Kickstarting your cashflow with that extra 2%

Great news in last night's Budget that in 2012 small business will benefit from a reduction in their company tax rate.
The hope is that the drop in rate from 30% to 28% will give you some extra funds to throw back in to your business.
After all, cash flow is probably one of the biggest stresses of owning a small business.
So how can you best use that 2% for a cash flow boost?
In The Small Business Success Guide I outline the best ways. Here are a couple of tips:
* First, do a cash flow forecast. Dr Graham Godbee of the Macquarie Graduate School of Management, who I interviewed for this chapter in my book, is a big believer in these forecasts. Simply, they look at how much cash your business has access to (now and in the future) and then how much cash it takes to keep your business operating on a daily or weekly basis (wages, rent, consumables and utilities, both now and in the future). Make your forecasts as accurate as possible, by taking into consideration what would happen if your sales increase, or you buy new equipment, or if your costs rise.
* Once you've done this forecasting, you'll have an accurate picture of how your business sits in terms of its cash flow, both now and in 2012 when you get that extra 2%. Then you'll be able to accurately work out when will be the most effective time in your business cycle to make the most of it.
Don't waste the opportunity that this extra cash will give your business.
You've got time to plan it wisely.
Margie