Tag Archive for: Cash Cycle

In Business, Cashflow is King: Managing Financial Flow

A well-used line in business – and for good reason, as without cash (or cashflow) in a business, it delivers the same result as a having a body without blood – SUDDEN DEATH!

I have seen mortally wounded businesses survive, simply because they had sufficient cashflow coming in the door to provide options. In some cases, the key objective was purely the opportunity to open the door again tomorrow.

There are a variety of ways to look after your cashflow – BUT FOR THIS POST we will cover one of the most fundamental and important cashflow aspects – … Read More

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Improving Business Margins: Enhancing Your Financial ‘Short Game’

Finance has shown me many things over time, but perhaps one of the more powerful concepts is “profit versus turnover”. For the golfers out there, I liken this to “driving for show VERSUS putting for dough“.

Underlying profitability and the associated free cash available for debt servicing are focal points for a Banker with any finance proposal – as this shows whether there is the expected ability to repay the loan within the proposed terms. The simple “revenue line” however, whilst interesting for trend and margin analysis, by itself – does little to prove debt servicing ability.

This … Read More

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Navigating Business Growth Costs Effectively

Often the objective of most businesses is SALES GROWTH, but it comes at a cost…. so the real question is – how growth ready is your business?

A basic principle of business is to generate sales (product or services) to return a profit. The natural flow on from this is to generate more sales to achieve a greater profit – but…what does this take and how prepared is your business for growth?

Listed below are five key ingredients required for successful sales growth;

Personnel

Increasing sales invariably requires more of your personnel, whether it be in the creation, … Read More

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7 Reasons Why You Should Understand Your Cash Cycle

You often hear throw away comments such as “Cash is King” and “Cash is the lifeblood of business” – but what do these really mean?

“Cash is literally King” – as it is arguably the most important aspect of the financial health of any business and essentially “rules” over what happens. The other fitting analogy is that “Cash is the lifeblood of business” – as a business without cash will close just surely as a body without blood will die.

When I look at a business, the second statement normally resonates more for me – as an important component of … Read More

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Moths in Your Pocket: Managing Unseen Business Expenses

Successful businesses have a strong handle on where they spend their money.

There is no point putting in all of the effort in running a business, finding clients and generating sales if at the end of the day – you have nothing left to show for it. Every dollar you spend must deliver tangible value to you and your business.  If it doesn’t, then it makes no sense to pay it.

This is not just about an unsustainable slashing of costs, but a targeted approach to making sure that your “expenses” are working hard.

Broadly expenses will fall into … Read More

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