Customer Service Hotline: 02 9533 2211

How Big Business Affects Small Business Through Cash Flow

  Oshiklenz   Apr 14, 2022   News   0 Comment

How Big Business Affects Small Business Through Cash Flow

A good cash flow is one of the most important aspects of building a healthy business. It’s often cited that cash flow problems are a major contributor to failure in small businesses. There’s no denying that it’s important, so planning your cash flow shouldn’t be an afterthought. 

But first, let’s define what a cash flow is. Cash flow refers to the movement of money into and out of a business. Over the course of a month, most businesses receive cash from clients as they use their products or services. Additionally, these same businesses have rent or other expenses they are required to pay. This transition of money into and out of a business is what we refer to as cash flow. 

Because every business, big or small earns and spends cash, it’s critical that you understand how important cash flow is to your company. In a cash flow analysis, you will see whether the company generates enough cash to cover its current expenses and debts.

Diving deeper into the topic of cash flow, it’s easy to spot that small business have bigger challenges in maintaining a positive cash flow compared to big businesses. This article will talk about how large businesses pressure small businesses to fund their dealings by stalling payments. 

Large and small businesses exist in an ecosystem. They might depend on one another in many ways. While it might seem that large businesses can exist without small businesses, in fact, their relationships are vital. 

Small businesses often supply vital services to large businesses. For example, big manufacturers making complex products usually rely on hundreds of smaller suppliers to make specific parts. However, problems arise when large businesses start to put pressure on small businesses by stalling payments, for example. This puts small businesses at an even deeper competitive disadvantage. 

Large businesses are happy to invoke small businesses when it’s convenient, especially when it helps them keep power. It’s essentially reputational laundering. But what can be less obvious is that these same entities are constantly finding new ways to extract money and power from small businesses in order to maintain their positions and increase profits. 

We saw this happen almost everywhere on a regular basis. For example, just a handful of companies control the majority of the restaurant food delivery market; restaurants have little to no choice but to pay whatever fees and commissions they charge. 

If you own a small business like a restaurant, clinic, or spa, one thing you can do in order to gain a competitive advantage against big businesses is personalization. Nothing comes close to the personal touch in making an impression on your customers. 

One thing you can do is provide a steady supply of hot towels and wet wipes in your establishment. This may be a small gesture but it’s something that your customers will definitely remember and will make them go back again and again. At the same time, here at Oshiklenz you can also have an opportunity to build another business. We offer Wholesaler opportunities if you’re looking to add an established brand to your product line. 

Contact us by calling (+61) 2 9533 2211 or emailing us at [email protected] we will be standing by to answer your questions. 

Post a Comment

Your email address will not be published.

*