Cash flows into Kenya. Feeling left out? Money Matters With Mel Weekly Newsletter — Issue #21

Cash is king. Thanks to the disruptive season we are in, many suppliers are insisting on payment on delivery of goods and services. Payments constitute the revenue lifeblood flowing into the business. Profit is derived from topline (before cost of sales and tax deductions) revenue. Topline revenue should never be confused with business owners compensation.

Cash flow refers to the movements of money into and out of a business. It is broken down to cash flows from operations, investing, and financing. Operating cash flow includes all cash generated by a company’s main business activities. Investing cash flow includes all purchases of capital assets and investments in other business ventures. Financing cash flow includes all proceeds gained from issuing debt and equity as well as payments made by the company. Free cash flow, a measure of a company’s profitability, represents the cash a company generates after costs.

The aim of every business owner is to have a positive cash flow in all the various cash flow segments.To increase profit/free cash flow you cut down costs and increase revenue. In the background control spending, save, invest and get out of debt.

These are volatile, uncertain, complex and ambiguous times we live in. The reactions of most people mirror the times. Your customers are price sensitive, take time to decide and can be very vague about their critical pain points and real needs.As the business owner you need to be pro-active and decisions should be shaped by your cash flow projections and faith that with proper planning and execution you will turn over a profit.To schedule a free 15 minute videocall to discuss your free cash flow clickhere. I will be back to you within 24 Hours.

Kenyans in diaspora in business here or there with a dream of retiring to the home country will want to read this.

Originally published at https://www.getrevue.co on June 19, 2021.