Are you looking for ways to increase profits for your food and beverage business? Need a proven food enterprise resource planning software (ERP) solution? Cash flow is a crucial part of any organization.
A lack of money can cause a business to fail. Taking the right steps to manage cash flow can reduce issues. These include:
- Manage credit control
- Sales forecasting
- Negotiate credit terms with suppliers
- Manage stock levels
Small business cash flow is a concern of company owners everywhere. More than half of U.S. small business owners (52%) have lost at least $10,000 when passing up a project or sales due to insufficient cash flow. Fortunately, these solutions can help you get ahead before it really becomes a problem.
Manage credit control
Credit is a convenient way to increase inventory and take care of business expenses when you need it. Learning how to manage credit early on will keep you out of trouble in the future.
That being said, never rely on credit. Credit adds up over time and will eventually run out.
Sales forecasting is about predicting what will happen in the future so you can plan for cash flow peaks and valleys. Once you have a little sales experience, you can forecast cash flow.
Use market knowledge, competition, pricing, the economy and anything else that influences the amount you make and spend. It’s better to be too cautious than overly optimistic.
Though you may find it challenging to manage your cash flow, you’ll eventually turn those concerns into smart money management. This will remove you from the 90% of business owners whose companies failed due to cash flow problems.
Negotiate credit terms with suppliers
One way to manage your cash flow is to negotiate credit terms with suppliers. Extending the payment terms gives you more time to pay without being penalized.
Holding onto your money for a little longer allows you to regulate cash flow in your business. For example, if you are expected to pay a supplier in 30 days, ask if you can extend it to 60 or 90 days instead.
Negotiate payment plans for sizable orders so you won’t need to pay large sums all at once. You can then make regular smaller payments that are easier to manage over time.
Manage stock levels
Monitor your stock closely so you’ll always know what you need and exactly when you need it. Only order those items that are running low and the exact amount that you need in order to avoid unnecessary spending and waste.
Figure out what sells quickly and will be most profitable. This results in a steady income and keeps you from holding onto items that are slow-moving or don’t shift easily. This keeps you from tying up funds you could use somewhere else.
Manage cash flow with Sage X3
Sage X3 is an enterprise resource planning software solution that helps you manage your cash flow:
- Accurately calculate profits
- Strike a balance between supply and demand
- Attract new customers digitally
- Improve your profit margins through savings
Sage X3 is easy to use. It can be accessed from anywhere, offers exponential opportunities for growth and keeps you in the loop.
Want to know more about the food ERP for managing your cash flow today? As a Sage X3 partner, NexTec ensures the fastest ROI on your ERP investment.