Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Keep the wheels turning slideshare final

6,363 views

Published on

The most common small business cash flow problems and what you can do to make this your number one priority.

Cash is the lifeblood of every business and letting it run dry would cause serious problems. That’s why ensuring your firm doesn't suffer from cash flow problems should be your number one priority.

Published in: Business
  • Real people just like you are kissing the idea of punching the clock for someone else goodbye, and embracing a new way of living. The internet economy is exploding, and there are literally THOUSANDS of great earnings opportunities available right now, all just one click away. ♣♣♣ http://ishbv.com/ezpayjobs/pdf
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Dating direct: ♥♥♥ http://bit.ly/36cXjBY ♥♥♥
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Dating for everyone is here: ♥♥♥ http://bit.ly/36cXjBY ♥♥♥
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Keep the wheels turning slideshare final

  1. 1. Keep the wheels turning Five ways to keep cash flowing through your small business
  2. 2. If there isn’t enough cash running through your business to pay your staff and overheads, it will have a negative effect on your operation. Ensuring that your firm doesn’t suffer from cash flow problems should be your number one priority. # 1
  3. 3. The best way to keep cash flowing is to head off any potential problems before they threaten your business. Here are five steps you can take to keep your firm on the road to success.
  4. 4. Drawing up a cash flow forecast can help you see where you are vulnerable. 1. Look to the future
  5. 5. It’s important to learn how to recognise the warning signs that your forecast might contain. ! 1. Look to the future
  6. 6. It’s time to act if... 1. Look to the future
  7. 7. It’s time to act if... • You have a payroll run or several bills due to be settled before you get paid for a large order 1. Look to the future
  8. 8. It’s time to act if... • You have a payroll run or several bills due to be settled before you get paid for a large order • Your forecast shows that if one major customer pays late, you won’t be able to pay your bills on time 1. Look to the future
  9. 9. It’s time to act if... • You have a payroll run or several bills due to be settled before you get paid for a large order • Your forecast shows that if one major customer pays late, you won’t be able to pay your bills on time • Your suppliers’ credit terms are stricter than your own – so you’re paying out cash faster than it’s coming in 1. Look to the future
  10. 10. It’s time to act if... • You have a payroll run or several bills due to be settled before you get paid for a large order • Your forecast shows that if one major customer pays late, you won’t be able to pay your bills on time • Your suppliers’ credit terms are stricter than your own – so you’re paying out cash faster than it’s coming in • You have little or no spare cash to fall back on 1. Look to the future
  11. 11. 2. Get on top of your record-keeping
  12. 12. Keep the cash flowing 2. Get on top of your record-keeping
  13. 13. Keep the cash flowing • Issue your invoices as soon as you can. The sooner you do, the earlier you’ll get paid 2. Get on top of your record-keeping
  14. 14. Keep the cash flowing • Issue your invoices as soon as you can. The sooner you do, the earlier you’ll get paid • Consider offering discounts for early payment… and interest charges on overdue invoices 2. Get on top of your record-keeping
  15. 15. Keep the cash flowing • Issue your invoices as soon as you can. The sooner you do, the earlier you’ll get paid • Consider offering discounts for early payment… and interest charges on overdue invoices • Make sure you bank cash and cheque payments as soon as they come in and if you haven’t already done so, consider letting customers pay by BACS 2. Get on top of your record-keeping
  16. 16. If you can’t spare enough time, maybe it’s time to 2. Get on top of your record-keeping
  17. 17. If you can’t spare enough time, maybe it’s time to • Take on an extra member of staff, possibly part-time, to handle your records and invoices 2. Get on top of your record-keeping
  18. 18. If you can’t spare enough time, maybe it’s time to • Take on an extra member of staff, possibly part-time, to handle your records and invoices • Outsource your bookkeeping to a specialist 2. Get on top of your record-keeping
  19. 19. If you can’t spare enough time, maybe it’s time to • Take on an extra member of staff, possibly part-time, to handle your records and invoices • Outsource your bookkeeping to a specialist • Use a software package that makes it easier to keep track of payments and can alert you to chase outstanding invoices 2. Get on top of your record-keeping
  20. 20. 3. Know your customers
  21. 21. Carry out credit checks in advance Keep track of who pays late and base future trading decisions on it 3. Know your customers
  22. 22. Prompt payers Laggards A firm in trouble 3. Know your customers !
  23. 23. Prompt payers These are the customers every business dreams of, settling their invoices on time or even sooner. Is there any way of increasing the amount of revenue you get from them? 3. Know your customers
  24. 24. Laggards If a customer pays late on a regular basis, ask what you can do about it. If they are a major source of business, your hands might be tied. But it’s worth thinking about how you could survive without them and looking for other sources of revenue or find ways to encourage them to pay on time, such as early payment discounts. 3. Know your customers
  25. 25. A firm in trouble If a former “prompt payer” has started falling behind schedule, it could be a sign that they themselves are struggling with cash flow. Consider scaling back the business you do with them. 3. Know your customers !
  26. 26. 4. Manage your growth
  27. 27. Growing too fast is one way to run out of cash. But a carefully controlled lending service such as invoice finance can make a big difference. 4. Manage your growth
  28. 28. • Your outstanding invoices are an asset, and they can be used to borrow money 4. Manage your growth
  29. 29. • Your outstanding invoices are an asset, and they can be used to borrow money • An invoice finance firm can give you cash upfront against your invoices which you either pay back once they are settled, or which the firm chases up on your behalf 4. Manage your growth
  30. 30. • Your outstanding invoices are an asset, and they can be used to borrow money • An invoice finance firm can give you cash upfront against your invoices which you either pay back once they are settled, or which the firm chases up on your behalf • If your cash flow forecast indicates there could be trouble ahead, now might be the time to look for outside assistance. Don’t wait until it’s too late 4. Manage your growth
  31. 31. It can be hard to stay focused on running your business when you have financial problems in the background, but it’s important not to neglect what you do best when times are hard. 5. Get back to doing what you do best
  32. 32. 5. Get back to doing what you do best Keep the wheels in your business turning
  33. 33. Keep the wheels in your business turning 5. Get back to doing what you do best • Continue to develop new products to add further value to your service offering
  34. 34. Keep the wheels in your business turning 5. Get back to doing what you do best • Continue to develop new products to add further value to your service offering • Spend time on building a lead generation strategy as attracting a pipeline of new customers will ensure your business’ stability
  35. 35. Keep the wheels in your business turning 5. Get back to doing what you do best • Continue to develop new products to add further value to your service offering • Spend time on building a lead generation strategy as attracting a pipeline of new customers will ensure your business’ stability • Explore new markets for opportunities to plug any gaps in your offering, or quick wins to expand your outreach
  36. 36. Focusing on these steps will keep your cash flow and business running smoothly, and will help to ensure that the wheels of your business keep on turning. 5. Get back to doing what you do best
  37. 37. See how the best business lenders are finding new ways to fund business growth Download our free eGuide - A new landscape: business lending after the financial crisis Click here now Close Brothers Invoice Finance is a trading style of Close Invoice Finance Limited (‘CIFL’), a subsidiary of Close Brothers Limited. CIFL is registered in England and Wales with company number 935949 and registered office at 10 Crown Place, London EC2A 4FT.

×