"Cash flow is KING!"

Cash flow is the balance of all the money flowing into and out of your business. While a business can survive for a short time without sales or profits, without cash it will die.

Usually when we talk with business owners we really stress this area to them - as most businesses do not prepare these budgets and often do not manage their cash flow either.

To improve the financial performance and cash flow position for one client we developed a financial budget and used key performance indicators to identify areas of loose financial control and management. We then developed an action plan to address each area. We targeted inefficient supply ordering because he had over $200,000 in excess stock on site - clearly, a costly and unacceptable situation. We then focussed on restructured the staff roster which was sub-optimal and resulted in significant overtime. Other areas for savings were also identified and implemented over time. This exercise delivered $340,000 in saving for the 12 months and $140,000 in on-going savings per annum. Needless to say the business owner is very happy.

To discover how you can improve your cash flow - click here to learn about our business health assessment or click here to find out how a business coach could help you.