As an entrepreneur, you are aware of how important cash flow is to your business. It is the lifeblood without which it is not possible for you to operate your organization efficiently and effectively in the marketplace. This is the reason why you agree to the old adage ‘cash is king’.You also know that if your establishment does not have adequate cash resources at any point of time, profits on paper are worthless. Even the most profitable businesses can file for bankruptcy if they find the cash outflows exceed their cash inflows. However, you often come across a situation where there is a time lag when you have to make essential payments and collect the amount your customers owe you.
Ron Ozer– How to improve your business organization’s cashflow
Ron Ozer is a popular personal injury attorney from Phoenix, Arizona, with a reputation for obtaining the maximum number of jury verdicts for his customers. He specializes in specific areas of legal profession which include automobile accidents, wrongful death, civil rights, insurances cases, police brutality and workers’ compensation.He is the recipient of numerous BarristerAwards for outstanding services in this field of trial advocacy. In fact, ‘The National Trial Lawyers’ selects him as one of top 100 civil plaintiff trial lawyers in the state.
This prominent personal injury attorney from Phoenix says it is possible for you to improve your business organization’s cashflow position by keep in mind the following 3 essential points:
- Improve receivables
If your clients pay the money they owe you for the sales you make, it very unlikely foryou face a cashflow problem. However, in reality is the not always the case. Fortunately, there are ways where you can speed up your organization’s receivable. You offer them attractive cash discounts for prompt payments, ask them to make a cash deposit for the order they place and carry out credit on noncash paying clients.
- Managing payables
As an entrepreneur, it is more important for you to keep an eye on your operating expenses as it is for you to effectively manage your cash receivables. If you have good business relations with your suppliers, you can ask them to extend their payment terms from 15 to 30 days. You can request them to accept payments via electronic funds if make payments on the last day and explain to them your financial situation. In the worst-case situation, if you ever make late payments, they will understand. At the same, review the discounts your vendors are willing to offer you for bulk payments.
- Effectively managing you inventory
You need to review the inventory you keep in your organization. It is important for you to keep fast selling stocks in your establishment so that you do not end up payment a considerable amount on insurance, storage and carrying costs.
Ron Ozer says keeping in mind the following 3 factors can go a long way in helping you to improve your organization’s cashflow situation. It is important for you to remember that even if bottom-line profits are not sufficient, you still operate your business efficiently if you have adequate monetary resources. However, this is not possible in the reverse case.