East Partners Blog

Understanding working capital to maintain business success

If cashflow is the lifeblood of your business, then working capital is the health check you should regularly undertake to keep your business alive. Regularly checking working capital will play an essential part in maintaining business success during these times of greater economic insecurity.

Shortening your working capital cycle to free up cash

The impact of Covid-19 has shown us that even profitable businesses can go broke if they run out of cash. Understanding and managing your working capital cycle frees up your cash and helps you build a cash war chest to get you through tougher times. Your working capital cycle is the […]

Increasing your stock turn in a slow-moving economy

If you sell stock or inventory, it’s essential you understand stock turn and how to increase it. Obsolete, or ‘dead’ stock will harm your cashflow and your ability to increase profit, particularly in a slower-moving economy. The longer stock takes to sell, the longer you have your cash tied up in […]

Reducing your lock up days to free up cash

It’s vital for businesses to free up as much cash as possible, particularly in these tough economic times. Your ‘lock up days’ is the number of days it takes to convert your debtors, stock and work in progress into cash. A high number of lock up days means your business needs […]

Understanding your numbers to improve your results

Understanding your financial reports, or knowing your numbers, is critical to business success. It allows you to make better business decisions, measure the impact of those decisions, take corrective action where necessary and, ultimately, enjoy better results. By understanding your financial reports, you’ll: Know if your business is growing or shrinking […]

What do you want from your business?

When you started your business, you probably dreamed about flexible hours and highly profitable, stimulating work. Ideally, you would’ve adopted best practice and documented those dreams in a one-page Business Plan. The plan would specify how much cash you need from the business, your role, and the hours you’d be working. […]

The seventh way to grow your business – Reduce overheads

The seventh way to grow your business is to reduce your overheads. These are the fixed costs in your business that don’t change much as your sales increase, e.g. phone, power, rent, interest, etc. How often do you review your overheads? You should do this at least annually. Simply go through […]

The sixth way to grow your business – Reduce your variable costs

The sixth way to grow your business is to reduce your variable costs. These are the costs which increase as sales increase. By reducing your variable costs, you increase your profit margin. For some businesses, focusing on reducing variable costs is fundamental to their growth, particularly if their gross profit margin […]

The fifth way to grow your business – Increase transaction value

The fifth way to grow your business is to encourage your customers to spend more each time they buy. There are hundreds of ways to do this. The key is to develop strategies that add value to the transaction instead of simply increasing the price.

The fourth way to grow your business – Increase transaction frequency

The fourth way to grow your business is to entice your customers to buy from you more often. Remember, it’s easier to sell to an existing customer than to a new one. Many of the strategies to increase transaction frequency are simply best practice in business. However, you must have a […]

The third way to grow your business – Increase your sales conversion rate

The third way to grow your business is to increase your conversion of prospects to sales. This is relevant to all businesses, but particularly relevant to those who prepare proposals and quotes on a regular basis.

The second way to grow your business – Generate more leads

The second way to grow your business is to generate more leads. A lead is someone who has responded to your marketing in some way; they have some level of interest in your product.