Connect with us

Business

SMALL BUSINESS OWNERS: HOW TO IMPROVE YOUR CASH FLOW

Published

on

Small business owners: how to improve your cash flow

As a small business owner you’re undoubtedly aware that cash flow is everything. Not only is cash flow important for your day to day operations, but the Small Business Administration reminds business owners that cash flow is also of vital importance when attempting to acquire a small business loan. Improving cash flow is important for small businesses in all industries, but it’s more important for businesses that require cash to operate, such as the food service industry and many retail locations.

Building the Right Infrastructure

Small business owners: how to improve your cash flow

Small business owners: how to improve your cash flow

Without a current cash flow analysis, you’ll never have a good picture of the profitability of your company and you won’t know whether or not your cash flow is actually improving. If you’re interested in improving your cash flow, you may want to invest in an accounting suite such as Intuit bookkeeping software. An accounting suite, when used properly, will be able to generate financial statements on the fly to show you whether your strategies are working. Once you’ve invested in accounting software you can create an accounting structure, as described by American Express Open Forum.

Focus on Getting Paid
Many small business owners struggle with collections. Getting paid should be your first priority when you’re attempting to improve your cash flow. Once you have your accounting system setup properly, you can go over the accounts that are seriously delinquent and create protocols for dealing with collections. Inc.com suggests that you maintain open communication with all of your delinquent customers, even those that are only 30 days late. Maintaining open communication is a good way to identify any unhappy customers and iron out any disputes that could be delaying payments.

Manage Your Inventory
Many businesses, especially new upstarts, suffer by maintaining too large of an inventory. Reducing your inventory is a fantastic way to improve cash flow and create a leaner business. As noted by Microsoft Small Business, even small inventory changes such as cutting back on the stock of a particular item can yield positive results for a company. You should avoid the urge to purchase more inventory than you can move, especially when first starting your business.

Give Them More Options
The days of relying on cash and check are over. If you find that you continuously have issues with payments, you may want to broaden your payment options. Denise O’Berry encourages business owners to offer as many payment options as possible. Whether your company specializes in business-to-business sales or direct-to-consumer sales, the ability to pay via debit or credit card may be the difference between whether you get paid today or tomorrow. Alternative payment methods such as PayPal are also becoming incredibly popular throughout many industries, and physical payment portals such as mobile card swiping devices can further encourage customers to pay when they can.

Developing your cash flow analysis is only one part of the financial puzzle. Once you have established procedures for accurate cash flow, you can begin building a solid financial system. You should create protocols for the collections of past due accounts, ensure that vendors are paid on time and analyze your cash flow to determine any areas which your company can improve.

Business

Boeing planned to replace 777 engine covers before failures: WSJ

Published

on

Boeing planned to replace 777 engine covers before failures: WSJ 1

(Reuters) – Boeing Co was planning to replace engine covers on its 777 jets months before a pair of recent serious failures, the Wall Street Journal reported on Thursday, citing an internal Federal Aviation Administration document.

The U.S. Federal Aviation Administration (FAA) on Tuesday ordered immediate inspections of 777s with Pratt & Whitney <RTX.N> PW4000 engines before further flights, after an engine failed on a United Airlines 777 on Saturday.

The planemaker and the FAA had been discussing potential fixes for about two years, following an earlier incident in 2018, according to the Journal.

Boeing did not immediately respond to a request for comment.

Although immediate attention has focused on the engine’s manufacturer, Pratt & Whitney, Reuters has reported that its cowling, or casing, is manufactured by Boeing.

Boeing has declined to comment on its manufacturing role and referred questions on the part to U.S. air accident investigators.

The inspections affect older 777s fitted with Pratt & Whitney engines. Newer models, mainly powered by rival General Electric, are not affected.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Ramakrishnan M. and Jane Merriman)

Continue Reading

Business

GameStop rally builds after puzzling ice-cream cone tweet

Published

on

GameStop rally builds after puzzling ice-cream cone tweet 2

By Aaron Saldanha

(Reuters) – GameStop Corp shares surged more than 50% in early deals on Thursday as amateur investors jumped back into the stock weeks after an unprecedented short squeeze triggered a 1,600% rally in the video game retailer.

The latest moves build on Wednesday’s rally in GameStop and other so-called “stonks” – an intentional misspelling of “stocks” – favored by retail traders on social media sites such as Reddit’s WallStreetBets.

The new frenzy puzzled analysts, who had ruled out another short squeeze of the stock which had battered some hedge funds, and fueled more hype after some Twitter users pointed out a cryptic tweet of an ice-cream cone photo from activist investor Ryan Cohen – a major shareholder in GameStop and a board member.

A short squeeze takes place when the price of a heavily-shorted stock rises sharply, forcing short-sellers who had bet against the stock to buy it at those prices to avoid further losses.

GameStop shares were up 54.5% in trading before the bell at $141.70 at 0630 ET. Headphone maker Koss Corp surged 57%, while cannabis company Sundial Growers rose 10%.

Shares of cinema operator AMC Entertainment, another stock caught up in last month’s rally, jumped 17% in pre-market trading on Thursday following an 18.1% rise on Wednesday.

