How so? Because the entrepreneur is working so hard that he doesn’t have the time to cover all business aspects, and cash management comes ‘way down in the list of most small companies’ priorities’. At least till the till goes dry even as bills pile up.

“Think cash,” exhorts Dalton. “Think cash is management practice, not management theory. It’s a proven method of running a successful business. It’s about going back to basics.”

In simple, you must remember three things: get your money in quicker; make better use of that money when you get it; and don’t pay it out too quickly. “Whatever size of budget you manage, these principles are key.” And your business can be ‘a cash generator’.

What to do if cash flow is negative? First, compute the sales that you need each day to cover your overheads. “Very few companies actually relate their sales to a daily figure, and this is essential if they’re going to survive.” After you know the specific daily sales figure, the next stage, according to Dalton, is to work out what you need to do to reach it — for example, how many calls do you have to make to get the required number of sales.

A big problem for small companies is the ‘hiccup’ syndrome, says Dalton. Business tends to be a bit feast or famine, with the orders coming through in batches; and “the sales graph looks as though it is ‘hiccuping’. Aiming for a daily sales figure will go some way towards curing these hiccups and making for a smoother ride.”

Handy guide that can ensure you get fewer calls from the bank manager!

What would happen if interest rates were kept artificially low? That’s no different from keeping price below the natural market, says Henry Hazlitt in Economics in One Lesson ( www.crosswordbookstores.com ). Artificial reduction would create economic distortions, with increase in demand and reduced supply. It can encourage highly speculative ventures that cannot continue except under artificial conditions, while on the supply side, low interest rates discourage normal thrift and savings.