As the highlight/ introduction to an article I was quoted in inside Union Bank’s Business Focus newsletter about this topic says, “The silver lining of this economy is that businesses with fast access to cash may be able to take advantage of extraordinary opportunities.” In my experience, business and individuals should listen carefully to this statement, as it will undoubedly become true.
Almost every business I am aware of has significantly slowed down or curtailed capital spending, as it is typically one of the first areas to go when cash is tight. I am an advocate of aggressively managing cash in today’s economy, as those who have cash to invest will be those who succeed. Just think of this example - if your company has the cash to invest in new equipment that will help give you an advantage over the competition while your competitors do not have the cash to invest, who do you think will succeed in the long term? What an opportunity!
The article discusses cash management strategies from more of a personal perspective; however, the same concepts apply in a business. It discusses four tips: 1) Set up a rainy day fund. 2) Leverage your cash. 3) Watch for deals. 4) Schedule your outlays. To read the entire article, click here.
© Lisa Anderson 2010. All rights reserved.