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How you can avoid scratching for money to pay your wages and suppliers
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How you can avoid scratching for money to pay your wages and suppliers

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Are you ever short of money when you HAVE TO PAY wages or suppliers. This presentation will help you get this sorted easily

Are you ever short of money when you HAVE TO PAY wages or suppliers. This presentation will help you get this sorted easily

Published in: Business
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  • 1. How you can avoid scratching for money to pay your wages and suppliers © Copyright One Sherpa Pty Ltd 2010
  • 2. Have you ever experienced this? Your accountant tells you that you’ve made a great profit but you have no cash © Copyright One Sherpa Pty Ltd 2010
  • 3. Have you ever been confused when you went to your accountant? © Copyright One Sherpa Pty Ltd 2010
  • 4. Do you wonder why they tell you you’ve made a huge profit and then wonder where the money’s gone? © Copyright One Sherpa Pty Ltd 2010
  • 5. Do you wonder where money get’s stuck in your business? © Copyright One Sherpa Pty Ltd 2010
  • 6. A key area where money get’s stuck in your business is working capital © Copyright One Sherpa Pty Ltd 2010
  • 7. Do you know how much inventory you have? © Copyright One Sherpa Pty Ltd 2010
  • 8. Do you know how much money is owed to you by your customers? © Copyright One Sherpa Pty Ltd 2010
  • 9. Do you have a way of knowing what terms to give your customers so you don’t run out of money? © Copyright One Sherpa Pty Ltd 2010
  • 10. You may have spent money on equipment or motor vehicles during the year and these amounts can NOT be deducted from your profit. © Copyright One Sherpa Pty Ltd 2010
  • 11. This may explain where the money has gone. (Even if this was supposed to give a tax deduction) © Copyright One Sherpa Pty Ltd 2010
  • 12. Buying Equipment and Vehicles is NOT covered in One Minute Business Checkup because most business owners are aware of these large items © Copyright One Sherpa Pty Ltd 2010
  • 13. The area where money get’s slowly sucked into the business is working capital © Copyright One Sherpa Pty Ltd 2010
  • 14. This is a part of the accounts that many small business owners don’t look at or understand © Copyright One Sherpa Pty Ltd 2010
  • 15. Once you check your Money Flow measure you will clearly understand how money get’s stuck and what to do about it © Copyright One Sherpa Pty Ltd 2010
  • 16. Let me show you how to check the Money Flow Measure in One Minute Business Checkup © Copyright One Sherpa Pty Ltd 2010
  • 17. PROBLEM #5 © Copyright One Sherpa Pty Ltd 2010
  • 18. Inventory is too high. How many days are tied up? CALCULATION Inventory DIVIDED BY Annual Other Costs TIMES 365 = Number of Days ANSWER $100,000 / $570,000*365 = 64 Days © Copyright One Sherpa Pty Ltd 2010
  • 19. Let’s get days down to 45 45 Days / 365 Days * $570,000= $70,274 Original Inventory $100,000 New Level $ 70,274 Reduction $ 29,726 © Copyright One Sherpa Pty Ltd 2010
  • 20. $29,736 less Inventory 45 Days © Copyright One Sherpa Pty Ltd 2010
  • 21. Accounts Receivable are too high. How many days are tied up? CALCULATION Accounts Receivable DIVIDED BY Sales TIMES 365 = Number of Days ANSWER $150,000 / $800,000*365 = 68 Days © Copyright One Sherpa Pty Ltd 2010
  • 22. Let’s get days down to 45 45 Days / 365 Days * $800,000= $98,630 Original Accounts Receivable $150,000 New Level $ 98,630 Reduction $ 51,730 © Copyright One Sherpa Pty Ltd 2010
  • 23. PROBLEM #5 $51,370 less A/c Receivable 45 Days © Copyright One Sherpa Pty Ltd 2010
  • 24. Checkout your own information now. © Copyright One Sherpa Pty Ltd 2010
  • 25. Using the sandbox you can ‘play with the numbers’ until you get your Money Flow Measure correct © Copyright One Sherpa Pty Ltd 2010
  • 26. Go to www.oneminutebusinesscheckup.com and make sure you’ve got no excess money stuck in your business © Copyright One Sherpa Pty Ltd 2010

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