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Cash is
KING
DARRYN LE GRANGE TELLS US HOW YOU CAN FIND THE CASH IN YOUR BUSINESS
C
ash is the lifeblood of every business, and no cash = no business. If your business suffers from poor or inconsistent cash flow, it is important to understand the underlying reasons so that you can take the necessary remedial action. Here are some of the top reasons for poor cash flow, and some solutions: 1
Insufficient Sales
(ie: Loss Making) • This is where your sales or gross margin is insufficient to cover your fixed overheads, so you are, in actual fact, making a loss.
• Ensure you know your sales breakeven point (Fixed Costs divided by GP%). Use this to work out your sales targets by month, week and day if necessary. • Sales is a function of leads and conversion rate. Make sure you are measuring both of these and put strategies in place to improve them.
Poor Debtors Collections 2
• Ensure you put a robust collections process in place. • Educate your clients on your payment terms. • Don’t hide behind emails. Phone the debtors that are overdue and get a
We specialise in helping business owners make more money in their businesses
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