HOW TO MAXIMISE YOUR CASH FLOW NOW!!!
Manage the financial resources of your business:
v Ask for a larger deposit on all bookings.
v Retain funds as long as you can before paying suppliers.
v Get your customers on Credit Card or Full Payment upon booking.
v Pay your monthly creditors later than usual.
v Use your company credit card to extend your time to pay suppliers.
v Ask your suppliers for extended credit terms – payment over 3 months or longer.
v Change your GST to payments basis and 6 months if possible.
v Put aside 20% - 30% of your receipts to pay GST and Tax.
v Check your tax calculations and put off payment until you have funds or pay your tax with your GST.
v Fund your tax through your accountant.
v Put surplus funds in a high interest account or on deposit.
v Ask staff to work extra unpaid now and take time off later.
WHEN BUSINESS IS QUIET MINIMISE YOUR EXPENSES!!!
Manage your business expenses better over the low season:
v Decide who can afford to take unpaid leave.
v Reduce the number of paid days per week.
v Pay your telephone bill on a Credit Card.
v Reduce your expenses both business and personal to the minimum.
v When business is quiet get staff to take their holidays – this maximizes productivity when they return.
v Get any projects completed over this time when staff is not so busy.
GET FUNDING IN PLACE EARLY FOR THE LOW SEASON
Manage your funding:
v Request a temporary overdraft well before you need it.
v Obtain a loan using the equity in your property.
v Obtain a loan using the equity in your Insurance policy.
v Obtain a line of credit for emergencies well before your may require the funds.
v Flexirent any Computer purchases.
v Extend the credit limit on your Credit Cards.
WHAT LONGER TERM STRUCTURAL CHANGES CAN YOU MAKE TO IMPROVE CASH FLOW?
Long term solutions
v Match your long term assets with long term debt so you have the cash to pay your bills.
v Ensure that you have good systems in place to capture and bill every booking.
v Bill your service as soon as it is delivered.
v Develop your web presence to get customers direct and improve your margins.
v Prepare accounting reports monthly to keep a close check on your business.
v Prepare a Budget / Cash Flow so you know how much to put aside for the low season.
v If you are a tour operator – open a Trust / Travel Bank account – to enable better management of funds. Only take out what is yours.