Recommendation for these business use its cashflow statement

Question

ticcius · Answer

based on the provided cash flow statement, it appears that the seaside hotel business is generating positive net cash flow in the first month and negative net cash flow in the remaining 11 months. this means that the business will need to find ways to manage its cash flow effectively to ensure that it has enough funds to cover its expenses. here are some recommendations that the business could consider to improve its cash flow situation:

increase sales: the business could explore ways to increase its sales revenue, such as marketing campaigns or expanding its offerings. this could help increase the inflow of cash and improve the business's ability to cover its expenses.manage expenses: the business could also review its expenses to identify areas where it can cut costs. this could include negotiating with suppliers to get better prices or finding ways to reduce staff costs.improve credit management: the business could also focus on improving its credit management processes to ensure that it receives payments from customers on time. this could include setting up a system to track outstanding payments and following up with customers to remind them of their outstanding balances.consider alternative funding sources: if the business continues to struggle with cash flow, it may be worth considering alternative funding sources such as loans or equity financing. however, it is important to carefully consider the terms and conditions of any financing arrangements to ensure that they are sustainable and will not put the business under undue financial strain. overall, the business should focus on improving its cash flow management processes and finding ways to increase its revenue and reduce its expenses. by doing so, the business can improve its financial stability and ensure that it has the funds it needs to operate effectively in the long term.

expertsolution · Answer

answer:based on the provided cash flow forecast, here are some recommendations for the seaside hotel to improve its cash flow management:

increase cash sales: the hotel can focus on increasing its cash sales to generate more cash inflow. this can be done through various marketing and promotional activities such as offering discounts, referral programs, and loyalty programs.reduce credit sales: credit sales can result in delayed payment and affect the cash inflow of the hotel. the hotel can reduce credit sales or offer credit sales only to regular customers with a good payment history.reduce purchases: the hotel can analyze its purchases and identify areas where cost-cutting can be done. negotiating with suppliers and switching to cheaper alternatives can help reduce the purchases and increase cash inflow.manage raw materials: the hotel can manage its raw materials efficiently by minimizing waste and optimizing the inventory level. this can help reduce the purchase of unnecessary raw materials and improve cash flow.optimize staffing: the hotel can optimize its staffing to reduce the salary and wage expenses. this can be done by identifying the peak hours and adjusting the staffing accordingly.evaluate loan interest: the hotel can evaluate its loan interest rate and look for better alternatives if possible. lower interest rates can reduce the interest expense and improve cash flow.plan for contingencies: the hotel should plan for contingencies such as unexpected repairs and maintenance expenses. maintaining a contingency fund can help the hotel to manage such expenses without affecting its cash flow. by implementing these recommendations, the seaside hotel can improve its cash flow management and ensure its financial stability in the long run.

Category:	Business
Offered Price:	$3.99
Due Date:	2 March 2023, 03:40
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Recommendation for these business use its cashflow statement

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