Cash Flow is the lifeblood of a business. These seven tips will make a significant difference in your business

1. 7 Tips on
SMALL BUSINESS
CASH FLOW
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2. Good CASH FLOW
is the life blood of
any small business.
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3. Without it, business owners struggle
constantly to find enough resources
to keep the business going
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4. Tip 1. Get a weekly copy of your bank statement
Many business owners
do not ever review their
bank statement and
leave it up to their
book keeper to do all
this for them.
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5. As a result it’s ‘out of sight - out of mind’ when it
comes to the awareness of cash and they only
look when a crisis occurs.
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6. Tip 2. Review your invoicing procedures
If you are not efficient
in getting invoices out
to customers then
you’re unlikely to get
money back from
them efficiently.
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7. You send a message to
your customers with
your invoicing
procedure so if it is
haphazard or late your
customers are likely to
take the same attitude
to paying you
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8. Tip 3. Review your terms with your customers
What terms do you sell on?
Do your customers adhere to those terms or just pay
when they feel like it?
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9. When was the last time you checked the actual
terms in your business or reviewed them with
your customers?
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10. Tip 4. Clean out old inventory
Many business
owners hate the pain
of dealing with old
inventory because it
usually represents a
mistake which can be
hard to own up to.
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11. As a result the inventory builds up and ties up
money in goods sitting doing nothing
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12. Tip 5. Review your payment procedures
Do you have a
disciplined and
formal method
of paying your
suppliers?
Do you time your payments with receiving money
from your customers?
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13. Do you wait for suppliers
to call before paying?
Are there particular days
of the week or times in
the month when you
make payments?
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14. Tip 6. Review your terms with your suppliers
When was the
last time you
negotiated
terms with your
suppliers?
Do the terms with your suppliers match the terms
you give you customers?
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15. If you buy on 30 days
and sell on 60 days
then you will always
have a cash flow deficit
particularly if your
business is growing
strongly
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16. Tip 7. Don’t focus solely on making a profit
Most business owners are completely focused on
making a profit until they run out of cash
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17. This means focused
on the costing and
pricing without
considering their
working capital
and how the money
flows in their
business.
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18. While making a profit is
important, having
money in the bank is
more important because
when there is no more
money you’re broke!!
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19. SEVEN TIPS ON SMALL BUSINESS CASH
FLOW
Tip #1 - Get a weekly copy of your bank statement
Tip #2 – Review your invoicing procedures
Tip #3 – Review your terms with your customers
Tip #4 – Clean out old inventory
Tip #5 – Review your payment procedures
Tip #6 – Review your terms with your suppliers
Tip #7 – Don’t focus solely on making a profit
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20. This presentation has been brought to you by:
An online global resource centre and membership
community dedicated to helping small business owners
succeed and prosper
www.onesherpa.com
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