cashflow solutions

• What is the focus of the lesson on cash flow solutions?

  Strategies for cash flow surpluses and deficits
• What is a cash surplus?

  When a company earns more than it spends
• What is a major challenge of having a cash surplus?

  Ensuring the extra money is used wisely
• How can a business use a cash surplus effectively?

  By paying off debts
• Why is paying off debts beneficial during a cash surplus?

  It reduces future expenses and improves financial health
• What is another effective use of a cash surplus besides paying off debts?

  Investing in shares or real estate
• What can investments from a cash surplus lead to?

  Dividends or increased asset value
• What is a cash deficit?

  When more money leaves than enters a business
• What are two ways to address a cash deficit?

  Boost income or reduce expenses
• How can a company increase its revenue to combat a deficit?

  By raising prices without losing customers
• What is one method to sell more products?

  Using better advertisements to reach more people
• How can reviewing expenses help a business?

  It identifies costs that can be cut
• Why is it important to chase outstanding debtors?

  To ensure overdue payments are received
• How can reducing the credit period offered to customers help cash flow?

  It improves cash flow into the business
• What is a strategy to keep cash around longer?

  Delay payments for ordered items
• How can selling non-essential assets improve cash flow?

  It raises funds to deal with deficits
• Why might a business postpone expansion plans during cash flow challenges?

  To reduce outgoings in the short term
• What are the key strategies for addressing cash flow surpluses and deficits?

  • Pay off debts to reduce future expenses
  • Invest surplus for long-term gains
  • Increase revenue through price adjustments or sales
  • Cut unnecessary expenses
  • Chase outstanding debts for quicker payments
  • Reduce credit periods for customers
  • Delay payments to suppliers
  • Sell non-essential assets or inventory
  • Postpone expansion plans during deficits
• How does paying off debts affect future financial health?

  It lessens future expenses and improves stability
• What is the benefit of investing wisely with a cash surplus?

  It provides a cushion during slower revenue periods
• What should a business do if customers consistently pay late?

  Shorten the payment wait time
• What can be sold to improve cash flow in the short term?

  Unused assets or excess inventory