Good cash flow management practices will ensure that your business will always have positive cash flow. Here are some tips on how you can stay on top of your laundry shop’s cash flow management:
Regular collection
In a coin laundry, customers deposit their payment in the laundry machines. It is advisable to empty the collection from the machines daily and make a record of it. This way, you can keep track of the money collected and also use it to service your cash needs.
Good bookkeeping
Having a complete record of cash collected and expenses paid will give you a clear picture of the cash availability for your business at any point in time. Based on this knowledge, you would be able to foresee any shortcomings and remedy it well in advance.
Service payments
Some business expenses are fixed such as loan payments for machines, shop rental and employees’ salary if you decide to hire someone to look after your laundry shop. Then, there are variable expenses such as laundry supplies and utilities. It is important to service these payments above all else to maintain business continuity. Net cash after payment can then be used for other purposes such as marketing or advertising.
Plan ahead
Always set money aside for expansion, emergencies and opportunity purchases. By budgeting carefully and keeping within your business needs, it is possible for you to have the money you need to grow your business.
Short-term financing
This is a very useful tool to help you start your business. For a coin laundry, you may require financing to purchase all the machines needed to set up the operation. There are many business loans available in the market these days with competitive rates and flexible payment terms. Settle for the one that would suit your business needs and cash flow pattern.
With the above practices in mind, you would be able to manage your business cash flow effectively and run your laundry operations efficiently; most importantly, run it, profitably.
