Cash Flow is essentially the flow of actual money in and out of your business. It does not including accounting items like depreciation or transaction items like sales via accounts receivables. Cash flow is the stuff that is used to pay bills, meet payroll, expand businesses or take profit.
The following are 5 ways that you can improve your business’s cash flow:
Account Receivable Collections: If you have customers that are constantly paying late – try to find ways to improve your collection efforts. This could be sending out notices earlier. Calling accounts payables or managers directly instead of sending written notice. Or, sending reminders of payment due dates and the penalties of late payments (really outlining and stressing the penalties) more often or sooner during the waiting period. If you don’t have penalties for late payment – this is a good time to put them in place – make them significant – and, highlight them on your invoices and when dealing with customers.
Franchising is big business and is a major area of potential growth for SMEs. According to the SME Annual Report 2006, there are currently 321 franchise systems in Malaysia with 197 home-grown franchise brands and 124 foreign franchises, accounting for 5% of total retail sales. In the Ninth Malaysia Plan, the Government has highlighted franchising as one of several strategies to promote a globally...
As highlighted in the SME Annual Report 2006, keeping up with technological advancement is vital if SMEs are to enhance efficiency and increase productivity. Although upgrading technological processes may result in an expensive upfront investment for SMEs, positive effects can include a reduction in production time, an improvement in production quality and an overall lowering of costs. Embracing t...
