To increase your cash flow and reduce the amount of stock that you have you might need to consider how you are going to sell your stock better or what money wasting items need to be removed from your stock lists.
As a business owner it is important to carry out regular stocktakes and eliminate slow ...
Every business must deal with the collection of accounts receivable.
Having a system and procedure in place for the collection of this revenue must be established no matter what the size of the business and all staff who handle accounts should be trained in how to deal with debt collection.
Outstanding accounts can have a devastating effect ...
An effective collections policy requires formal system that ensures overdue accounts get paid.
Letting late payments languish can disrupt cash flow and harm your company’s chances of success.
To keep receivables flowing smoothly, many businesses use a series of letters and phone calls to encourage customers to pay. These communications start out friendly and progressively become more ...
This also relates to doing it right the first time. If you are able to keep up-to-date records, general paperwork and daily tasks in a systemised fashion, it will help you to reduce the amount of double handling and daily stresses in the work place.
Duplication can also refer to stock and other purchases made ...
This is a simple calculation which will determine how many sales you will need to make in your business before you start generating a profit.
The calculation is as follows:
Calculate your total business expenses.
This includes everything such as electricity, phone bills, rent, etc. This can be calculated over a week, month or longer if necessary. It ...
Negotiation can be used in business for all sorts of circumstances. For example it could be used for selling, purchasing, staff (e.g. pay rises, agreements), borrowing (e.g. loans), transactions and any others that maybe considered as suitable situations.
There are many forms of negotiation and there are plenty of techniques, they just need to be adjusted ...
With the cost of everything rising you should aim to keep your direct costs to an absolute minimum in your business.
Most businesses should aim to reduce direct costs by at least a minimum of 5% every year however 10% is consider more viable and a healthier alternative rate.
Review your material costs, labour costs, production methods ...
Many business owners put ‘cash flow’ (or lack of) down as one of their biggest challenges. And often they think the solution is to ‘get more customers’. Well, maybe.
You see, it depends on what the cash flow problem is. Let’s run through a couple of examples.
1. You’re simply not selling enough of your product or ...
As any small business owner knows, maintaining smooth cash flow requires juggling nearly every facet of a business, from staying on top of accounts receivable, to extending lines of credit, to managing inventory. The essence of successful cash flow management is regulating the money flowing in and out of your business. Increasing your cash flow ...
Cash is the lifeblood of every business and no business can survive for long without it. As Mr. Micawber in Charles Dickens’ novel, David Copperfield, so succinctly put it:
“Annual income twenty pounds, annual expenditure nineteen pounds, nineteen shillings and sixpence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds and sixpence, result misery”.
This simple ...