Some of the best business advice Gold Coast companies receive is related to cash flow. You need to be able to pay your bills and earn a profit to stay viable. It’s surprising how something as significant as a lack of cash flow can suddenly surprise a business owner. The following signs will help you identify a cash flow problem before it wrecks your operation.
- There’s Not Enough to Pay Debts without Juggling Funds
Has it become more difficult to pay all of your debts without moving funds from one place to another? While you may cover an immediate expense, you are taking money away from something that will also need to be paid. An inability to cover debts without juggling funds is a sure sign that you have cash flow problems.
- Your Profits Are on a Downward Trend with No End in Sight
Markets will shift up and down. It’s not unusual to experience a brief low point. However, if you notice that your profits are trending downward with no end in sight, this could indicate a bigger issue. There are several things you should look at if you notice this change including sales, gross and net margins, discounts, and staff productivity.
- High Staff Turnover That’s Eating Your Money
If you experience high staff turnover, it’s time to reevaluate your recruitment and retention plans. Hiring and firing employees costs companies money. It can start to cut deeply into your profits and cause cash flow problems. Make sure you have a recruitment plan and effective training programme as well as incentives that make workers want to stay.
- Sales are Low and Limiting Your Company’s Cash Flow
Sales are essential to the success of any business. If your sales are low, then you will begin to struggle. If you notice a lack of sales, try something new. Add-on sales are a good way to go. You can also present appealing offers to customers. Work on building good relationships with consumers because around 80% of sales happen after the fifth contact.
- Pricing is Not Monitored or Kept Up to Date
You may have had a perfect pricing system in place when you started, but have you been following up? Prices need to be monitored to ensure that you are earning profits as the cost of materials and services change. Suppliers may raise prices and competitors may lower theirs and draw customers away. Update your prices regularly to keep your product or service appealing and profitable.
Business Advice Gold Coast Companies Need
This is just some of the business advice Gold Coast companies need to be successful. Oculus Group offers access to experts who understand finance and can help businesses thrive. Contact us today on 5536 3755 or fill out our online contact form to learn more about how to increase your cash flow.