Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Semiconductor Sector – Watch the Early Bird in 2019 - 21st Jan 19
From ASEAN Economic Development to Militarization - 21st Jan 19
Will China Surprise The Us Stock Market? - 21st Jan 19
Tips to Keep Your Finances Healthy in 2019 and Beyond - 21st Jan 19
Tips for Writing Assignment in Hurry - 21st Jan 19
UK House Prices, Immigration, and Population Growth Mega Trend Forecast - 21st Jan 19
REMAIN Parliament to Subvert BrExit with Peoples Vote FIXED 2nd EU Referendum - 21st Jan 19
Pay Attention To The Russell Stocks Index and Financial Sectors - 20th Jan 19
Hyperinflation - Zimbabwe's Monetary Death Spiral - 20th Jan 19
Stock Market Counter-trend Extends - 20th Jan 19
The News About Fake News Is Fake - 20th Jan 19
Stock Market Bull Trap? January 22 Top Likely - 19th Jan 19
After the Crash, the Stock Market Made a V-shaped Recovery. What’s Next - 19th Jan 19
David Morgan: Expect Stagflation and Silver Outperformance in 2019 - 19th Jan 19
Why Brampton Manor Academy State School 41 Oxbridge Offers is Nothing to Celebrate! - 19th Jan 19
REMAIN Parliament Prepares to Subvert BrExit with Peoples Vote FIXED 2nd EU Referendum - 19th Jan 19
Gold Surges on Stock Selloff - 18th Jan 19
Crude Oil Price Will Find Strong Resistance Between $52~55 - 18th Jan 19
Stock Market’s Medium Term is No Longer Bullish. It is Now Mixed - 18th Jan 19
SPX and Gold; Pivotal Points at Hand - 18th Jan 19
Fable Media Launches New GoWin Online Casino Affiliate Site in UK - 18th Jan 19
The End of Apple! - 18th Jan 19
Debt, Division, Dysfunction, and the March to National Bankruptcy - 18th Jan 19
Creating the Best Office Space - 18th Jan 19
S&P 500 at Resistance Level, Downward Correction Ahead? - 17th Jan 19
Mauldin: My 2019 Economic Outlook - 17th Jan 19
Macro Could Weaken After US Government Shutdown. What This Means for Stocks - 17th Jan 19
US Stock Market Indexes Reaches Fibonacci Target Zone – Where to Next? - 17th Jan 19
How 2018 Was For The UK Casino Industry - 17th Jan 19
Gold Price – US$700 Or US$7000? - 16th Jan 19
Commodities Are the Right Story for 2019 - 16th Jan 19
Bitcoin Price Wavers - 15th Jan 19
History Shows That “Disruptor Stocks” Will Make You the Most Money in a Bear Market - 15th Jan 19
What Will the Stock Market Do Around Earnings Season - 15th Jan 19
2018-2019 Pop Goes The Debt Bubble - 15th Jan 19
Are Global Stock Markets About To Rally 10 Percent? - 15th Jan 19
Here's something to make you money in 2019 - 15th Jan 19
Theresa May to Lose by Over 200 Votes as Remain MP's Plot Subverting Brexit - 15th Jan 19
Europe is Burning - 14th Jan 19
S&P 500 Bounces Off 2,600, Downward Reversal? - 14th Jan 19
Gold A Rally or a Bull Market? - 14th Jan 19
Gold Stocks, Dollar and Oil Cycle Moves to Profit from in 2019 - 14th Jan 19
How To Profit From The Death Of Las Vegas - 14th Jan 19
Real Reason for Land Rover Crisis is Poor Quality of Build - 14th Jan 19
Stock Market Looking Toppy! - 13th Jan 19
Liquidity, Money Supply, and Insolvency - 13th Jan 19
Top Ten Trends Lead to Gold Price - 13th Jan 19
Silver: A Long Term Perspective - 13th Jan 19
Trump's Impeachment? Watch the Stock Market - 12th Jan 19
Big Silver Move Foreshadowed as Industrial Panic Looms - 12th Jan 19
Gold GDXJ Upside Bests GDX - 12th Jan 19
Devastating Investment Losses Are Coming: What Is Your Advisor Doing About It? - 12th Jan 19
Things to do Before Choosing the Right Credit Card - 12th Jan 19
Japanese Yen Outlook In 2019 - 11th Jan 19
Yield curve suggests that US Recession is near: Trading Setups - 11th Jan 19

Market Oracle FREE Newsletter

UK House Prices, Immigration, and Population Growth Trend Forecast

4 Ways to Increase The Cash Flow In Your Business

Companies / SME Aug 29, 2018 - 03:49 AM GMT

By: Dylan_Moran

Companies

Business owners are always looking for a way to get some extra cash flow out of their business. The formula is simple enough; collect receivables as soon as possible and delay payables without creating friction with a supplier. Some businesses are better at it than others though. Here are four ways to increase the cash flow in your business for anyone serious about doing it properly.


1. Put Together a Solid Forecast
The first step in improving cash flow is learning more about how your financial situation currently stands and where it may go down the line. Small-and-medium-sized businesses are rarely prepared for the costs of rapid growth. More sales means having a bigger inventory and hiring more people, which is money spent upfront. A forecast could be as simple as a pen and paper one for a small company, but larger companies will want to go a little more advanced and map out what they expect to happen over the next 12 months.

2. Evaluate your Terms
If you’re having cash flow problems, then you should check to see how balanced the terms you have with your customers and suppliers. Evaluate the terms offered to customers and decide if they are working well for you. Check to see how the terms a supplier offers stacks up to other suppliers in the marketplace. Perhaps you could get a discount by paying earlier, which can help even though it sounds counterintuitive to pay sooner.

3. Payment Discipline is Key
Shortening the receivables period begins with having a solid collection system in place. How long are you taking to get paid? Do you have enough contact with customers? Are disputes identified and settled quickly? You need a solid invoicing solution on your side to ensure invoices are perfect each and every time to prevent delayed payments. There are lots of great invoicing solutions out there, including InvoiceFinancingAustralia.com.

Paying suppliers on time is as important as being paid on time by customers. It will allow you to negotiate better deals in the future and potentially increase your cash flow.

4. Segment Consumers, Suppliers, and Inventory
You likely won’t get too far if you try to tackle everything as a whole. It’s better to segment customers, suppliers, and inventory and work from there.

Assess the volatility of sales when looking at inventory. Are you putting too much money into products that don’t sell too well? Would it be worth taking that money and investing it into more popular products?

Further divide suppliers into regular suppliers and one-off buys. You have a better chance of negotiating a good deal, including better terms and discounts, with a strategic partner.

The customers are the most important things to look at. Who are your key customers? Someone isn’t necessarily a key customer because they’re big spenders. It may turn out that your biggest account is actually also your biggest money loser. Put together strategies to encourage customers to pay on time and manage those who regularly dispute invoices. The key is to provide a better service to clients.

It doesn’t have to be as difficult as you think to boost cash flow and get more money out of your current resources. Take the idea and make it a company wide policy. Get everyone in on the plan, and see what big results you get from these small steps.

By Dylan M.

© 2018 Copyright Dylan M. - All Rights Reserved Disclaimer: This is a Paid Advertorial. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules