Having a food business is one of the best ways to create positive cash flow. Since food is a daily necessity, there is always a market ready to buy as long as what you serve is quality food that is reasonably priced. It also helps if your restaurant, eatery, or food stall is located in a high traffic, high volume place easily reached by customers.
There are many ways to improve cash flow including having a rationalized staffing plan, having a timely stock inventory, or reducing waste in food production. There is a reason for the cliché, “Cash is King.” The flow of cash in and out of your establishment determines whether you stay in business or not. But as all people who are into a food business already know, it is not that simple.
The reality is, being in the food business is a challenging endeavor. Needless to say, competition is stiff given the availability of hundreds, if not thousands of choices. Just walk along any busy street and you will find endless options ranging from the upscale restos, mid-range priced diners, or the more ubiquitous food stalls and carinderias that all offer a good menu that is priced just right for their niche market or a certain type of diner. What if a newer restaurant suddenly sets up in front of your venue and gives you a good “fight?” Can you handle the change in cash flow when some of your regular or would-be customers move to the other side?
Or how will you handle the change in the price of commodities like rice, meat, fruits, and vegetables? This would surely upset your usual budget for the restaurant kitchen or commissary. Even the supplier you’ve known and trusted for years might instantly yank up prices in order to keep up with inflation and market forces that dictate how much food items cost.
Have you even considered the need to constantly innovate not just your menu but the total dining experience in your restaurant?
Perhaps it is time to do a renovation of the dining area or the kitchen of your restaurant?
Perhaps you are in the food manufacturing business and you find yourself needing to invest in the latest equipment for cooking and packaging your food product.
Indeed, there are challenges that affect your cash flow and, ultimately, the bottom line of your business. But for the true-blooded entrepreneur or businessman or woman, the only acceptable result is success.
Succeeding in a food business — whether it is in producing and packaging food, having a restaurant, a food stall, or even participating in a food park — the key is always found in the infusion of capital. This is another proven way to improve one’s cash flow.
While it may sound counter-intuitive, getting a business loan is a good option. With a business loan, you can bridge the gaps that bleed your business. As a financial tool, a business loan can literally save your business and bring it back to life.
Cebuana Lhuillier’s Business Loans have helped food entrepreneurs and other people who entered into a business of their own. (We started offering our business loans only this year. Karl) The loans offered by the country’s top remittance company are affordable, flexible, and accessible to people from all walks of life.
Having a food business may be a daily challenge. It takes long hours of work and a genuine passion to keep your customers satisfied. With a well-calculated loan, taking your food business to the next level will be an achievable goal. If done right, pump priming your business will help ensure that cash flows back to you like an unlimited buffet of success.