Cashflow : How to manage ?

What is cash flow?

Cash flow is the amount of money that’s going in and out of your business. The flow of cash is initiated by two things: Money coming in thanks to your customers making purchases and money going out through business expenses such as your inventory, staffing costs, operating bills, etc.

Healthy cash flow happens when you more money flowing in, while the opposite scenario — i.e., having higher expenses and not enough income — puts you in a cash crunch.

How to improve cash flow

Now that you have a basic understanding of cash flow, let’s discuss how can improve it. Below are some action steps for freeing up more cash in your retail business.

1. Implement smarter inventory practices

2. Review your insurance policies

3. Stay on top of on-account sales and unpaid invoices

4. Lower your merchant card services fees

5. Cut back on costs and operating hours

6. Perform a CAM (Common Area Maintenance) audit

7. Have a cash reserve

Bottom line

Cash crunch or not, you should always be on the lookout for ways to free up funds in your business. Hopefully, the pointers above gave a few ideas on where to look and how to get more cash flowing through your company.

How are you freeing up cash flow in your business? Let us know in the comments!

#cashflowmanagement #cash