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How to manage cash flow At Different Stages of Business?

We understand that it might be hard to hire a professional accountant to help you manage and sustain a steady cash flow. The good news, however, is that there are many financial management tools available to help with this like Paci Finance.

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How to manage cash flow At Different Stages of Business?

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  1. HOW TO MANAGE CASH FLOW AT DIFFERENT STAGES OF BUSINESS Presented by Paci AI

  2. INTRODUCTION Any business's life cycle has four main stages: launch, growth, maturity, and decline/renewal. Most businesses are typically unable to determine which stage their industry is in, which causes them to lose out on many managerial chances. For instance, a business's slow sales growth is not a sign of its expansion. It's crucial to have a thorough awareness of each stage of your company's life cycle in order to be ready to handle any issues that may arise.

  3. DIFFERENT BUSINESS LIFE CYCLE PHASES LAUNCH GROWTH DECLINE OR RENEWAL MATURITY

  4. LAUNCH PHASE Time and money are two things that a business needs most when it is in the launch phase because it is about to get established in the market. As your sales are modest at this point, there's a chance you'll wind up spending more on establishment, which will cause a slow cash flow. At this point, budgeting and forecasting are essential for every organisation. Establish rigorous payment conditions to control receivables. You can effectively create a cash reserve for unforeseen expenses by doing this.

  5. GROWTH PHASE After you have successfully navigated the launch phase, it is time to focus on expanding your company. One of the best strategies for increasing profit and ensuring steady revenue is to bring in new clients. Positive cash flow is the term used to describe this additional cash inflow. Your company will advance with good cash flow.

  6. MATURITY PHASE After you have successfully navigated the launch phase, it is time to focus on expanding your company. One of the best strategies for increasing profit and ensuring steady revenue is to bring in new clients. Positive cash flow is the term used to describe this additional cash inflow. Your company will advance with good cash flow.

  7. DECLINE/RENEWAL PHASE If your company is in the decline stage, it will experience a decline in market share, a decline in sales, and even a reduction in earnings, which will cause problems with cash flow. At this point, you must examine your cash flow to identify potential areas for cost-cutting. You can revitalise a dying business in a variety of methods, such as by purchasing related new enterprises in the industry. If it turns out that the company cannot be revived, ethical closure will be required.

  8. CONCLUSION We understand that it might be hard to hire a professional accountant to help you manage and sustain a steady cash flow. The good news, however, is that there are many financial management tools available to help with this like Paci Finance. So, even at the launch phase of your business, you can easily track the cash flow status of your business and take the necessary steps.

  9. THANK YOU

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