• Wellness Business Advisor

Cash Strapped to Cash Flow

Cash flow is the oxygen of business, and it has never been more critical for businesses to have an efficient cash flow as we continue to struggle with the effects of the Covid-19 crisis.

3 key areas to focus on to improve your cash flow:

Increase Cash In

  • Review your pricing strategy

  • Increase volume

  • Create new sources of income

  • Don't delay sending invoices

  • Overhaul your debt collection process & stop acting like a bank for your customers

  • Charge late fees

Decrease Cash Out

  • Sell machinery & equipment not being used

  • Refinance

  • Upgrade inefficient machinery & equipment

  • Review your staffing mix and ensure you have the right people doing the right job

  • Improve stock control and ordering processes

  • Clear slow moving or obsolete stock

  • Renegotiate supplier payment terms

  • Reduce discretionary spending

  • Pay on time to avoid paying penalties

Monitoring & Record Keeping

  • Forecast cash flow projections

  • Monitor cash flow weekly at a minimum

  • Identify cash leaks

  • Keep you record keeping up to date

  • Outsource to a professional

For more practical tips on improving your cash flow download our guide: Cash Strapped to Cash Flow


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