4 Useful Ways to Improve your Retail Cash Flow
by Ansar R. BloggerCash is
without any doubt the lifeblood of every retail operation. It’s the very reason
that keeps your business running and allows you to do great things for your
clients. That is why it is extremely essential that you should have enough cash
flow through your business not only for your survival but also to progress by
leaps and bounds.
When it
comes to analysing the performance of your business through cash flows, you
should know that positive cash flow is extremely essential for your business
growth while negative cash flow is not good news for you.
The question
arises at this point is that what should be your response when you have
negative cash flow and how can you enhance your positive cash flow and get your
business to its best place.
It is worth
mentioning that the cash flow is not only affected by increasing your cash
inflows, but also putting a limit on your cash outflows. In other words, you
will have to manage your expenses and also, your sales for retaining favourable
cash flow results. Besides, retail
pos systems can also be the right answer for you as they have been
offering ease for both customers and retailers alike.
Let’s have a
look at some of the practical ways to improve your cash flow and bringing your
business on the right track.
1. Train your
Staff on Cash Management Policies
Training
your staff on cash management policies is of significant importance as it helps
you to ensure that they are following procedures accordingly. Meanwhile, it
will also minimise the risk of mistakes that can be avoided.
Try to
review your current cash management techniques and also eliminate unessential
steps while introducing efficiency. Meanwhile, if you want to revamp your cash
handling methods, implement them and then train your employees. Besides, it
should also be ensured that the employees know their roles regard with regards
to cash handling. Let it be known to the staff that the cash management
policies must be followed thoroughly and close monitoring of cash flow will
also be carried out.
2. Try to Liquidate Excess
Inventory
Liquidating
your excess inventory will have a positive influence on your cash flow and the
best way to do that is by putting them on sale. Try to bring out the
slow-moving products from your stock and put them on sales while marking them
down. Although this practice will minimise your profits, it would help you to
free up space and cash.
Besides, if
you want to add value to your revenue and get rid of your slow-moving inventory
at the same time, you can also complement other products and bundle them
together.
3. Get Clients to Pay Invoice
Timely
Another
crucial factor to enhance your cash flow is by getting your clients to pay
their invoices on time. However, it is not easy as it seems and there are lots
of practical strategies to enhance the likelihood of getting cash quickly.
Try to make
sure that you remind your clients when their invoices will be due. Besides, you
can also send email reminders a couple of days before the invoice is due, on
the exact date, and also a few days later if need be.
In order to
improve your cash flow, it would also be a better option to consider offering a
discount to your clients who pay their invoices prior to a certain time.
Another key
to enhancing your cash flow is by having a strong invoicing policy. Putting a
late payment penalty into practice for clients who exceed the due date will not
only help to increase the odds of getting your money, but it will also
distinguish you as professional.
4. An Up-to-the-minute EPOS System
will Help
The modern point of sale solution can track every aspect of your business regardless of whether it is the basic inventory or your sales in a particular shift. These sales figures can easily be split into expenses and profit per unit, or even per hour as you like. With the right kind of data, it’s convenient to see your best performers in terms of sales and sellers. Besides, with the proper setup, a point of sale system can easily help retail businesses to identify their key customers.
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Created on Mar 14th 2020 15:27. Viewed 476 times.