It’s understandable to take money out of the business to fund the owner’s lifestyle. But how much can you take before it hurts your business?
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Capital expenditure refers to investments, or big one-off costs. Capex will be a drain on your cash flow. Here’s how to keep track.
The longer you hold inventory, the worse your cash flow. What are the challenges of poor inventory control and how to manage it?
Creditors refers to the money that you owe to others and it can be one of the easiest drivers to get out of control in business processes.
Increasing debtors are a negative influence on cash flow. Understanding why payments are late can be essential to fixing the problem.
How to keep track of common operational expenses like rent, staff, general admin expenses and things like stock and subscriptions?
In general, the higher the gross margin, the better the cash flow. Learn what a good gross profit margin is and how it affects your cash flow.
One of the first drivers anyone in business will look at is revenue growth. Understanding how it is changing for your business is essential.
Any business owner who has a solid understanding of these cash flow drivers will be well placed for success and growth.