Successful business owners don’t have sleepless nights worrying about cash flow, because they manage it proactively… so it never becomes an issue. Here’s how they do it: Budget A budget is the best place to start managing cash flow. If you feel uncertain about how you’ll make the sales, don’t worry, you can start with […]
Category: Blog
Transport/Freight Business is Tough with Tight Margins…
There’s considerable pressure on transport businesses to manage finances carefully to ensure you end up with a profit. At CFO On Call we understand the issues affecting your ‘bottom line’. Here’s some ‘Key Drivers of Success’ in the Transport/Freighting Business: Laser focus on Cash-flow and Risk: Need to ensure businesses have the most effective […]
Quick Guide to ‘Work In Progress’ and its Impact on Cash Flow
When you’re in a service business Work In Progress Days (WIP Days) is a vital number to be in control of. WIP Days is the number of days, on average, that jobs are in progress prior to invoicing. One way of calculating this measurement is as follows: Days WIP = Total Current WIP/Direct Costs x […]
Do You Make This Mistake With Your Tender/Quote Numbers?
How to Calculate your Mark-up the Right Way! Costing and pricing is a key issue in tendering and quoting for work and it must be correct and commercially attractive. A common problem is not understanding the difference between what a mark-up is and gross margin is and ensuring the targeted gross margin is adequate to […]
Eight Pointers to More Successful Tenders and Quotes
If you rely on winning tenders or quotes for your business, this information shared by some CFO On-Call Partners, who have helped their clients win some very large jobs, could be extremely valuable. Time Investment Responding to tenders requires more effort than you may imagine. The information required can be time consuming and needs […]
17
Jan
How To ‘Tune Up’ Your Profit and Cash Flow
Sales, profit and cash are the key issues to focus on in business financial management. If you can get these three working right, you’re well on your way to building a sustainable business with capacity to grow. Most people focus on sales to begin. I’d like to start with profit! The reason to start with […]
21
Dec
Price right? Profit Right?
How do businesses determine their Price to customers? Some typical methods: Charge a bit less than or the same as competitors Charge a bit more than the product or service costs Charge as much as you need to earn to cover your costs i.e. Break-even Charge what you can get away with Charge what you […]
21
Dec
Your net income should exceed your gross habits!
… or Why separate your cash-flow from the Business When asked the key to financial happiness one business owner said – ‘Your net income should exceed your gross habits!’ Jokes aside, I urge business owners to keep their own finances separate from those of the business, in order to manage both sustainably and for the […]
21
Dec
You can laugh at business cash flow worries if you follow this simple plan…
If your bank balance has taken a hit over the Xmas break, you probably need a cash infusion. Rather than rushing out and borrowing or putting in your own money – you might find the cash in places you hadn’t thought of. Cash flow problems often arise due to lack of understanding of how cash […]
21
Dec
The Secret to Avoiding Business Losses
The best way to avoid business losses is to understand what your break-even point is. Obviously the objective of business isn’t to break-even, but to make a profit. Break-even is the amount of sales you need to make to end up with $0 profit. Too many businesses don’t know their break-even point and therefore don’t […]