Business Management Write for Us
Business Management Write for Us starting the business, the situation of a company is often very fragile. It is usually only after a limited year that we manage to obtain a solid foundation. Therefore, it is advisable to limit as much as possible the fixed costs when starting the business and give preference to variable costs (there are expenses when there is activity).
If the company experiences a trough of activity, the company has to make more easily at the level of expenses. A company must operate with an optimal level of stock to avoid several difficulties. Having too low stock can lead to stock-outs that can have dramatic consequences for a company.
On the contrary, too large a stock leads to additional costs for the company, cash lags (because we pay most of the time a supplier with to receive payment from the customer), and a risk of greater loss (perishable products, out-of-date items.
Without experience in the field of activity trained, the optimal stock is a hard parameter to evaluate at the start of the business. The follow-up of accounts receivable is important for a company, and it is necessary to be attentive from the invoicing process to the collection of customer receivables.
The invoice must be sent to the customer soon at the latest at the delivery of the goods. The few days or weeks gained will immediately impact the company’s cash flow: the earlier the customer is invoiced, the faster the deadline arrives.
The implementation of a down payment on order is also positive for the company’s cash flow. As soon as an overrun of the deadline is noted, the customer must be restarted. It is advisable to contact him to inform him of the situation to explain (it may be a simple oversight).
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