If you sell stock or inventory, it’s essential you understand stock turn and how to increase it. Slow-moving, obsolete, or ‘dead’ stock will seriously reduce both your cashflow and your ability to increase your profit. The longer stock takes to sell, the longer you...
Your lock up days is the number of days it takes to convert your debtors, stock and work in progress into cash. The higher your lock up days, the more cash is needed in the business (either from you or the bank), and the higher the risk of losing that cash. Worse,...
Profitable businesses can go broke simply because they don’t manage their working capital cycle and run out of cash. Your working capital cycle is the number of days your cash is tied up to take your goods and services through the sales process. The longer the...
How long is it taking you to get paid? How do you measure this? What strategies can you adopt to get paid faster? Debtor days is used to measure, on average, how long your customers take to pay you. While there are many complex formulas to accurately calculate this, a...
If cashflow is the lifeblood of your business, then working capital is the health check you should have regularly to keep your business alive. Working capital measures the surplus (or deficit) you have to keep your business afloat without needing to sell assets,...
Most of us aim for work-life balance but get derailed when everything gets busy. The benefits far outweigh the difficulties though, and we think that there are a few tips below that might help at any time of year. Just imagine if in December you look back on the year...
