Cashflow Chronicles
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Improve Your Cashflow with These Quick Fixes

Improve Your Cashflow with These Quick Fixes

Master Your Influx and Outflow

Cashflow Chronicles
August 04, 2023

Welcome to this week's edition of the Cashflow Chronicles, where we illuminate the path to wealth and success for entrepreneurs.

This week, we're introducing a new feature: The Cashflow Chronicles "Spotlight."

In these editions, we quickly dive into a critical topic, delivering the most vital information without the fluff. Let's jump right into our spotlight for today: Understanding Cashflow.

Here's a sneak peek of what you'll discover in less than 2 minutes:

✔️ A quick look at 'cash flow', an important money idea in business.

✔️ Explaining cashflow: money coming in and going out of a business

✔️ See how a business's money flow changes as it grows.

✔️ Learn a cool rule to help your business make more money.

✔️ Pick up quick tricks to improve your business's money flow.

Let’s get started.

When you dive into the entrepreneurial world, there's one term you'll hear again and again:

Cashflow.

Here's a simple breakdown:

(1) Cash Inflow

(2) Cash Outflow

Let's crack these open:

Type 1: Cash Inflow

This is the money that's flowing into your business.

• From your customers buying your products or services

• From investors who believe in your vision

• From loans you might take to boost your business

These are your business's lifeblood.

Just like a waterfall nourishes a lagoon, consistent cash inflow fuels a thriving business.

Type 2: Cash Outflow

This is the money that's flowing out of your business.

• To pay for your products or services

• To pay your employees

• To pay for your office or any equipment

These are your business's expenditures.

Cashflow stages:

In the early stages of your business, you might see more cash outflows (Type 2) as you invest in your product or service. But, as you grow and attract customers, you should aim to increase your cash inflows (Type 1).

The Cashflow Success Principle:

When managing your cash flow, choose the strategy that maximizes your CASH INFLUX and works your CASH OUTFLOW.

Your actions put you in a position where your business is more likely to thrive.

Cash Outflow aka expenses are like fertilizers: they enrich the soil of your business, setting the stage for a bountiful harvest.

There are many ways to optimize your Cashflow:

• Keep a close eye on your expenses

• Invest in marketing to attract more customers

• Negotiate favorable terms with suppliers

• Delay outflows and expedite inflows

To recap the two types of cash flow:

• Type 1: Cash Inflow

• Type 2: Cash Outflow

Knowing the ins and outs of your cash flow is crucial for your business's health and growth. Stay tuned for more entrepreneurship tips if you found this helpful and learned something new!

AI Update of the Week

Trezy.io is a company that uses AI to help small businesses manage their money. Trezy's platform looks at bank statements, receipts, and invoices to show businesses how much money they have coming in and going out. Trezy can also predict how much money a company will have.

Trezy recently got €3 million in funding to help them grow their AI-driven platform. Trezy wants to help small businesses in France, the Netherlands, and the UK. They also want to help businesses in other European countries in the future.

Trezy is a good tool for small businesses because it can help them keep track of their money. This can help businesses avoid problems like insufficient money to pay their bills.