We are moving into a period of uncertain times that may impact your business. Here are fifteen actions around cashflow that may be of assistance, it is of a general nature and can’t deal with all issues. Anything relating to deferred payment schemes for taxes or other government assistance will be covered in our budget update. Some of the points may appear impractical but may prompt you take action in another way.
1. Review your Budgets and set realistic and achievable targets for the year.
2. Consider letting go of can’t pay/won’t pay customers.
3. Review debtors list and chase up overdue invoices. This is a priority.
4. Offer existing debtors alternative ways to pay e.g. by credit / debit card.
5. Make sure your terms of business contain explicit payment terms e.g. consider changing payment terms to upfront payment if appropriate.
6. Assign responsibility to one individual for invoicing and collections.
7. Agree extended payment terms with all suppliers in advance.
8. If appropriate, review banking facilities and discuss needs.
9. Put extra effort into making sure your relationships with your better customers are solid.
10. Review and flow chart the main processes in your business (e.g. Sales processing, order fulfilment, shipping etc.) and challenge the need for each step.
11. Encourage team members to suggest ways to streamline and simplify processes (e.g. sit down and brainstorm about efficiencies and cost reduction).
12. Get your members of staff involved in a discussion of likely trading conditions and get their input on maintaining revenues.
13. Review your list of products and services and eliminate those that are unprofitable or not core products/services.
14. Review efficiency of business processes and consider alternatives such as outsourcing certain activities
15. Pull everyone together and explain the business strategy and get their buy-in.
We work with business owners to build the businesses they need to have the life they want and that includes helping improve cashflow, so if this is a concern of yours, get in touch with me on 01803 296678 or email email@example.com