7 Tips Better Management Business

April 18, 2021by CEO

The concern of any new company lies in the good management of its cash .

We offer 7 wise advice so that you can meet the minimum of cash flow problems.

DEVELOPMENT OF A CASH PLANNER AND MONTHLY FOLLOW-UP

You must record your opening bank balance, not forgetting the expected monthly cash inflows and outflows.

You are advised to do this by using a software tool or a spreadsheet.

So you will be able to:

• Evaluate your situation;

• Examine risks and deal with problems (eg loss of a major customer);

• Track cash receipts and disbursements during the month;

• Anticipate problems and readjust (eg: delay of discretionary credits);

CLOSE MONITORING OF FINANCIAL STATEMENTS

You must examine each position for possible problems.

You will need to carefully monitor key indicators of the strength of your business, such as a change in gross margin and inventory turnover.

RELY ON GOOD RELATIONSHIPS WITH YOUR CUSTOMERS AND SUPPLIERS

It is not without reminding that good relationships with your customers and suppliers can help to release more cash.

For example, you can turn sales into cash faster by offering rebates to customers who pay their bills promptly.

Your suppliers can help you by extending the payment deadlines (note that the negotiation is done with two).

Work to improve your customer service and make sure you always pay your suppliers on time.

BE UNCOMPROMISING WITH BAD PAYERS

Do not hesitate to be tough with bad payers when it comes to recovering debts.

As a general rule, contractors must collect late invoices diligently.

When a customer does not pay, you finance their business.

FOCUS ON INVENTORY MANAGEMENT AND PRODUCT OFFERINGS

In the event that sales decline and inventories are renewed less quickly, you will have to take appropriate measures to liquidate the goods.

You will then have to analyze your product lines to see the best sales and those who occupy unnecessarily space.

Do not hesitate to call on your sales team to help reduce inventories and eliminate loss-making product lines.

PRESERVE YOUR WORKING CAPITAL WITH LOANS

Avoid as much as possible to prepay long-term investments, this will have the effect of burdening your working capital.

The loan remains the best solution to finance your projects.

Also consider the possibility of refinancing fixed assets to free up capital.

SIMPLIFY YOUR OPERATIONS AND REDUCE WASTE

You can increase the productivity and profitability of your business by eliminating:
• Bottlenecks;

• Overproduction

• Ineffective equipment and other sources of waste;

You now have the keys to better manage your business. How about taking advantage of them?

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