Few businesses have such wild swings in cash flow as farms do. Vegetable farms bleed cash in the winter and spring as they plan for the growing season; and it’s not until June when the cash starts to trickle back into the business. Similarly, chickens slow down in egg production in the winter; and if you don’t always have animals heading to the slaughterhouse, livestock operations also have cash flow swings. Without proper planning you will get yourself into a cash crises.
In this section, we discuss strategies for managing cash flow — from tracking your cash balance to creating weekly cash plans.
At the end of this section, participants will understand:
How to track cash balances so they always know how much they have in the bank
How to create a weekly cash plan during the lean times.
Julia Shanks consults with food and agricultural entrepreneurs to achieve financial and operational sustainability. Working with a range of beginning and established farmers, she provides technical assistance and business coaching that empowers them to launch, stabilize, and grow their ventures.
