Sales are good, but cash is always short
The counter is busy, yet there is never enough money for the supplier. Here is where it goes.
This is the most common complaint from busy shops. Sales are real, but cash keeps disappearing. Usually the money is not lost. It is stuck.
Where the cash gets stuck
- On the shelves. Stock bought in bulk for a discount sits for months.
- With customers. Udhaar given freely and collected late.
- In the owner's pocket. Personal and business money mixed in one drawer.
Three fixes to start this week
- Write every day's sales and expenses in one line at closing. Patterns show up within two weeks.
- Keep business money in a separate account or box, and pay yourself a fixed amount.
- Before the next bulk purchase, ask how many weeks it will take to sell. If the answer is "many", buy less.
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