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Contributed post.

Every business aims to keep its cash flow positive to survive and grow. How does a startup business get through tough times, when cash flow is negative? The answer is in proper cash flow management.

How to manage cash flow for a tech startup

Image credit: nattanan23 on Pixabay

Here are five ways to manage your cash flow and finance your cash-strapped business.

What to Do If Your Business Has a Cash Flow Deficit

Being cash-strapped simply means having cash inflow that doesn’t meet the obligations of cash outflows. It’s inevitable in the early stages of any company, but the goal is to minimize the time your business is operating with negative cash flow, and conserve cash as effectively as possible until significant revenue starts coming in.

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Guest post by Mathew Jade.

Running a small business has more than its fair share of risks. Clients can be late in paying. Competition is fierce, and as more and more people start their own businesses or try to make few extra dollars in the gig economy, it just gets tougher.

You can hit a surprise slowdown in business due to holidays, sudden shift in economic trends or expectations, changes in government policy, the loss of a large customer, or any of a hundred different reasons. Sometimes, deals you expect to close instead evaporate. You may need to spend effort and resources on business development activities with a highly uncertain return.

Cash flow is frequently one of the major problems for small to midsized businesses. Businesses may need fast cash in order to take advantage of an opportunity or simply to fund growth ahead of revenue.

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