Course: Getting strategic with cash flow
Part 1
6 minute read
Outflows
What flows in must flow out. Cash outflows are every bit as important to your business as inflows. They're what enable your business to operate and grow.
The same three categories apply.
Side 1 of 2
OPERATING
The core of
your business
Side 1 of 2
- Supplier payments and shipping costs for inventory and raw materials
- Payroll and taxes
- Technology and professional services
- Marketing
- Rent and utilities
Side 1 of 2
INVESTING
The assets of
your business
Side 1 of 2
- Purchase of equipment
- Purchase of property
- Purchase of another business
Side 1 of 2
FINANCING
The support system for your business
Side 1 of 2
- Loan repayment
- Payment of distributions or dividends
- Stock repurchase
- Cash buffer (we’ll get to that in chapter 2)