Today AbangAbu want to discuss on a very important aspect of business. Many businesses which doing well also be effected because cashflow problems.
A healthy cashflow will keep the business floating in any situation. It is so critical on making our business is having a good cashflow. I want to share some tips on having a healthy cashflow.
C- Collect –Collect the cash fast . After every job that is done make sure you get your payment immediately . This will give the business the cash for the project. This is very critical for a new start up or new set up. Do business with those who can give you cash fast.
A-ASK– Ask for deposits for any orders that you get from customers. By asking for deposit will give you the extra cash that you might need. This will also make the customer serious about their order. Keep in mind always ask for deposits. The range is between 10% to 50%.
S-Sell– Sell off any old inventory or unsold goods that you might have. Sell it for a discounted price or at the cost price. This will give you the extra cashflow that you might need to use for next stage.Its better to get rid of old stock and get new things.
H- Have Systems- 1)System of collecting payment and issuing invoices. This is important so that there will be a way that you can track on the payment that you should receive.
2) System of credit check on the customers- This must be done to make sure that your customer have the intergrity as well the capacity to pay you. Especially for those request for credit terms.
F-Find- Find all the financing option available out there . What are the facilities that can be tapped. From Government schemes or even from banks. Have some credit facilities ready as it might be useful when you need them. Keep informed on what the latest scheme that available that will be useful for your business.
L-Leverage- Leverage on the credit terms available from your vendor. Always pay on the last due date. This will keep your cashflow healthy. Talk on longer terms with your vendor as this will give you the time to sell the products and than pay from the sale. This is a good strategy for those who are really have tied cashflow.
0-Offer- Offer discounts for those of your customers who pay cash and make prompt payment. This will make them to pay cash and fast.
W-Watch- Watch your business expenses carefully so that your expenses is withing the budget. This is critical as many business owner will use the cash available for their own expenses . PLEASE DO WATCH THIS.
With all those tips i am sure many of you will start to implement it in your business. I wish all businesses to have healthy cashflow and prosperous so that it can provide greater services for the people.
See you all in next tips.
I would also encourage my readers to comment on this tips. You can also write in your tips too.