As small business owners it’s important to monitor the cash flow of your restaurant business.
Without money, you can’t pay your staff, suppliers, bills, stocking on inventory and more. Basically, you’ll be unable to keep your restaurant business running.
Cashflow issues are not exclusive to failing businesses. It usually happens when a business takes on more costs than they can manage which results in over-expenditure. There’s only so much that bank loans and credit lines can help you cover your losses.
So just what can you do to make sure that your restaurant business doesn’t run out of cash to support your business?
We’ve got you covered with these 4 tips that are sure to help you monitor your businesses cash flow so that you’ll always have reserves!
1. Decrease Your Overheads
If your restaurant sales are not meeting your expenses, you should start cutting from your payroll, inventory and other areas. Determine which items on your menu aren’t selling and strip them from the menu. Doing this will help you eliminate the amount of inventory you keep. If some days are slow, reduce the number of staffs on the floor and kitchen.
Be proactive about asking for help. If you have trouble meeting the month’s mortgage, call your bank and politely ask for an extension. They may be willing to help you make ends meet, as they
2. Determine A Weekly Cash Projection
Find this useful? share it with your employees or peers in the industry