Poor Cashflow: The Seven Key Causes of
Poor Cashflow: The Seven Key Causes of
Poor Cashflow: The Seven Key Causes of
POOR CASHFLOW
STEPHEN SIMPSON
CASHFLOW HQ © 2021 ALL RIGHTS RESERVED
Every business owner knows the importance of cashflow, it is the
lifeblood of a business after all, however that does not mean that it
is easy to manage.
Improve
It
Understand Manage
It It
The third step is to look at how you can improve cashflow in your
business.
Happy reading.
Carrying stock for too long means full shelves but an empty bank
account. This is no different if you’re a service provider with work in
progress that is yet to be billed. Reviewing your stock ordering
systems and stock control processes (to name a few) will identify
strategies to ensure cash hits the bank sooner.
Our gross profit margin is what is left from sales value after variable
costs are deducted. There are a large number of strategies that you
can implement to increase your margin, such as focusing on rework
and wastage, reducing stock shrinkage and improving team
productivity, just to name a few.
If the current sales levels don’t support overheads and other cash
demands on the business, then the business is not currently viable.
If in high growth mode, a financing plan will be necessary. If not, we
need to consider how we will grow sales. To grow sales we need to
focus on customer retention, generating leads, improving sales
conversion, customer transaction frequency and pricing strategies.
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