Manage your cash flow and other things will fall into place

for Small enterprises, managing their cash flow properly and keeping in mind how banks reviewed their performance were the keys to beating the recession, Alan Miltz, the director and co-founder of international financial company Inmatrix said this week.

"Get your cash flow right and manage it in a way that is approved by your bankers and a number of other factors in the business will fall in place."

Miltz was addressing small, medium and enterprise owners at the Espresso business information sessions, an annual Standard Bank networking session in Johannesburg.

He said the major steps in beating an economic downturn lay in conducting a financial health check.

"The next step is assessing how banks would review your performance. Finally, you need to make sure that you use the correct techniques available to measure financial performance."


An intimate knowledge of all the factors that could impact negatively on cash flow was a basic requirement for future success in sustainability in business.

"Knowing your business means understanding what impact a one-day, 1 percent change in price; reducing or increasing volumes; accounts receivable and payable; cost of goods sold; and inventory holding levels are having on your cash flow," Miltz said.

He stressed that entrepreneurs should focus on the major items of cash flow that were generally considered by bankers when assessing the viability of businesses and their capacity to assimilate loans and pay them back.

The Espresso took place in Cape Town on Monday and is due to be presented in Durban tomorrow.