IT IS the goal of every business to make a profit but before a profit can be made, the cash flow needs to be managed.
Research by the South African Institute of Chartered Accountants found that cash flow management is a problem for small businesses.
The chartered account institute said the skill of cash flow forecasting is specifically lacking. Cash flow forecasting is how to judge the money expected to flow into your business over a certain time, as well as the adjustments you can make to ensure you never run out of cash and risk insolvency.
Another way to make sure you have a steady flow of cash into your business, according to Viresh Harduth – vice president for new customer acquisition at Sage for Africa and Middle East – is to create and maintain your digital presence.
Go online or perish
When last did you open a physical copy of the Yellow Pages to find a business in your area? Like everybody else, you probably search for businesses and compare their prices online before purchasing.
With an online presence, it’s easier for new customers to find you, it’s easier to find new markets – locally and globally, it’s easier to engage with customers, and update your market by regularly publishing new content.
But, most of all, a digital presence means you are open for business 24/7!
Internet today, income tomorrow
The best reason for a digital presence is the opportunity to easily increase your business’ cash flow.
By working through a professional and secure e-commerce service, customers can view your products and services, buy or book them, and pay the account instantly. By giving customers different payment options – such as card payments, bank or EFT, phone wallets or even cash on delivery – you easily increase the cash flowing into your business.
If your business is tree cutting, start by publishing an article on what your customers could do with the wood from the large tree or trees in their garden, for instance.
