Keeping an eye on cash flow

CASH flow is the lifeblood of any business. A healthy cash flow demonstrates that money is coming in from revenue, investments or loans, and this is being used to settle expenses including salaries, R&D (research and development) , and operating costs. Bad management of cash flow leads to bankruptcy, even if the business is profitable. Mentor John shares his advice on improving your cash flow management.

How do I forecast my business' cash flow better, especially in terms of spotting potential problems on the horizon?

This depends on how big or small a business you are. If you are small, the CEO is personally responsible for forecasting. He will ask others, especially sales people and supplies buyers, to help him. He may be able to use the principle of how to forecast cash flow for a bigger business even though he is small.