FOOD FOR THOUGHT

You know money is coming in, and it is also definitely going out – but for some reason you don’t feel like the business is actually running a profit. This could because there are cash blockages in your working capital cycle (WCC), and it is important that you identify these before they become a large burden on your daily business operations.

According to a recent survey of New Zealand business owners and CEOs undertaken by Perceptive Research, the top two indicators used to evaluate business health are: the state of the business’ bank account, and profit. Surprisingly only 3 per cent of respondents cited cash flow.

I like a good surprise as much as the next person, but a surprise cash shortage, unexpected changes in margin and unanticipated tax costs will make any business owner’s blood run cold. Preparing a cash flow forecast once a year is a good start, but it's often not enough. Here’s why. 

Good inventory management is important for any business as it can lead to improved cash management and profits in the long run. In this article we put forward our top six strategies that will help improve your inventory management. 

Despite their best efforts, many businesses struggle to shake off their cash flow restrictions. Why? Mike Atkinson explains. 

Choosing to discount or raise prices is going to create a ripple effect that will impact other areas of your business. But how and to what extent? Mike Atkinson reports.