News

It's going to be a big year, right? You needn't worry about cashflow like you did last year because you know it's going to be better this year more sales, more growth, more money optimism is a great thing, but the reality is that growth and sales aren't necessarily solutions to your cashflow worries.

 

If anything, more sales and more growth can put a strain on our cashflow because growth costs money.

The effects of your Christmas cashflow squeeze are likely to still be felt through February, but now is the time to plan to be in a better position this time next year.

1. Analyse what your cashflow was in 2015.

When was it tight? And what were the reasons behind that?

2. Put a cashflow plan in place.

Once you know the causes of your cashflow trouble, take steps to address them now, or plan ahead. For example, access to planned finance, better collection processes, savings or taking steps to address the sales drop off during that period are all considerations.

3. Speed up your receipt of cash. Implement seven-day terms if you can, at least with new business put it in a contract (even some wording on your quotations) and, if the business allows, ask for a 25 per cent deposit.