Control the frequent periods of cash flow crisis
Only by managing cash flow well can catering enterprises achieve profitable results in their operations. For example, suppose a catering company is operating normally, and employees' salaries are paid one month later. In the course of operation, the payment cycle is much longer than the collection cycle. Theoretically, the more employees a company employs, the more interest-free loans it absorbs. The more business, the more interest-free loans from suppliers, and the faster the development of enterprises. Therefore, doing a good job in payment management will be an effective guarantee for the rapid development of enterprises.
However, when the following situations are encountered, a cash flow crisis is likely to occur, which requires special attention:
1. A period of rapid business growth
Because business growth will never be balanced, if the business model is not well designed in this period, it will lead to overstaffing or insufficient ability to resist risks. It is easy to see that the virtual business is not made in the end, and enterprises will face risks at this time.
2. When the potential payment cycle comes.
The rapid growth of business will weaken the ability of enterprises to control the payment cycle. Sometimes, in order to get more business, enterprises often delay the payment period, which leads to the decline of reputation and will eventually be punished. Some potential payment periods, such as rent, taxes and wages, are often not easily reflected in financial statements. Ignoring the existence of these periods will have a great impact on the cash flow of enterprises and bring problems to management.
3. The average collection period (DSO) is more than 35 days.
The average collection period, that is, the DSO value, can let us know the capital flow of our enterprise very clearly: when the DSO value of accounts receivable is less than that of accounts payable, your cash flow is benign; The greater the difference between the two, the faster the enterprise grows. The accounts receivable DSO also provides a warning value. If it exceeds 35 days, the enterprise is not suitable for blind expansion. At this time of expansion, the greater the DSO value, the greater the risk and the deeper the cash flow crisis.
The formula of DSO editorial comments is: average collection period of accounts receivable (days) = total accounts receivable/average daily sales. The greater the DSO value of accounts receivable, the higher the probability of bad debts, which means that you lend interest-free loans to others to do business. The DSO value of domestic general enterprises is often 35 days. In general, when the DSO of accounts receivable is less than or equal to 35 days, the financial position is good. )
4 The inventory is too large, especially when the inventory index is greater than 2.
Inventory not only occupies resources, but also depreciates at any time. Of course, the less the better. But inventory is sometimes essential in business. How to reduce the risk of inventory? Inventory index can be used to measure and grasp. The formula of inventory index is: weeks of inventory = inventory on hand/average sales in the past 4 weeks. When the number of inventory weeks is greater than 2, it means that the inventory is facing problems. If this number is greater than 5, the problem will become quite serious. If it is not solved as soon as possible, the development of the enterprise will be greatly affected. Benign inventory management can effectively promote the efficiency of capital flow and is a way to speed up capital flow.
Therefore, in daily operation, it is necessary for every restaurant owner to know clearly the cash flow.
"Three-step rule" for understanding financial situation
Starting from finding out the cash flow, family members of catering enterprises can know their whole financial health through a "simple and rude" three-step rule:
The first step is to determine the basic line of cash flow. First, calculate your cash flow.
① Monthly turnover
② Various costs (ingredients, manpower, rent, daily operation)
③ Amortization
Suppose a restaurant with an initial investment of 560 thousand yuan spent 450 thousand yuan on decoration+equipment+operation before opening. If amortized in five years, the monthly amortization amount is 45/(5* 12)=0.75 million.
Costs can be divided into fixed costs and variable costs. Variable costs are mainly meals (assuming 30%), and fixed costs are the expenses that must be paid every month, including rent (0.69W)+ labor (3W)+ utilities, office, etc. (16W)+ amortization (0.75) = 60400.
When the cash flow is 0 and reaches the critical point, the critical monthly turnover can be (6.04-0.75)/1-30% = 750,000.
Assuming the unit price is 25 yuan, the restaurant needs to receive at least (75,000/25) 30 =100 people every day to maintain the normal operation of the restaurant.
If there is a negative cash flow, don't panic first, make a forecast of your turnover first, then calculate how long you can persist without injecting new funds into the restaurant according to the existing funds, and then determine whether you really need to find new funds.
One way is to set an "alarm" for restaurants, determine a bottom line that must be reached, and grasp when new financial support must be obtained.
The second step is to find the break-even point.
The break-even point, as the name implies, is the critical point at which restaurants start to make profits. The critical point of cash flow calculation can ensure the survival of the restaurant, but it can't make the restaurant really profitable. Therefore, when the restaurant successfully crosses the lifeline, it will move towards the secondary goal, which is the break-even point. Break-even means that operating income can cover all costs, so when income is 0, the critical value of monthly turnover can be 6.04/(1-30%) = 86,000.
Similarly, you can set yourself a goal every day, which is at least (860002530= 1 15 person-times, and the average daily turnover needs to reach 2867 yuan. At this rate, the initial investment can be recovered in five years.
The third step is to calculate the "return on investment"
For the catering industry, the five-year payback period is too long, so we should set a higher level goal. Before setting this goal, you can use a small indicator to evaluate your ability to repay funds. This indicator is called the ratio of sales to investment, that is, the ratio of expected annual sales to initial investment. This ratio must be greater than 1 to recover. At present, the sales investment ratio of the top 50 international restaurant chain enterprises is about 1.2.
Suppose we want to return our capital within one year, which means that besides reaching the break-even point, we need to earn back the initial investment of 560,000 yuan. Then the daily target turnover should be 560,000/12/30/(1-30%)+breakeven daily turnover (2,867 yuan) = 5,089 yuan (breakeven turnover+additional turnover required to recover investment, that is, the standard of daily business days). If the restaurant has returned to its original capital, it can replace the initial investment with the investment return it wants to achieve every year, and then it can achieve its business objectives.
Several aspects that should be paid attention to in managing cash flow
Catering enterprises must pay attention to the following aspects when managing cash flow:
1. For those customers who seriously affect the DSo value of your receivables, you should take appropriate solutions and resolutely block them if necessary;
2.DSO management should be as strict as fund management, establish a benign system and stimulate the rational operation of fund flow, such as linking with the income of specific business personnel;
3. To continuously expand the business scope, the more new customers there are, the more normal the cash flow operation will be;
4. Improving the efficiency of cash flow operation is an urgent task for catering enterprises at present. Cash flow efficiency is not significant, and it is not easy for enterprises to achieve growth. Many catering enterprises are very concerned about financing. If the problem of internal cash flow management cannot be solved well, then how much money is given to others will not play a role in the growth of the enterprise itself. There should be a "blacklist" inside catering enterprises, through which you can always know which enterprises can never do business with them; Which companies you cooperate with may not be profitable, but they are the key to your real growth; Which enterprises have limited scale and poor reputation, but also rely on your funds to do business, dealing with them can only be used, we must guard against …
Improving the efficiency of cash flow is the key to the growth of catering enterprises. Grasping this point will bring safety and efficiency to enterprises. In order to improve the efficiency of cash flow, we must change the traditional management mode and bring cash flow management into the norm. It is the fundamental way to maintain the long-term stability of catering enterprises to be highly vigilant about the cash flow operation in daily operations.