ACTIONCOACH: PAUL BROOKSBANK

Business Growth Expert, Bedford

call me on

07590 584642

Don't Lose Money Through A Leaky Business Bucket!

Cash is always king ...

 
 

POSTED BY PAUL BROOKSBANK ON 11/10/2018 @ 9:00AM

Cashflow can feel like a bit of a leaky business bucket sometimes and has become elusive for many business owners. Weak or inconsistent cashflow is one of the main reasons businesses fail ...

Your cashflow could be slipping away thanks to your leaky business bucket!

Your cashflow could be slipping away thanks to your leaky business bucket!

copyright: costasz / 123rf

If you're looking to improve cashflow in your business, there are several key areas you need to consider and the leaky bucket is a handy analogy that I look at with my own clients.

"The money you earn 'flows' in and the money you spend inevitably 'flows' out. You are left with either a profit or loss!"

But sometimes small holes allow money from other areas to trickle out. Often these leaks are unnecessary and completely avoidable, but will often go unnoticed to a busy business owner.

Patching a leaky bucket isn't just about driving more sales though. Here are a few of the areas that I look at with clients to improve cashflow:

  • Revenue: One of the first steps in improving cash flow is revenue improvement via a price increase or an average value of sale increase, not volume of sales.

  • Cost of goods: A reduction in the Cost of Goods will help to improve the cash flow situation and is often overlooked. But there are many ways of doing this, such as changing suppliers, negotiating a better deal with them, purchasing online.

  • Accounts receivable: Debtors e.g. money your customers owe you. By collecting faster, getting deposits, progress payments, collecting payment at time of delivery etc, are all different ways to improve this figure.

  • Inventory reduction: Reduce the average number of days your inventory is sitting around to improve cashflow. Sell off old stock, buy faster-moving stock, get stock on consignment etc. Implementing a stock system, bundling slow moving items (at a discount) with faster-moving items.

  • Accounts payable increase: The key is to pay your suppliers slower, while still keeping within their trading terms. Increasing the amount owing to your suppliers keeps cash in your business longer, which can be put to operational use.

  • Overhead reduction/expenses: What can be reduced without reduction of required capabilities. Are all personnel being fully utilised? Could you sub-let some of your office space if it's vacant? Review your monthly costs and see where you can reduce the payment by changing suppliers, getting rid of the cost. Do you have a structured purchase order system in place? And a tracking system for goods received?

There are literally hundreds of strategies that ActionCoach have that can help improve your cashflow across all these areas. Don't let your hard earned money dribble out of a leaky business bucket.

"Would you like to know more?"

If you'd like to find out more about cashflow and plugging the holes in your leaky business bucket then do give me a call on 07590 584642 or click here to ping me an email and let's see how I can help you.

Until next time ...

PAUL BROOKSBANK


PS:

If you're looking for a specialist business coach in the Bedford area, do visit www.facebook.com/actioncoachbedford and let's see how I can help you reach your dreams and goals.


Share the blog love ...

Share this to Google+Share this to FacebookShare this to TwitterShare this via BufferShare this to LinkedInShare this to Pinterest
Click here to Share, Email or Bookmark this website

Précis (0)






More about Paul Brooksbank ...

Are you a motivated business owner working far more hours than you would like in an average week? Do you feel frustrated that despite the hours you work, your business isn’t growing as fast as you’d like and profits aren’t at the level you think they should be? Is a lot of your working week spent fire-fighting and do you think that your time spent in the business could be more productive?

Do you feel like there’s untapped potential in your business but you are so bogged down working ‘IN’ your business, that you lack the time, energy and resources to work ‘ON’ your business and take it to the next level? Would you like to know how you can both reduce the hours you’re working and grow your business faster? And yes, it is possible.

If so, business coaching could be right for you!

Telephone:

07590 584642


More blog posts for you to enjoy ...

Are You Saving Yourself A Wage And Costing Yourself A Fortune?
You need to step outside your business ...

The 90-Day Planning Cycle And Why It Works
It's vital to have a plan ...

Is Your Marketing An Expense Or An Investment?
The key is to test and measure ...

ActionCOACH: Be x Do = Have!
It's as simple as that ...

Welcome To My Brand New Blog!
It's the start of something beautiful ...


This is me!

Keep in touch ...

Send me an email
View my RSS newsfeed
Find me on Facebook
Follow me on Twitter
Connect with LinkedIn

By Category ...

General (3)

Growing Your Business (4)

Marketing (1)

Running your business (3)

Self Improvement (4)

By Popularity ...

ActionCOACH: Be x Do = Have!

Welcome To My Brand New Blog!

The 90-Day Planning Cycle And Why I ...

Is Your Marketing An Expense Or An ...

Are You Saving Yourself A Wage And ...

Where Will Your Business Be In Five ...

Don't Lose Money Through A Leaky Bu ...

Use A Default Diary To Get The Most ...

Harnessing The Power Of The Busines ...

Why Self-Management, Not Time-Manag ...

Login ...



Remember me