{"id":89,"date":"2016-08-09T10:11:00","date_gmt":"2016-08-09T10:11:00","guid":{"rendered":"https:\/\/www.biznessvirgins.com\/index.php\/2016\/08\/09\/the-diary-of-a-biznessvirgin-dear-entrepreneur-cash-is-king\/"},"modified":"2020-02-20T10:36:00","modified_gmt":"2020-02-20T10:36:00","slug":"the-diary-of-a-biznessvirgin-dear-entrepreneur-cash-is-king","status":"publish","type":"post","link":"https:\/\/www.biznessvirgins.com\/?p=89","title":{"rendered":"The diary of a biznessvirgin – Dear entrepreneur ,Cash is king"},"content":{"rendered":"

It took losing my seed capital to understand the statement “Cash is king “.<\/p>\n

My very first business involved making supplies to companies,items supplied were taken on credit with a 2-3 week timeline for payment , most of the companies always defaulted.It took them as long as 3 months to pay up ,in some cases then, i made multiple supplies to the same company on credit . The delays never bothered me , at that time i was trading with sufficient funds so i simply treated it as a case of outstanding debts.
After a while it became difficult to expand the business, serve the few companies that paid on time ,it also became almost impossible to pay the bills within the business.<\/p>\n\n\n\n\n
\"Cashflow<\/a><\/td>\n<\/tr>\n
photo credit : www.gtmediaproductions.com<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Cash management is important to every business.The consequences of not understanding cash management in business can be disastrous, i learnt this the hard way. In few words, a business that is out of cash will most likely be out of business.
Personally,the 3 cash management habits i consciouly practice are
– paying attention to all my costs and expenses
– closely monitoring turnover and avoiding credit sales ; in my kind of business,the margins are low so its all about volumes and rate of turnover)
– collecting and evaluating data regularly; this basically lets me know how my business is doing and how to effectively focus to earn more money<\/p>\n

Here are 3 posts to give you a good understanding of cash management in business<\/p>\n

1) Dealing with cash flow problems in business https:\/\/biznessvirgins.blogspot.com.ng\/2016\/06\/business-clinic-dealing-with-cash-flow.html<\/p>\n

2) Cost management tips for SMEs https:\/\/biznessvirgins.blogspot.com.ng\/2016\/06\/money-management-tips-for-smes.html<\/p>\n

3) Understand basic business terms for book keeping https:\/\/biznessvirgins.blogspot.com.ng\/2016\/06\/money-management-tips-for-smes.html<\/p>\n

F.O is in business to make money and F.O bears this in mind always – CASH IS KING<\/p>\n

Yours truly,
F.O (The Entrepreneur)<\/p>\n\n

<\/div>","protected":false},"excerpt":{"rendered":"

It took losing my seed capital to understand the statement “Cash is king “. My very first business involved making supplies to companies,items supplied were taken on credit with a 2-3 week timeline for payment , most of the companies always defaulted.It took them as long as 3 months to pay up ,in some cases […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[54,50],"tags":[],"class_list":["post-89","post","type-post","status-publish","format-standard","hentry","category-business-diaries","category-habits"],"_links":{"self":[{"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/posts\/89","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=89"}],"version-history":[{"count":1,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/posts\/89\/revisions"}],"predecessor-version":[{"id":644,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/posts\/89\/revisions\/644"}],"wp:attachment":[{"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=89"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=89"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=89"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}