MANAGING A HEALTHY CASH FLOW

As part of an emergency initiative to address members’ growing concerns over maintaining cash flow, SEMA’s Street Performance Council hosted “Manage Your Cash Flow During Challenging Times,” a webinar presented last Thursday by Tom Shay of Profits Plus.

Shay emphasized the importance of realizing that profit does not equal cash. Of all businesses that fail, Shay stated that 54% show a profitable income statement. Cash flow starts with beginning cash, factors in profit or loss, adjusts for changes in receivables, payables, equipment and inventory, and then results in available cash. 

The first step in managing your cash flow is to build a profit and loss statement. Members were directed to www.profitsplus.org, which provides downloadable PDF files that provide assistance in creating profit and loss statements, balance sheets and budgets.

Shay also advised members against dropping advertisement. As all economic downturns are cyclical, he warned that reinstating your reputation and image once the climate has lifted could be extremely challenging.

To download the full audio or PDF version of this webinar, click here.

Don’t miss the following upcoming webinars:
•    “SEMA Show: Money Well Spent For Your Business” Thursday, June 12, 2008 10:00 a.m. (PDT).
•    “Best Practices and the Future of Email as a Marketing Tool” Thursday, June 19, 2008 10:00 a.m. (PDT).