Cash Flow Ideas

25 Mar

Some cash flow ideas you might consider basic, while others may stir the creative juices.  I’m game for new ideas and your twists.

There are really two different costs to watch, fixed costs and variable costs.

There is revenue to raise.

Bills to pay.

Money to collect.

These all work together in affecting your cash flow.  Ultimately, cash flow boils down to timing cash in with cash out.  Everything else, will influence how easy or difficult this task becomes.

I once had a business owner tell me to make money in the Winter.  Those words have echoed in my brain many a time.  This can prove extremely difficult in a depression for a seasonal industry.  In other words, the industry is shrinking and you can’t tell just how bad the winter will be.  I personally, have found this to be the MOST difficult task to position for and yet believe that ultimately is the most important task to accomplish.

Different industries often have different ways of making money.  In my industry, showrooms and expertise aren’t cheap; which means there is pressure to keep fixed costs high.

A depression environment has forced us to look for ways to push down fixed costs.  With varying degrees of success, there are many ways to lower fixed costs.

1) Let employees go

2) Furlough hours

3) Some states facilitate one week on, one week off – furlough/unemployment

4) Temporary (Winter) layoff

5) Reduce Salary/Wages

6) Use a commission scale to help the business when sales are slow

7) Change management roles to be more directly operational and/or sales (commission based)

8) Close locations

9) Negotiate to reduce your rent

10) Turn down the furnace thermostat

11) Turn off the lights, 10-keys, computers

12) Go digital with as many of your processes as possible

13) Reduce your inventory

14) Reduce your debt

15) Sell assets



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