The third cause of poor cashflow – Your stock turn

The third cause of poor cashflow – Your stock turn

Carrying stock for too long means full shelves but an empty bank account. Similarly, if you’re a service provider and are taking forever to bill for your services, consider that work in progress as a form of virtual stock. You can calculate your ‘stock turn’ by taking...
The first cause of poor cashflow – Your cash lockup

The first cause of poor cashflow – Your cash lockup

There’s a massive difference between profit and cashflow. Profit increases when you create an invoice for work you’ve done or goods you’ve sold; cash increases when you bank the money. Your lockup equals the cash that isn’t in your bank account because it’s either in...
The 7 causes of poor cashflow

The 7 causes of poor cashflow

Cash is the life blood of any business. In fact, even profitable businesses can and do fail because of poor cashflow. What’s important is that you understand your key cashflow drivers. Improving cashflow is often all about changing your business processes. Processes...