses. Profit is the difference between the price you sell your goods and services for and your total costs. Cash is what you need in order to maintain your business over the long term while you wait for invoices to be paid.
I mention this because it is a good example of how much common sense there is involved in financial management. That doesn't mean it isn't worth getting extra help. Here are a few resources that will help you with your financial management:
You may also like to buy a book called Financial Management for the Small Business by Colin Barrow, which is an easy-to-read introduction to financial management that every small business can learn from.
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