Cashflow improvement has been made a mystery over time, and has become elusive for many business owners. However, there are just 6 Keys to improving your cashflow in any business. This means you only need to focus on 6 areas of your business to make a massive improvement. So what are these 6 keys to success: improving cash flow? Area 1 – Revenue Improvement: The first step in improving cash flow is revenue improvement via a price increase or an average value of sale increase. Area 2 – Cost of Goods Improvement: A reduction in the Cost of Goods will help to improve the cash flow situation. Area 3 – Accounts Receivable Improvement: Accounts receivable, debtors e.g. money your customers owe you. Area 4 – Inventory Reduction: As with Area 3, it’s a matter of reducing the average number of days your inventory is sitting around. Sell off old stock, buy faster moving stock, get stock on consignment etc. Area 5 – Accounts Payable Increase: Area 5 is different from the rest as we actually want to increase this number. Area 6 – Overhead Reduction: Finally, let’s talk about our last key factor in improving cash flow. Reduction of Overheads / Expenses without reduction of required capabilities. To learn more about these 6 keys to success, contact me for a free coaching session by clicking HERE.
If you would like further information or you have any questions about this blog, you can email me at firstname.lastname@example.org or call 847-739-3079.