How to achieve sustainable business growth
Friday 23rd June 2023
1. Regularly review your cash flow forecast
A cash flow forecast is a projection and not an exact prediction. Businesses are constantly changing and evolving, which means that a cash flow forecast that was accurate when it was created may no longer be accurate. By regularly reviewing your forecast, you can ensure that it reflects the current state of your business and that you have a much clearer picture of your business’s actual financial health
2. Straightforward payments
Making the process straightforward will help to reduce the likelihood of late payments. Different accounts departments will have differing preferences, and the more options they’re presented with in terms of making payment, the more likely they are to make it quickly.
3. Invest in credit protection
Running a business, you look to protect yourself from any eventuality that may have an impact on the success of your business, your debtor book and invoices should be no exception. Research has shown us that 40% of a company’s assets are typically found here so if anything were to happen to your key customers, your business might find itself in a rather tricky situation.
4. Monitor inventory and outgoings
More clients means more inventory. We recommend regularly conducting an inventory and cutting out old products that have stockpiled and aren’t selling. Discounting products to make way for new lines will help increase cash flow and make room for better investments. Leasing equipment and supplies instead of buying them outright allows you to pay smaller increments over a long period and cash flow won’t be as affected by a large one-off payment.
5. Leverage technology and automation
In today's digital age, utilising technology and automation tools can significantly enhance the efficiency and scalability of your business. Explore software solutions that can streamline your operations, such as customer relationship management (CRM) systems, project management tools, and communication platforms. Automation can free up valuable time, allowing you to focus on your strategic business growth