August 28, 2010 | 
Author Maximizing cash flow is like telling a horse to gallop. You need some idea where you’re going, and make sure you stay on the horse in the process. Depending on your type of business, you will have a few “cash crop” products or services which are natural extensions of your core business. This is nothing like the “debt collection” approach to business operations, where you have to stretch your resources to cover everything at once. Quite the opposite, it creates resources.
Cash flow generation basics
Before we cover anything else: The classic mistake of businesses trying to generate cash is to get tangled up in areas where they lack expertise, or where the new operations don’t mix well with core business. Just don’t do those things. The risks include waste of time, staff and money which could be better used where you know how to make money, and that’s not including potential losses.
Every business has a few particular products on its inventory which carry the load of the business. These are the products which make the business pay its way. They’re good sellers, they’re popular, and they are definite winners in your market. Similarly there’s always a few services which are load-bearing business operations.
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