Killing the Business Killer
One way in which a business owner can prevent this killer from creeping up is a proactive approach towards cash flow managment with Business optimizer's cash flow managment tool that is rightly called the company's flagship tool.
"When you read business magazine's there are many great tips on improving your cash flow " says Danie de Villiers ,director of Business Optimizer.
"the problem for the small business owner is,if I do these things,how will I know what the impact is going to be?"
The cash flow management tool consists of a number of pages that follow on each other.On each page ,the business owner enters less and less information leading up to the cash flow pages that combines all the information to reflect the state of the business.
The first page contains the assumptions that the planning is based upon and includes information such as projected interest rates. The next is the costs page.The information for the first year is captured and the projections for the next four years are generated automatically,including salary increases.
The following pages capture the company's assets, as well as how it is financed,with loans,leases and rent captured along with the interest rates and the terms.All this information leads into the income statement.
Next comes the balance sheet and only then do you get the cash flow.
The beauty of the tool is that it is intergrated.If interest rates change,one entry can immediately alert the business owner of the impact five years down the line.The business owner can also calculate how better terms with creditors will impact the overall cash flow through a number of simple entries
The tool is also valuable when it is time to sell the business.The ability of the business to generate cash consistently is a big consideration for potential buyers.
Business Optimizer make the software tools available to all HotFrog readers at no cost for a limited period of 30 days.This enable them to sample the software and complete the cash fow managment tool.
This artical was commissioned by Business Optimizer.
For more information please visit the website at www.businessoptimizer.co.za or contact Johan Oosthuizen at [email protected]