Debra Ruh, Ruh Global IMPACTįirst, shore up your accounting processes and make sure you're getting the money you're owed. We must manage and learn from our cash flow. Learn from your finances and cash flow and understand this is your business's lifeblood. Do not be naive and think it is best to be positive and hope for the best. Examine its past, present and future, and look at the future from different angles. Understand your cash flow from different angles. View Your Cash Flow From Different AnglesĬash flow is the one thing businesses must manage. They usually have the most constructive feedback. This is less common but if this is the case, you should solicit feedback from your unhappy customers who canceled with you. If your sales are slow and you have plenty of visitors, whether they are in-person or digital, you might have a design problem or a product problem. Solicit Feedback From Unhappy CustomersĬash flow problems are usually the result of visitor flow problems. During the sales cycle, nearer-term actions like pushing out payables, collecting on accounts receivable, bank financing and cost-cutting will buy time. Refocusing on sales activities, and more importantly on profitable sales, can help solve many cash flow issues. I've always lived by the motto that "sales solves all problems." Smaller companies often have a cyclical sales cycle of sell then execute. Don Daszkowski, International Franchise Professionals Group - IFPG Business owners can reach out to vendors to see if they are willing to negotiate extended payment dates. Non-essential expenses, such as premium services, marketing and advertising, business meals and unnecessary office supplies, can all go. Kim Troy, Civilis Consultingĭepending on the business and situation, a few cutbacks can be the solution to returning to a positive cash flow. Lastly, jettison unprofitable (or minimally profitable) products or services and go all-in on those that generate the most cash. Sure, you'll lose customers but not all of them. Determine which products or services you provide that no one else can, then double the price on those. First, look at ways to accelerate receivables.
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