Cashflow management, critical for success

We hear a lot about sales and growth specially in today's environment. But what about adequate cashflow. For without good cashflow sales numbers mean nothing. Cashflow management is essential for growth and survival of a business today. You can have good sales, but if you have lousy cashflow it's nothing, a zero.

How then can a business develop a cashflow management system that holds down operating costs, and generate cash for expenses, savings, and investments?

It begins with a careful analysis of all business operation, practically a physical, every aspects of the business is analyzed to find problem costs that impact cashflow. Once those problems costs are identified and categorized, a careful line by line analysis is made of each expenditure as to relevance, need, cost, alternative, and impact on cashflow.

Once a business finds and analyzes those problem costs, immediate steps are taken to rectify them. Usually the business analysis generates 20 to 30% or more in cost savings when properly done. But more steps must be taken by management to put the business on the path of growth and development. Those steps include but are not limited to a review\update of the business plan, preparation of a realistic budget aligned with the business long term objective, and relevance of products\services etc.

Once the above is implemented, continued monitoring and adjustments are needed in order to hold the desired course. Of course, management has the option to do all of the above on their own, or partner with a consulting firm such as Ljosr Management Consultants to analyze business operations , prepare, and implement a turnaround plan.

"Failing to plan is planning to fail" Ben Franklin

To learn more: Call or email Lionel J.L. Olivier, Sr Business Analyst, at 347-365.1410, 646-388.2463, ljosr@optimum.net or fill our contact form. Stay safe!