Search:

Would you like to contribute to this site? Cashflow Menu Submit an Article Submit a Tip Place your Ad Add URL Cashflow Questions? Contact Us  About Cash Flow   Projecting Cash Flow   Calculating Cash Flow   Tracking Cash Flow   Cashflow Models   Cashflow Software   Cash Flow Management   Cash Flow Strategies   Cash Flow Financing   Cash Flow Notes   Industry Factoring   Types of Factoring   About Factoring   Financing Accounts Receivables   Accounts Receivables   Small Business Funding   Types of Funding   Cash Flow Statements   Financial Statements   Cash Flow Companies   Discounted Cash Flow   Free Cash Flow   Industry Cash Flow   Cash Flow Business   Cash Flow Books and Experts   Budgeting   Personal Finance   American Cash Flow   Rich Dads Cash Flow   Cash Flow Online   Money Saving Tips

Return To Cashflow Article Archive   Search the Article Archives 6 steps to make sure your cashflow is king! By Ed Pearson, Debt Dr Cashflow, rarely understood or explained in a sentence (and sorry to disappoint but I wont try in this blog either) but every business relies on healthy cashflow in their accounts. Are you financially fit enough to meet the cashflow demands on your business? Heres a few pointers to make sure you allow cashflow to be maximised in your business: 1. Sharpen your billing process make sure you bill debtors promptly, ask creditors to extend their terms to you and offer incentives for invoiced clients if they pay you promptly. Maybe consider a percentage reduction for early payment. For longer, ongoing jobs you should always discuss the dates and amounts for payment beforehand. 2. Focus on your market expertise it can be difficult to stock and track lots of small numbers of items. If you are stuck with stock then it isnt producing returns for your business. So get rid as quickly as possible and then concentrate on your mainstream market. 3. Use credit reference agencies do check that your clients are going to be able to pay you back. The best deals in business can sometimes be the ones you walk away from! 4. Restructure your finance I often wonder how even small businesses can often have 4 or 5 lenders for cars, assets, funding etc. A review of your current situation from an independent adviser may create a saving without affecting your ability to deliver. 5. Cut your overhead costs now I dont mean staff, I mean the everyday items that you use day in day out; telephones, stationery, electricity, waste, packaging, gas..... If you save £10,000 on your bottom line in a year and you have a 20% profit margin then thats the equivalent of putting in an extra £50,000 of sales without the same inherent risks. 6. When all else fails if the above still wont be enough to stop the worry of cashflow in your business, if things seem tougher than they ought to be then talk to somebody who understands insolvency. Youll be amazed at what is available to help small business rise up again. Call Debt Dr for a chat over a coffee. Ed Pearson is a Debt Dr. He can be reached in confidence on 07970 659266 or e-mail on ep@debtDr.co.uk. http://www.debtDr.co.uk Prescribing a life without debt This article does not constitute regulated advice. Please remember that any action on financial advice should always be taken only after considering the specifics of your own situation. To find out more about Ed try, http://www.ecademycom/account.php?id=41788 About the Author: Ed Pearson is a Debt Dr offering debt help and advice to individuals and small businesses across the UK. Whilst you may love the stuff he writes, you should only ever take action once you have considered your own set of financial circumstances with a professional. This article does not constitue financial advice. Please e-mail if youd like to chat further on any area of your finances. Budgeting Worksheets

Get your Cashflow questions answered... Subscribe to our Cashflow Newsletter FREE! Your First Name: Your Email Address: Enter above security code

Home  |   Cashflow Blog  |   Ask the Cashflow Expert  |   Cashflow Archive  |   Cashflow RSS Feeds  |   Advertise  |   Sitemap