Tip #125: 4 Ways to Demonstrate Your Business Has Cash Flow

tip 125: 4 ways to demonstrate cash flowQualified buyers are going to put a lot of thought into how much revenue they can safely anticipate once they take over. It’s important to show a history of healthy cash flow that extends into the future.

Repeat transactions show that your services deliver, and that your buyer will be inheriting a solid base of loyal clients. If you have written contracts with those clients, you’re proving a future of business success.

4 Ways to Demonstrate Healthy Cash Flow (From the Past and Into the Future)

  1. Keep a record of recurring revenue, and have clients sign contracts when appropriate. The record will show a history of business success, and signed contracts will secure a successful future.
  2. Be prepared to present business financials that show business health. Click here to learn the 3 business documents that are like a report card for your business.
  3. Make sure the business looks good on paper. No matter how healthy your profits are, if you can’t provide evidence to back it up, they don’t mean much.
  4. On the other side of the coin, make sure you portray your business honestly. Just like healthy cash flow doesn’t help you out if you can’t show it on paper, profits shown on paper don’t help if they don’t represent reality.

Help Your Successor See a Bright Future

Following these 4 tips will help put your buyer at ease as they think about themselves taking over and running your business. If you need help getting things in order, don’t hesitate to contact The Bridlebrook Group.