Updated: Nov 4
According to the National Association for Business Economics released its monthly outlook for May, with panelists surveyed increasing their inflation expectations for both 2022 and 2023. The inflation rate for the United States was set to reach 6.56 percent in the first quarter of 2022. According to the forecast. Energy prices increased 30.3%. Food prices jumped 9.4%, the most since April 1981.
Recession Proof Your Business by Simply Connecting the Dots to Boost Your Cashflow.
Uncertainty is a part of life, and it can’t be avoided. The best way to deal with it is to learn techniques that help you live with the situations. Everything is connected to something else. Uncertainty can happen anywhere and at any time from the raise of unemployment rates, massive layoffs, economic recession, a person's health to the unexpected and the unfortunate events. Life is full of uncertainty; we’ve just got to learn to live with it. The true is, if you're well prepared and aware then there isn't much to panic about.
1. Know Your Number
As a business owner, you have to know your numbers. Manage overhead costs is essentially necessity. Business overhead costs are expenses that are related to the day-to-day running of a business. Reducing overhead costs is important in a business downturn. When business is slow, cutting overhead costs is normally one of the easiest ways to minimize losses and return your business to normality and ultimately profitability.
Business overheads which usually include
Your rental space, insurance and contracts.
Your utilities, maintenance, repairs and misc. expenses.
Your sales and marketing, inventory, product ordering, vendors, payroll down to your revenue streams.
Your restaurant revenues are usually coming from these areas:
Your daily revenue, and sales per table revenue.
Your bar/alcohol sales.
Your to-go sales, deliver services and referrals.
Your ability to upsells, restaurant special promotions, offers and giveaways.
Your online orders, reservations, walk-ins, to various traffic leads.
Again you have to know your numbers especially the different between cash inflows and cash outflows. The rule is when your restaurant's cash inflows exceed your outflows, you get positive cash flow. And certainly, this increases your business's cash account and provides money to grow your business.
2. Start Boosting Your Cash Flow. I Mean Now.
Can your business survive a cash crunch? In addition to monitoring your restaurant’s cash flow from week to week is necessity, but also having a Basic Fundamental Understanding of Your Cash Flow Activities is a good way to start.
Understand this, there are two main types of cash flows - cash inflows and cash outflows. However, first of all, let's simplify this cash flow concept. Your restaurant’s cash inflows usually include cash received from customers, money received from selling assets and cash obtained from financing sources. Your cash outflows for a restaurant usually consist of cash spent on operating costs, money used to buy assets and money paid to financing sources, such as dividends distributed to investors. The basic rule is when your cash inflows exceed your outflows, you get positive cash flow. And in terns, this increases your cash account and provides money to grow your business.
A. Monitoring your numbers. First, monitoring your cash flow allows you to see how your sales, and the corresponding cash flow, ebb and flow over time. At the same time, it also makes it easier to create an accurate forecast of your sales and cash flow projections. As a business owner, tracking your cash flow on a weekly can highly beneficial the foundation of your restaurant business. Understanding the fluidity of sales cycles is very necessity.