✦ Cashflow is the lifeblood of your business.
1. Not enough red blood cells
Red blood cells are the cash coming into the business from profitable sales.
A sale isn’t completed until payment has been made.
Can you improve your margins? If you discount your prices, what effect is that having on your margins? How much more do you have to sell to get the same profit?
Can you collect the money owing to you sooner? Are you invoicing promptly? Are your terms of trade clear? Are there other products or services you can add? “Do you want fries with that?”
2. Haemorrhaging
Am I paying the people I owe money to earlier than I need to? Am I paying cash for equipment that I should be financing over its expected period of use? Have I got the structure of my business right?
3. Arteriosclerosis
Where are the blockages? Are the people who owe me money paying too slowly? If so, why?
4. Too many white cells
If I’m selling products then I need inventory. But am I overstocked? I worked with one business which had purchased at least 4 years’ worth of stock because the purchasing officer had been told the wholesalers were going to increase their prices.
These are just some of the areas businesses can look at to improve their cash flow.
How to start?
I am offering a no obligation one hour complimentary consultation* to 4 businesses this month to look at ways to improve their cash flow*
Email me for my cheat sheet – 25 Steps to take to improve my business cash flow
As always the advice in this article is general and you should seek advice from a professional advisor on your circumstances.
* Valued at $250.00
MICRO BUSINESS FORUM
Join a networking organisation. The Micro Business Forum in Port Macquarie is made up of small businesses that encourage and support members.
The Micro Business Forum in Port Macquarie is a friendly not for profit association made up of small and micro businesses and provides networking and training at its meetings. Very often in small businesses we’re working by ourselves. We learn and share in a friendly, fun environment.
At the AGM in August I was elected President. For me the Micro Business Forum is important because it provides small businesses with practical advice and information we can use in our businesses straightaway.
Contact John Clarke, Success Tax Professionals
a/ 5/124 Horton Street, Port Macquarie, NSW 2444, Australia
t/ 0481 039 851
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