jump to navigation

Free Managing Cashflow Guides November 17, 2008

Posted by liverpoolchamber in Business.
Tags: , , ,
add a comment

guides_02The Department For Business Enterprise & Regulatory Reform (DBERR) has put together a handy set of guides to help you manage your cashflow.

Cashflow is critical to business survival but all too often the day to day challenge of running a business, particularly a smaller business, can mean losing sight of some of the skills for successful cashflow management. This series of guides, developed in partnership with the Institute of Credit Management, is part of a series of initiatives providing practical support to help businesses help themselves through these difficult times. They are designed to provide straightforward and speedy advice with simple checklists and top tips.

See the guides and download them here.

Beat The Credit Crunch Part III – Cash October 9, 2008

Posted by liverpoolchamber in Top Tips.
Tags: ,
add a comment

Continuing our series of tips from Freedom Coaching on how to protect your business from these economic hard times, this week we look at the all-important cash.

Step 3

Focus on cash

If you want to stop worrying about your business prepare a weekly cash flow forecast. It works.

Spend an hour every week and update it.

Many of our clients feel that they cannot predict future sales because it’s not “real”. But a prediction or estimation is better than no plan at all. When we set sales figures, they represent a target, and we have something to aim for and measure. A key thing to remember is that we see better results when we can measure them.

If you don’t already have one, we can provide you with a simple step by step weekly cash flow template. You can see our contact details here.

Seven Recession-Proof Hints & Tips

If you are already in business there are some simple strategies you can use to make your business more recession-proof:

1. Cash is King
– liquidate some assets and get rid of dead of stock. Start keeping some money aside in case the economy does indeed get worse. Invest in defensive stocks that have been known to hold their value in a recession.

2. Good Records – keep your business records up to date so that you always know how you are faring. The more robust your records are the easier it will be to move faster in the case of a down turn.

3. Speak to Your Lenders – this is the right time to keep communication lines open with the banks. The credit crunch is hitting them hard so it might also be a good idea to open talks with another lender just in case your bank pulls the plug.

4. Examine your Loans – in a recession interest rates tend to fall as the government tries harder to stimulate the economy. This is the ideal time to collate all your loans and possibly switch to longer payment terms and / or fixed rate loans.

5. Negotiate Harder with your Suppliers – ask for longer payment terms and demand quicker delivery times so that you do not need to have so much money tied up in stock.

6. Improve your Credit Control – cash flow is king in a recession so meet all your customers especially the ones that tend to pay late. Send regular reminders and statements followed by a phone call the minute an invoice is overdue.

7. Insure your Debt – in a recession more of your customers are likely to fail.

Next week, we’ll look at marketing.

Bob Evans, Freedom Coaching