Summary:
To keep your business strong and running smoothly, cash needs to flow into the right places, at the right times. Good management and planning is key to that - controlling costs, managing spending, and creating cash buffers wherever you can helps to keep your business ticking. In business, a strong cash flow statement is like a good bill of health.
Options – How do I keep things running smoothly?
Consider these tips.
- It’s important to keep planning – review and understand your business cycles and create cash buffers wherever you can.
- Time should be spent on the best ways to generate revenue – look at your target market, understand what they want and how best you can meet their needs.
- Ensure that your terms of payment are clear. Be firm about being paid according to those terms.
- Control costs –carefully plan what money you’ll need and when you’ll need it – for items like new stock and equipment.
- To get the best from your staff it helps to ensure they are given clear job accountabilities and regular performance feedback.
Where to from here?
A good business should seek new ways to meet the needs of its market, so along the way you may need to make adjustments.
Suncorp Business Banking Managers can help you ascertain what cash flow a business should have to keep running smoothly and we’re here to help. You can speak with a real person either face to face, in one of our branches, or over the phone on 13 11 75.