In need of a healthier cash flow? Africa Report gives you five easy steps to make your cash flow a lot healthier than its current state.
As previously discussed, the cash flow is a statement of the monies coming into the business and leaving the business. It’s not that difficult to improve your cash flow if you know what you’re doing. Just follow these easy-to-implement ideas…
1. Reduce your customer payment plans. Offer customers incentives such as free delivery or discounts if they pay within a certain time (say, 30 days instead of 60 or 90). This should give customers the push they need to pay you on time, especially the sticklers who have put the next tip into their cash flow improvement plans…
2. By paying your accounts at the last minute, you will be able to hold onto cash for a longer period and not seem to be paying out money every day. If Tip 1 works and you receive payments on a more regular basis and only pay money out at the end of every 3-month period, you should be able to improve your cash flow.
3. Raising prices should be done at regular intervals and in moderation; not one massive increase at odd intervals. You have competition in every industry, so why not charge comparable prices? There’s no reason for you to charge R1 when your competition is charging R4 for the same product. Also, if you’re selling your product too cheaply, you may be unjustifiably and incorrectly labelled as offering inferior products. This will scare customers away and then you’re in trouble.
4. Don’t tie up money in stock or inventory that will not be used for some time. Instead of buying 10 000 pages of printer paper when you only use 1 000 a month, buy 3 000 so that you have enough to cover any unforeseen circumstances but at the same time are not keeping ridiculous amounts on hand.
5. In the long run, buying is always cheaper than renting. However, for cash flow purposes, it makes sense to tie up small amounts of money in equipment and property than to lay out a large amount at once. These rentals are also considered tax-friendly, so you’ll be benefitting from that too.
It’s important to maintain a healthy cash flow for your business, but it’s not always the first thing you think of doing. However, by just tightening up a couple of aspects and philosophies, you can easily improve your cash flow in the blink of an eye.
I have been thinking a great deal about my experience at Reconciliation this past Saturday. I felt an intense and unexplainable urge to go and confess my sins when I woke up that morning. I try to go every six weeks or so, but this was no routine visit to the priest for me. I needed to unburden myself of the numerous venial sins I had committed since I last participated in this Sacrament.
Purest Gold: God's Refining Fire in our Lives »
After salvation, many young Christians wonder if there's anything more to their newfound faith than just the security blanket of "being a Christian." Time and time again, God shows himself as a "refiner," and our lives are as gold. God started leading me in this study to understand what He was doing in my life, as well as in the lives of others.
Picking up my pen to write this column, I couldn’t imagine how time flies. Since the last publication of this column I have gone through a lot, especially the loss of my dear mother to whom I dedicate this article. Not only her, but seems I lost a whole generation of my close family.
How to Achieve Business Excellence »
“Do you see a man who excels in his work? He will stand before Kings; He will not stand before unknown men.” Proverbs 22:29
Spiritual Development for our Youth »
Most of us youth in today's fast moving world are easily thrown off by difficulties and worries.
The theme of conversion is a thread that runs all through Lent, but conversion takes on different aspects throughout the phases of Lent. The first two and a half weeks focused on the interior turning of hearts; the liturgy urges the faithful to reflect and examine consciences thoroughly.
Saint Josephine Bakhita »
Feast Day: February 8
Patron Saint Of: Sudan
Saint Josephine Margaret Bakhita was born around 1869 in the village of Olgossa in the Darfur region of Sudan. She was a member of the Daju people and her uncle was a tribal chief. Due to her family lineage, she grew up happy and relatively prosperous, saying that as a child, she did not know suffering.
Catholics Must Fast More Intensely This Lent»
The Norbertine Canons of St. Michael's Abbey have created this digital Lenten retreat so that you can journey through this holy season alongside them. If you want to have one of your best Lenten seasons yet, join us in our Lenten Program "The Great Fast" - https://theabbotscircle.com/the-great-fast-join
When Your Faith Is Put to the Test - Bishop Barron's Sunday Sermon»
Friends, we come now to the Second Sunday of Lent, and we’re on both dangerous and very holy ground with the first reading from the twenty-second chapter of Genesis. The ancient Israelites referred to it as the “Akedah,” which means the “binding”: Abraham binds and is ready to sacrifice Isaac at God’s command.
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