Category: Business Planning

Blog articles about business planning and development

What is normally included in a cash flow forecast for forward periods
Business Planning Cash Flow Management Growing your business

What is normally included in a cash flow forecast for forward periods?

By Russell Bowyer

A cash flow forecast is an estimate of future monies (or cash) you expect to receive in by your business and pay out from your business. Instead of an historical record of these amounts in your accounts or of looking at the amounts received into or paid out of your bank account on a day-to-day basis, you simply need to look at the same concept, but for forward periods instead. Included in your cash flow forecast are all your itemised projected income and expenses, which is usually forecast ahead for 12 months or more.

Business Planning Cash Flow Management Growing your business

Cash flow software with factoring receivables (How factoring affects cash)

By Russell Bowyer

Factoring receivables helps businesses to bridge the gap between the timing of the incoming receipt of payment from customers to the timing of the outgoing payment of operational costs and expenses. But to plan for the switch to debt factoring you need to prepare cash flow forecasts beforehand. To do so you need cash flow software with factoring receivables built-in. Or alternatively, you need to be able to create complicated spreadsheets to prepare your own cash flow forecasts.

Why can a profitable business run out of cash - 7 reasons cash runs dry
Business Planning Cash Flow Management Growing your business

Why can a profitable business run out of cash? (7 reasons cash runs dry)

By Russell Bowyer

Just because a company is profitable doesn’t necessarily mean it has cash. Profits need to be converted into cash. Companies need to make sure customer receivables are converted to cash. Stock must be managed and kept to a minimum. Also, close attention needs to be made to any differential between customer receivable credit terms vs major supplier payable credit terms. It’s more likely that a rapidly growing businesses vs a slow growing business will run out of cash, which is termed overtrading. Cash flow and working capital requirements increase as business growth rates increase. This is reflected in having to increase stock or inventory levels and having to hire new people.

How can a profitable company go broke - Profit into cash to avoid failure
Business Planning Cash Flow Management Growing your business

How can a profitable company go broke? (Profit into cash to avoid failure)

By Russell Bowyer

Even profitable businesses can go broke if the cash flow is not sufficient to continue trading. There are many reasons why certain profitable companies can go under. This can include what’s termed over-trading or simply because the business fails to collect money due from customers in a timely fashion. Whether a business survives or not is dependent on the way the business operates and manages its finances. If management don’t operate correctly, the business could end up in bankruptcy.

How to increase restaurant sales without advertising
Business Planning Growing your business

How to increase restaurant sales without advertising

By Russell Bowyer

How to increase restaurant sales without advertising. This top strategy to increase restaurant sales, has a low-cost of implementation. By using this as one of your main strategies to increase sales in a restaurant, you will benefit from focusing on increasing your sales from existing customers.

This will obviate the need to advertise. Also, by leading with a customer-focused strategy, you will improve the customer experience and in turn improve on the number of times customers return to eat at your establishment.