1. Implement a robust forecasting system

  • Description: Predict future cash inflows and outflows using historical data and predictive analytics.
  • Implementation plan: Invest in cash flow forecasting software, train financial team to use it, and integrate with existing accounting systems.
  • Roles & responsibilities: CFO to oversee, financial analysts to update and maintain the system, IT support for software integration.
  • KPI's: Accuracy of forecasted vs. actual cash flow, frequency of updates.

2. Expedite invoicing and receivables collection

  • Description: Speed up the process of collecting money owed to the business.
  • Implementation plan: Implement electronic invoicing, set shorter payment terms, and possibly offer discounts for early payments.
  • Roles & responsibilities: Accounts receivable team to monitor and follow up on outstanding payments.
  • KPI's: Days Sales Outstanding (DSO), percentage of on-time payments.

3. Reduce unnecessary expenses

  • Description: Regularly review and cut down on superfluous expenses.
  • Implementation plan: Conduct a monthly or quarterly expense audit.
  • Roles & responsibilities: CFO, department heads, and financial analysts.
  • KPI's: Reduction in monthly/quarterly operating expenses.

4. Keep a cash reserve

  • Description: Maintain an emergency fund to handle unexpected expenses.
  • Implementation plan: Set a percentage of monthly profits to be set aside into a reserve account.
  • Roles & responsibilities: CFO and financial controllers.
  • KPI's: Amount in cash reserve, number of times reserve is tapped.

5. Optimize inventory management

  • Description: Ensure you’re not tying up too much cash in unsold inventory.
  • Implementation plan: Implement just-in-time inventory system or refine inventory forecasting.
  • Roles & responsibilities: Inventory managers, procurement team.
  • KPI's: Inventory turnover rate, holding costs.

6. Secure a line of credit

  • Description: Have access to funds in case of cash flow shortages.
  • Implementation plan: Establish a relationship with financial institutions and negotiate favorable terms.
  • Roles & responsibilities: CFO and finance team.
  • KPI's: Interest rates, utilization rate of credit line.

7. Regularly review pricing strategies

  • Description: Ensure products or services are priced correctly in the market.
  • Implementation plan: Conduct market research and competitor analysis.
  • Roles & responsibilities: Sales and marketing teams.
  • KPI's: Gross margin, sales volume.

8. Implement a tiered payment system

  • Description: Offer multiple payment plans to cater to different customer needs.
  • Implementation plan: Develop and market multiple pricing tiers or subscription models.
  • Roles & responsibilities: Sales, marketing, and financial teams.
  • KPI's: Customer acquisition and retention rates, average revenue per user.

9. Streamline operations

  • Description: Make business processes more efficient and cost-effective.
  • Implementation plan: Adopt lean methodologies or other process improvement techniques.
  • Roles & responsibilities: Operations managers, department heads.
  • KPI's: Operational costs, process lead times.

10. Negotiate longer payment terms with suppliers

  • Description: Extend the time you have to pay your bills without incurring penalties.
  • Implementation plan: Engage with major suppliers to negotiate extended payment terms or discounts.
  • Roles & responsibilities: Procurement and accounts payable teams.
  • KPI's: Average days payable, discounts achieved.

Please note that the above options are crafted based on generalized situations, and the context and unique attributes of your organization should be considered for tailored solutions.

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