12.1 C
London
Sunday, October 2, 2022

Business cash flow problems? Here you have to look first

Must read

Biden Visits Florida And Puerto Rico To Watch Hurricane Ian Devastation

The Federal Emergency Management Agency has prepared its largest-ever search and rescue in the wake of Hurricane Ian's destruction in Florida, Administrator Deanne Criswell...

The biological theory that explains why investors are optimistic about merger • londonbusinessblog.com

For decades, the answer to when fusion energy would come was like the punch line to an oft-repeated joke - it was always 10...

Tesla delivered a record 343,830 vehicles in the third quarter of 2022

Tesla delivered a record 343,830 vehicles in the third quarter of 2022, a sign that the Elon Musk-owned company has recovered from a slower...

Terrible September for Stocks… What About October?

The summer rally misconception has been dispelled. All those gains have been wiped off the board and now the S&P 500 (SPY) made...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

Regardless of the age of your business, cash flow is something that you as a business owner want to keep an eye on. Money is constantly moving in a business and to understand your financial health you need to know the exact amounts of money coming in and going out.

When your business starts having cash flow issues, it’s essential to identify exactly where these issues are coming from so you can address them. To help you with this, 15 members of londonbusinessblog.com Business Council explained which areas business owners need to scrutinize to discover the root of cash flow problems.

1. Do a full audit to see where the money is going

When a company’s cash flow is tight, consider whether it’s a drop in revenue or an increase in costs. Do a full check of the ledger and balance sheet to see what’s coming in and going out. Look to see what is a must-have versus a must-have and cut out what you need from the organization. If sales drop, come up with a plan to revitalize your business. † Abigail Aboitiz

2. Negotiate remaining seats with software subscriptions

Start with software subscriptions. Companies often have the option to reduce the number of seats they buy. Then negotiate the remaining seats. SaaS companies are willing and able to negotiate now. There are savings to be made from serious negotiation and a willingness to walk away if the software company doesn’t want to get involved. † Lesley HensellRiverbend Advice


londonbusinessblog.com Business Council is the leading growth and networking organization for entrepreneurs and leaders. Am I eligible?


3. Create a weekly review process

Check accounts receivable first and track anything that can be collected quickly – make this process a weekly review. Change the terms of their debtors to be due more quickly. Don’t pay bills before the due date unless discounts are available and paying early won’t negatively impact cash flow. † Cami PowellThe journey of a self-employed person

4. Cut Products and Services That Don’t Get Results

Companies often unknowingly drain excess money through unnecessary spending on products and services that once served a need but no longer benefit the company. It’s important to evaluate large and small expenses on a monthly basis and proactively cut back on expenses that don’t deliver measurable positive results for the business. † Mike CostiganMillionaire Agent Academy

5. Pick up the phone to request updates

Don’t be afraid to ask customers for an update on when to expect payment. We all get busy. Technology is wonderful, but sometimes it fails. Chances are, a late payment is just a mistake, but if there’s a more serious reason, it’s much better to engage in a dialogue to come to a resolution. Structure recurring revenue payments prior to services as needed. † Kelley PowellMacLaurin Group

6. Find the balance between spending less and producing more

If cash flow is an issue at all, we are either spending more than we earn or producing less than we could. We have to strike a delicate balance between approving costs as soon as we make money and only when we need them. To avoid unnecessary costs or under-optimized customer revenue, we must constantly monitor our revenue versus value creation. Of course, the short-term reaction can be a trap here. † Majeed HosseineyNostrum Biodiscovery

7. Check your subscription-based services

We live in a world of subscription-based services. Often companies sign up for services (or for a trial period) when they need to. Over time, the services are either unused or forgotten, while recurring billing continues to bill. It’s hard to keep track of who’s using what. Credit card statements have many transactions and often the descriptions are not obvious, leaving them unnoticed. † Daniel HDQode Social

