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TICK |
Use this list to identify
that you have mastered the tasks of cashflow management. |
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q |
Check out the cashflow
position before committing to any new
expenditure or increases in overheads consider using other
methods such as leasing to finance assets. |
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q |
Keep on top of your cashflow
position, monitor at least weekly if not daily and revise the
budget to anticipate potential cash
shortages. |
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q |
Shop around for
competitive prices for items you want to purchase, be a good buyer. |
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q |
Cut
unnecessary costs and negotiate
generous payment periods and short delivery lead-times where
appropriate. |
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q |
Use a
stock control system to allow you to
minimise cash tied up in stock. |
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q |
Control and reduce the
amount of cash owed to you by restricting
credit periods, invoicing promptly and chasing payments
vigorously or look at factoring the debts . |
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q |
Allow for
short-term fluctuations which do not
show up on monthly or weekly budgets. |
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q |
When the cashflow becomes
critical be prepared to trade off
profitability and other business objectives to keep on track. |
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q |
Organise
additional funding before you need it,
have it on standby just in case. |
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q |
Look at generating
short-term sales income by offering
incentives, like offering discounts for cash payment, or
incentives to bring forward purchases. |
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q |
Be prepared to
turn down orders if you can't finance
them. You could negotiate deposits or stage payments for large
orders and long-term contracts, to give you cash flow. |
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q |
Sell
unproductive or assets not required and discontinue business lines
which give negative cashflow. |
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q |
Develop
warning systems to identify where
delays or unexpected changes could cause the business to run out of
money. |
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q |
Build relationships with both your financiers and suppliers
so they will extend extra credit when it is needed. |
