1. Business with poor profit

This is partly due to inability to attract new customer and unawareness of break-even sales. Set a sales goal and a profit margin to help set priority.

2. Poor trade receivable management

When business is growing, receivable management is neglected. In bad times, long overdue debtors could threaten your cash flow position. Solid collection procedure strengthen your debt recovery.

3. Did not prepare cash flow forecast

80% of the business failure is because of cash flow problem. It is vital to forecast the future cash flow in and cash flow out for the next 9 to 12 months. Cash flow template tells you if you have enough cash to pay your debts.

4. Unable to measure business performance

Fixed cost is not fixed when business is growing. Fixed costs is not reduced when sales is declined. Fixed cost could spread over a range of products and services. Identifying and eliminating the unprofitable products could turn around a loss in business.

5. Business without long term plan

Planning for eventuality is important because business valuation is based on cash flow projection. If equity fund raising is your endgame, stable cash flow forecast will increase the value of business, and the cost of fund will be cheaper.

Download Cash Template

This leadership note is created by G & A Group for its business communities to create sustainable businesses. For further information, please send a personal email to: galsco@gmail.com for free one-to-one mentoring by Dato George Lim.

Book A Mentor

Do you need further assistance? Please do not hesitate to contact us.

Email Now

Founded in 1999, G&A Group is a well-established integrated professional firm, dedicated to provide an effective solution for business planning, accounts, tax, finance, IT and performance management. We have a group of professional and enthusiastic team that embrace a vision to provide quality and reliable services. We look forward to, build a lasting relationship with you.

Please drop us a message at info@ga.com.my or visit our website at www.ga.com.my for more information or further enquiries.

If you need further assistance, please feel free to contact our G&A Group HQ or branch contact personnel:

OUR HOTLINE SERVICE: +6 1700 818 791

Disclaimer clause:
The information provided by G & A Group (“we,” “our”or “us”) on www.ga.com.my (the “Site”) [and our mobile application] is for general informational purposes only. All information on the Site [and our mobile application] is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site [or our mobile application].