Here’s a wonderfully insightful book about cash flow management – Small Business Cash Flow: Strategies for Making Your Business a Financial Success. While it’s not written specifically for home-based businesses, I would consider it a must read for all home business owners.
If you’re like me, no one ever really explained cash flow management to you. If you were lucky, you might have gotten a 15 minute lecture about it from your accountant. Outside of that, you may only have the vague notion that cash flow is the relationship between money coming into your business and money going out.
The author, Denise O’Berry, does a terrific job of making an otherwise intimidating topic easy to understand and very readable. You’ll find this is a great primer for cash flow management that includes topics you may not have considered in relation to cash flow – such as how to select an accountant and the relationship between marketing and your cash flow. It’s full of useful tidbits – such as how to prepare a cash flow forecast, why laying off employees may not solve cash flow problems, and hidden cash flow resources.
Cash flow is often misunderstood and the importance of it is often underestimated by small business entrepreneurs. If you’re a home based business entrepreneur wearing too many hats and wanting to gain a comprehensive understanding of cash flow concepts as they relate to your business, this book should be open in front of you.