8. Identify the sources that offer great value

Identify the sources of income that require the least amount of resources, but yield high returns. Lean into those resources while simultaneously looking for inconsistencies and debt service opportunities. † Benjie NunnCreditHub

9. Go Back to Basics

Assess your business goals and ensure budgets are allocated to initiatives that strategically drive KPIs. If you spend money without a clear purpose, your bottom line will suffer. Use as much data and analysis as possible to decide what isn’t moving the needle and rethink your approach. Then consider financing or other sources of capital to build on your growth. † Ricardo PeroSellersFinancing

10. Watch the sales cycle and include affordable products

Looking closely at the business development and sales cycle, along with incorporating a more affordable product mix, are key steps to solving the cash flow challenges. Companies with high ticket sales often face long sales cycles from proposals to negotiations before payments are made, which can lead to lack of funds. Low ticket supply with digitized, faster sales is the antidote to slow cash flow. † Udo Okonjo Fine and Country West Africa

11. Pay attention to your receivables and deliveries

In many companies, especially in professional services, many professionals are good at producing services but systematically fail to make payments. Some may also delay in completing shifts, which has the same effect. If your business has a reputation for providing great service, but does not pay attention to collections, paying close attention to this area can increase and regularize cash flow. † Afi VentourGlobal Services Inc.

12. Focus on existing customers and double their success

Not only does customer retention cost less than acquisition, but every customer is an opportunity for expansion. Technology enables customer success teams to value customers faster and drive upsell at scale. These teams improve their experience, build a more customer-centric culture, reduce customer churn and increase revenue. † You Mon TsangChurnZero

13. Maintain a positive work culture and employee morale

Cash flow issues are as constant as the changing of the tides in the business world. For important and acute issues, I highly recommend diving into your culture and looking at employee morale. Happy and safe employees lead to improved customer experiences, as well as often higher revenues through secondary offers or customer referrals. † Ben HeffronPRIZM SOLAR

14. Optimize cash outflow and inflow

For large expenditures, spread the outflow of money over a longer period. This can be done by taking out a loan to make the payment and repay the loan in eight to ten assimilated monthly installments (EMIs). This prevents you from putting direct pressure on your balance. Then start receiving prepayments from your customers. † Gaurav SharmaSaaS labs

15. Pre-billing invoices and renegotiate the company’s payment terms

Service companies must review and renegotiate the company’s payment terms to ensure that costs can be incurred more quickly. It is also useful to invoice invoices above a certain amount in advance before the work is carried out. This keeps cash flow under control and reduces the likelihood of delayed bill payments. † Tracy Nadentwelve-tone

16. Look at the business value stream

To rethink the business model, the company must focus on what is important. This may involve entering into short-term projects or initiatives that can guarantee new revenue streams. At this point, if the numbers are clear, the company may consider a financing option, loan or equity to fund new initiatives. † Taopheek BabayejuiCentres

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Biden Visits Florida And Puerto Rico To Watch Hurricane Ian Devastation

The Federal Emergency Management Agency has prepared its largest-ever search and rescue in the wake of Hurricane Ian's destruction in Florida, Administrator Deanne Criswell...

The biological theory that explains why investors are optimistic about merger • londonbusinessblog.com

For decades, the answer to when fusion energy would come was like the punch line to an oft-repeated joke - it was always 10...

Tesla delivered a record 343,830 vehicles in the third quarter of 2022

Tesla delivered a record 343,830 vehicles in the third quarter of 2022, a sign that the Elon Musk-owned company has recovered from a slower...

Terrible September for Stocks… What About October?

The summer rally misconception has been dispelled. All those gains have been wiped off the board and now the S&P 500 (SPY) made...

Is Don Lemon married? CNN, Don Lemon’s Net Worth, Husband

Who is Don Lemon? Donald Carlton Lemon was born in Baton Rouge, Louisiana, USA, on March 1, 1966 – his zodiac sign is Pisces and...