It seems to be a perennial issue for business owners that cash flow is an issue. You’ve got suppliers on your back for payment, customers that take too long to pay… plus a bunch of other places where cash gets stuck.
Often the money in business is just in the wrong place … i.e. it’s in:
- Lost sales, due to incorrect pricing
- Lost sales due to low labour utilisation
- Lost sales, due to lack of non financial KPIs
- Excessive costs and overheads, due to lack of analysis and budgeting
- Excessive stock, due to lack of planning
- Jobs not being invoiced quickly enough and run efficiently
- Customers taking too long to pay
- Suppliers demanding payment too soon
- Lack of growth funding, due to inability to ‘tell the story’ well enough to lenders/investors
- Excessive finance costs, due to lack of negotiation and poor understanding of contracts
- Excessive taxes, due to lack of planning
The issue re the above is that the money needs to spend more time in the bank account and less time in these places.
It’s all about wastage isn’t it? Wasted opportunities due to lack of clarity and time to manage it and head off these cashflow and profit gobblers.
If you’d like to see an example of how this works in practise, download our Infographic here showing how one business found $38,000 extra cash without making any extra sales!
Or… if you’d like to know more about ‘Pay for itself’ help to avoid missing out on fantastic growth opportunities in your business, click here to speak with a CFO.