cash flow drivers Archives | The Mango Method

Cash flow drivers #8: Lifestyle

By Jun Yan • 2 minutes of reading

It’s understandable to take money out of the business to fund the owner’s lifestyle. But how much can you take before it hurts your business?

By Jun Yan • 2 minutes of reading

Capital expenditure refers to investments, or big one-off costs. Capex will be a drain on your cash flow. Here’s how to keep track.

By Jun Yan • 3 minutes of reading

The longer you hold inventory, the worse your cash flow. What are the challenges of poor inventory control and how to manage it?

By Jun Yan • 3 minutes of reading

Creditors refers to the money that you owe to others and it can be one of the easiest drivers to get out of control in business processes.

By Jun Yan • 3 minutes of reading

Increasing debtors are a negative influence on cash flow. Understanding why payments are late can be essential to fixing the problem.

By Jun Yan • 3 minutes of reading

How to keep track of common operational expenses like rent, staff, general admin expenses and things like stock and subscriptions?

By Jun Yan • 3 minutes of reading

In general, the higher the gross margin, the better the cash flow. Learn what a good gross profit margin is and how it affects your cash flow.

By Jun Yan • 3 minutes of reading

One of the first drivers anyone in business will look at is revenue growth. Understanding how it is changing for your business is essential.

By Jun Yan • 4 minutes of reading

Any business owner who has a solid understanding of these cash flow drivers will be well placed for success and growth.