How to Maintain the Cash Flow to Run a Business Successfully?
A report released by the International finance corporation (IFC) indicates that up to 35% of Indian businesses receive payments after 90 days of delivering their services/goods. A majority of the revenue remains inaccessible in the form of receivables. Partly down to the logistic and bureaucratic issues, these not only postpone critical business ventures but also affect its expansion. To maintain positive cash flow, the ratio between the gross working capital and current liabilities must be greater than 1. Here are a few ways you can maintain the required cash flow that is necessary for a successful business: Break-even point The…