Regular Audits: Conducting regular inventory audits helps identify slow-moving items, enabling businesses to adjust purchasing decisions and avoid overstocking. Just-In-Time Inventory: Adopting a Just-in-Time (JIT) inventory system reduces holding costs, freeing up cash by ensuring stock is only ordered and received as needed. Vendor Negotiations: Negotiate favorable payment terms with suppliers, such as extended payment periods or bulk purchase discounts, to optimize cash outflows. MANAGING INVENTORY EFFICIENTLY Line of Credit: Securing a line of credit provides a safety net during cash flow crunches, offering flexible access to funds as needed, typically at lower interest rates than credit cards. Invoice Financing: Leverage invoice financing to receive advances on outstanding invoices, mitigating the impact of late payments on cash flow. Asset Refinancing: Refinancing assets such as property or equipment can release equity, providing an immediate cash influx for the business. EXPLORING FINANCING OPTIONS CONTROLLING OPERATING EXPENSES Cost Analysis: Regularly reviewing and analyzing operating expenses identifies areas for cost reduction, potentially leading to significant savings and improved cash flow. Costs can potentially be driven down by the use of GAI. In 2023 it’s estimated that 35% of companies globally use AI and a further 50% say they will use AI in the future. Energy Efficiency: Investing in energy-efficient equipment and practices reduces utility bills, contributing to long-term savings and environmental sustainability. Outsourcing Non-Core Activities: Outsourcing tasks that are not central to the business, such as janitorial services or IT support, can be more cost-effective than maintaining in-house teams. Finance Monthly. Business 47
RkJQdWJsaXNoZXIy Mjk3Mzkz