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Business strategy
How to reduce the cash demands in the business
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[QUOTE="Augusta, post: 298069, member: 25283"] A highly cash demanding business means that the profit of the business will be affected. This is because the profit coming into the business will always he used for one money demanding activity or the other.it Is the duty of the business owner to reduce the factors that instigate money gulping things so how can this be remedied. Start by Adjusting your inventory as needed. you need to only buy the stock that the business needs Over spending on inventory makes the business more money depending You can lease your equipment instead of buying it. This will help the business to spend less especially on machines that are very expensive and money demanding You can go ahead to borrow money before you need it. this will help with money demanding items that might not be what can be overlooked. This help not to have a huge financial pressure on the business Another avenue is to reevaluate your business operations to reduce all operations that are more money consuming and gulp a whole lot of money from the business. you can switch up this if they will help to reduce the money demands of it You would need to restructure your payments and collections so they there will be a kind of equilibrium between the two. [/QUOTE]
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