Blog

The Biggest Challenge With Manufacturing, And What You Can Do To Fix It

19-October-2020
19-October-2020 13:03
in Business Coaching
by Tim J Seymour

I speak to many Manufacturing Business Owners, and nearly all of them tell me The Biggest Challenge With Manufacturing is Managing The Business Cash Flow

A Manufacturing Businesses will often purchase raw materials, that are required at the start of the Manufactuing Process, long before the final product is produced and ever longer before the money, from the customer, actually reaches the bank account.

If the Business is looking to scale up production there will potentially be an even heavier burden on cash flow with larger amounts of Raw Materials required then before.

Owners should be aware of the current and forecasted cash flow position which should be constantly reviewed and updated in line with Future Production Schedules.

Not having enough cash in the bank can ultimately slow down the whole production process by not being able to add skilled labour and even order raw materials, which will of course, hinder any plans to make the business increase profitability.

What Can You Do To Fix This Problem?

 

The answer is of course to Improve the Cash Position of the Manufacturing Business.

So, how can a business improve cash flow?

Implementing the Profit First system will help the Owners of Manufacturing Firms take control of the Business Bank Accounts once and for all.

I can guide you, to help you put aside money directly from your Revenue stream into accounts for Profits, Owners Salary & future Tax Liabilities.

We will work together so I can help you take this money first, the remainder is what you have left to operate your business on, this will force you to find ways to reduce your Operating Expenses (Overheads), and believe me when I tell you there are many expenses you are paying for that you do not need, and we will find them and remove them from your business.

Together we will look to drive your Gross Profit Margins higher, reduce your Operating Expenses, increase your Profits, provide for your Tax and increase your Personal Income as the Owner of the Business, reducing your personal stress levels and providing that much sought after security, peace of mind and freedom you desired when you started up your Manufacturing Business.

If you would like to recieve my eBook entitled "5 Ways to Make Your Manufacturing Business More Profitable" please request your FREE COPY here

 

To get some help with your Business call Tim J Seymour:

01454 501 600