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  • How to get formidable sales momentum in 2018

    No doubt you’ve already dived into 2018 full of vigour and enthusiasm for a fresh year of successes, challenges and victories. And you’ve got a sales target to hit or beat. But what will happen in 3 months’ time? 6 months’ time? If we’re honest keeping up the momentum on sales is tough, and doesn’t just happen. It’s so easy to give up – it’s our greatest weakness! But when it comes to sales targets, there’s no way anyone can afford to give up in 2018. With the shifts and challenges we’re seeing in the business environment, we can see that keeping up momentum on sales is going be more essential than ever in 2018!

    Fri, 09 Feb 2018 12:16:44
  • 2017 a challenge? 1 way to make 2018 a success

    The key to success in 2018 can be summed up in one word: focus. It can so easily feel that somehow if we try and do something with lots of opportunities, one or two of them will work out, and we’ll get some good results. But we see time after time it doesn’t work. Time is limited. Money is limited (normally!) Your energy and the energy of your team isn’t infinite. So how do we achieve a laser like focus in 2018?

    Thu, 08 Feb 2018 18:07:24
  • Is your business breathing?

    In a recent analogy, cash was likened to oxygen. We couldn’t agree more with this. So the next question is – have you got enough oxygen? Is your business breathing sufficiently to a) stay afloat and ensure you are in business in 2018, and b) generate surplus cash in view of future needs?

    Wed, 04 Oct 2017 08:18:15


How to get liquid in 2016

|  Posted 17th Feb 2016

 

 


What our clients say:

Thank you very much for coming to see us, it is much appreciated by us and we can only gain from this regular contact to get strong cash wise.

We took your advice on debtors when you were here last ... and it's worked!

 


Case Study:

Wholesaler, North West

Business was profitable, but running at a cash deficit of around £50k p.a, with an overdraft that was increasing every year.

In our consultative visit we were able to demonstrate how small changes would revolutionise the business into a cash generating organisation, generating £260k cash in just 12 months.

 

How to get liquid in 2016



Imagine it’s a Thursday afternoon.  The phones are howling – your suppliers are chasing you for overdue payments, and the bank are pressing for a meeting to review your latest accounts and to review your facilities (which are all being used to the limit), and your employees are all hoping to be paid by the end of the day (but you’re not sure how).  Hopefully you've never been in a situation like that, but here's how to ensure you never will.

In business, you’ll have certain assets that will turn into cash within the next 12 months (i.e. trade debtors) and you have certain liabilities that need to be paid within the next 12 months (i.e. trade creditors, VAT etc).

If you don’t have enough current assets to pay the current liabilities, then you’ve got a liquidity problem, and when the situation isn’t addressed, that’s when you end up with a situation described above.



 

So liquidity gives you choices, and gives you freedom.  It means when a big opportunity comes up, you’re able to move to take advantage of it, because you’ve got the resources available.  That’s important, because it means you’ll be able to take opportunities to improve profitability and grow your business, allowing you to build a stronger, more valuable business.

Liquidity also gives you time and space to make decisions, so you aren’t forced into a tight situation where you are at the mercy of your creditors, the banks or anyone else apart from you.

So if liquidity is so important, how can you improve in 2016?  Here’s some key points:


1 – Have a plan, and stick to it
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Retaining net profit after tax and owners drawings is absolutely key to improving liquidity.  This doesn’t just happen automatically!  You need a clear plan setting out how you’re going to make a true net profit, and you need to stick to it by regularly reviewing where you are against it, taking the action needed to stay on track. 


2 – Restructure finance if you need to
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Check whether your finance is structured properly.  By this, we mean make sure you are not in a situation where you are using short term finance (e.g. overdraft, invoice finance) as a long term fixture.  Keep short term finance available for short term needs.


3 – Control stock
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High levels of stock drag liquidity down, so challenge your current stock levels.  Can you clear any of it quickly?  Do you really need to hold high levels of stock in the modern business environment?  Can you buy in smaller quantities?


If you’d like help to improve liquidity in 2016, then please get in touch with us – we’ll be more than happy to help.

Contact:
Carl Taylor
E carl@oldfieldaccountants.co.uk
T 02476 673 160

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Oldfield Accountants
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Telephone: +44 (0)24 7667 3160  Fax: +44 (0)24 7671 5510
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