Reddit discussion threads were buzzing again about GameStop on Thursday, with members exhorting others to pile into the stock as the rally gathers steam.

“Bought lots more #GME today, let’s keep fighting !!,” wrote one Reddit user Fundssqueezzer, while another user Responsible_Fun6255 said, “Rise of the planet of the ape: GME edition”.

Earlier on Thursday, GameStop’s Frankfurt-listed shares trebled at one point, overshooting its 100% surge on Wall Street overnight, as European retail traders joined in the fresh buying push.

The sharp moves surprised the market, which thought the excitement behind the recent Reddit-fueled rally had died down.

RISKY BETS

GameStop shares skyrocketed in January as retail investors, urged on by popular Reddit forum WallStreetBets, bought the stock as a way to punish hedge funds that had taken an outsized short bet against it.

The squeeze “personally humbled” Melvin Capital’s Gabriel Plotkin, whose firm was left needing a $2.75 billion dollar lifeline supplied by hedge fund Citadel LLC’s Kenneth Griffin and Point72 Asset Management’s Steven Cohen.

The risky trading strategies employed by some traders on Reddit have drawn the ire of investing legends such as Charlie Munger, long time business partner of Warren Buffett.

“It’s really stupid to have a culture which encourages as much gambling in stocks by people who have the mindset of racetrack bettors,” said Munger, Berkshire Hathaway’s vice chairman.

GameStop’s U.S.-listed shares soared nearly 104% on Wednesday. The volatility in GME, AMC Entertainment and other stocks led to outages on Reddit and periodic trading halts by the New York Stock Exchange.

Online brokerage Robinhood said in a tweet that the NYSE action would impact all brokerages, but that it had not paused trading on the shares.

“It’s a pretty risky play to try and buy now … what we might (see) at the open of the cash market is some people trying to get in,” said Oriano Lizza, premium sales trader at CMC Markets in Singapore, which does not offer pre- or post-market trade.

The latest surge comes after a couple of weeks that saw the shares move in relatively tighter ranges.

“It’s a marathon, not a sprint. Whatever happens resist the urge to sell. The longer we hold the higher it goes,” said @catchme1fyoucan, an Italy-based user of retail trading platform eToro, in a discussion on GameStop

(Reporting by Aaron Saldanha in Bengaluru, Tom Westbrook in Singapore and Danilo Masoni in Milan; Additional reporting by Sagarika Jaisinghani; Writing by Anirban Sen; Editing by Jason Neely and Bernard Orr)

Continue Reading

Business

GSK narrows focus on elderly in trial to treat pneumonia from COVID-19

Published

on

GSK narrows focus on elderly in trial to treat pneumonia from COVID-19 3

By Ludwig Burger

FRANKFURT (Reuters) – GlaxoSmithKline will extend a trial testing an experimental rheumatoid arthritis drug on patients suffering from pneumonia related to COVID-19 to focus on the elderly as it seeks to firm up encouraging findings so far.

A trial started in May last year has shown that the drug known as otilimab helps patients over 70 with severe COVID-19 get off mechanical ventilation or high-flow oxygen support faster, the British drugmaker said on Thursday.

The benefit for younger trial participants was not clear enough to merit further investigation, prompting the re-focus on the elderly in a follow-up trial with a targeted 350 participants.

After 28 days of treatment, 65.1% of elderly patients on otilimab plus standard of care were alive and free of intensive respiratory support, compared to 45.9% of patients who received the standard of care alone, according to the trial results.

Effective COVID-19 treatments are still in high demand as vaccination campaigns are only ramping up gradually and as new variants of the coronavirus spread rapidly.

“Given the profound impact this pandemic is having on the elderly and the encouraging data we are sharing today, we are hopeful this finding will be replicated in the additional cohort,” said Christopher Corsico, GSK Senior Vice President Development.

GSK, which acquired rights to otilimab from German biotech firm Morphosys in 2013, said it expects first results of the extended trial in the third quarter of this year, to be followed by talks with regulators if the initial findings are confirmed.

Many patients with severe COVID-19 suffer from an over-reaction of the immune system known as cytokine storm and GSK aims to reaffirm that the drug, originally designed to fight an autoimmune disease, can help.

Attempts to repurpose existing drugs to rein in an overactive immune system in COVID-19 patients have had mixed results.

AstraZeneca’s blood cancer drug Calquence failed to help severely ill COVID-19 patients. Roche’s arthritis drug Actemra, in turn, was shown to cut the risk of death among patients hospitalised with severe COVID-19.

GSK, and other drugmakers, are also working on antibody-based drugs that block the virus directly.

GSK has also brought to bear its knowledge on adjuvants, which are efficacy boosters used in many vaccines, working with partners including France’s Sanofi.

In addition, it is collaborating with CureVac on a next generation of vaccines that protect against new coronavirus variants.

(Reporting by Ludwig Burger; editing by Emelia Sithole-Matarise)

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Latest Articles

Newsletters with Secrets & Analysis. Subscribe Now