4 problems with cashflow

✦ 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


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